InvestorQ : How do you see the impact of Reliance Jio launching its low priced smart phones?
diksha shah made post

How do you see the impact of Reliance Jio launching its low priced smart phones?

Answer
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Neelam Naik answered.
4 weeks ago


If you though that the Reliance group was done with surprising the market with the telecom, digital and retail offerings, then think again. We could soon see the cheapest smart phone coming from the Reliance stable, benefiting the digital and retail businesses.

It is touted to be the next big masterstroke from Reliance Digital and could come in the form of a deeply low priced smart phone. It would have all the features of a standard smart phone but would be priced in the vicinity of Rs.4,000 to make it widely affordable.

The seriousness is clear from the fact that Jio has already asked local suppliers to ramp up production capacity in India to manufacture 200 million smart phones over next two years. The phone will run on the Google Android platform and would be the cheapest smart phone.

This is a natural backward integration for Jio’s digital business and a lateral offering for tis retail business. Having monetized its stakes, RIL is sitting on a war-chest of funds that it can deploy. This is likely to make a big impact for entry level demand for digital services.