India, the world’s second-largest smartphone market after China with round 750 million customers, is struggling to get new smartphone consumers, as the typical individual within the nation finds it onerous to afford a brand-new smartphone.
Instead of switching to a brand new smartphone, hundreds of thousands of Indian shoppers choose to proceed with their current function telephones or solely improve to a brand new function cellphone. The latter has resulted in progress in function cellphone shipments within the nation regardless of these telephones being fairly old school and having only a handful of options in comparison with smartphones, which assist clear up most on-the-go computing necessities for a typical purchaser.
According to information shared by market analyst agency Counterpoint, function cellphone shipments in India noticed 10% year-on-year progress final 12 months, up from -31% in 2022. This progress comes as current function cellphone consumers resist from selecting a brand new smartphone.
Of the whole function cellphone market, 4G function cellphone shipments in India grew to 25% in 2023 from 9% in 2022. However, 2G function telephones nonetheless dominate the Indian market, with a 75% share, per Counterpoint.
Indian telecom large Reliance Jio leads the 4G function cellphone market, with a share of 27%, adopted by Transsion Holdings-owned Itel and Indian cellphone maker Lava at 24% and 18%, respectively, in keeping with Counterpoint. The telecom operator affords a spread of fashions within the section together with devoted tariff plans and entry to companies digital companies together with the nation’s real-time cost system Unified Payments Interface and apps comparable to JioCinema, JioTV and WhatsApp to draw the plenty.
However, Tarun Pathak, analysis director for gadgets and ecosystems at Counterpoint, instructed TechCrunch that the 4G function telephones from Jio have hindered smartphone adoption within the nation to a sure extent “as the consumers are now able to get basic apps on feature phones themselves.”
Jio eying a 5G function cellphone to capitalize on the pattern
Jio, the most important telecom participant in India when it comes to its subscriber base and revenues, is quietly planning a 5G function cellphone as manufacturers face challenges in attracting first-time smartphone consumers within the South Asian market, TechCrunch has solely realized.
The telecom operator owned by the Indian conglomerate Reliance Industries has been promoting function telephones for years and progressively moved to smartphones with Google in 2021. But its first smartphone was too dear for its mediocre specs and didn’t assist transfer the needle. Now, Jio sees function telephones because the strongest weapon it has to get telephones into as many fingers in India as attainable.
Jio’s 5G function cellphone will run Linux-based software program KaiOS, which already powers the telco’s current function cellphone vary. Contract producers Dixon Technologies and Neolync are at present prototyping the handset, sources mentioned.
The cellphone can be introduced at Reliance’s forthcoming annual common assembly, which is predicted in August, although it’s not more likely to be prepared for the mass market anytime quickly, in keeping with the sources. The cellphone’s pricing can be among the many questions that Jio is but to find out.
Sources acquainted with the matter instructed TechCrunch that the Mumbai-based telco is in preliminary talks with Qualcomm for the early model of its 5G function cellphone. However, different chipmakers could also be concerned within the remaining system, because the discussions are nonetheless on on its growth.
Qualcomm denied its participation in discussions with Jio when TechCrunch reached out this week. A Reliance Industries spokesperson declined to remark.
Alongside the brand new 5G function cellphone, Jio plans to launch its 5G Android pill and a 5G smartphone this 12 months, two folks acquainted with the telco’s plans instructed TechCrunch.
Dixon Technologies and Neolync didn’t reply to requests for remark.
Until now, Jio has a 4G line of gadgets, which incorporates the JioTelephone Next as its first Android smartphone….
