Jio partnership is key to Google’s next phase of investment in India
Of all the major announcements made by the Ceo of Reliance Industries, Mukesh Ambani at the company’s 43rd annual general meeting, the highlight of which was the partnership with Google. Ambani announced that the Google had taken over the Reliance Jio district for an estimated Rs 33,000. Google and Reliance Jio will work on the Android-based OS(software) for cheap Smartphones.
Now, this could actually mean some challenge for Chinese products established dominating the region. Brands like Xiaomi Realme, Oppo, Vivo have a strong presence in the high level market. In fact, the Chinese gadgets dominate the space in terms of market share. While they make their presence feel in the middle and in the low cost of premium, Chinese bread and butter are still the cheapest options.
This is where Jio's interaction with Google can deliver. Reliance Jio is known to offer products at really competitive prices or maybe in cheap prices and Smartphones are not expected to be any different. The integration of Google and Jio can be an attractive proposal for as many potential users as possible. Not forgetting anti-China feelings can also end up playing an important role.
Jio and Google platforms have entered into a transaction agreement by developing a low-cost smartphone The phone will be properly upgraded with Jio-specific apps and content. It will also be able to access the Google Play Store.
This is not the first Google max with affordable phones as it has a dedicated OS(software) called Android Go. What Android Go needs is probably the Jio 'factor'.
One should not forget the 5G angle, which may also play. As Jio has announced that its plans for 5G network solutions, they may also have less expensive 5G phones - something that remains a pipe dream right now.
Interestingly, Jio has partnered with one of the world's largest nails in Qualcomm. The partnership shows that Jio is really bad for the smartphone market, a space that isn’t really involved. The company led by Mukesh Ambani manages both Hardware and software in partnership with Qualcomm and Google.
In the feature phone market, Jio has a strong presence with JioPhone. The partnership with Google and Qualcomm has ingredients to offer in addition to the food thought of Chinese brands, which have not had a good competition in the long run. The smartphone market doesn't really need to be disrupted but the whole Google-Jio party structure can end up moving things a bit.
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