September 22, 2021

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JioPhone Next: How Mukesh Ambani’s Smartphone Will Run Without ‘Mind’!

JioPhone Next: How Mukesh Ambani's Smartphone Will Run Without 'Mind'!

Highlights

  • Jio has had to postpone the launch of the smartphone JioPhone Next.
  • The company has taken this decision due to the shortage of semiconductor chips.
  • Due to budget smartphone, Jio phone next will have special components
  • Keeping the price low due to chip shortage and rising cost is a big challenge.

New Delhi
Mukesh Ambani-led Reliance Jio has had to postpone the launch of its much-awaited smartphone JioPhone Next. It was to be launched on September 10 on the occasion of Ganesh Chaturthi but the company says that now its sales will start around Diwali. The company has had to postpone its launch due to the lack of semiconductor chip. It is considered to be the cheapest smartphone in the world. But analysts say that keeping its price low will be a big challenge for the company due to shortage of components and rising cost.

There is a huge shortage of semiconductor chips in the world at present. It is used in making electronic products, vehicles, smartphones and other gadgets. It is called the ‘brain’ of modern electronic machines. It costs a few dollars, but due to its lack, companies around the world are losing billions of dollars. The worldwide chip supply crisis started in 2020 with the arrival of the Kovid-19 pandemic. It has deepened in the last few months and many big companies around the world are struggling to meet the growing demand for electronic goods and components.

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what the experts say
Tarun Pathak, associate director at Counterpoint Research, told ET that the entry level has been affected the most due to the lack of components. Prices of some components have gone up by as much as 20 per cent. Managing the supply is now the most important thing for Jio. That is, the shelf life of the first version of JioPhone Next may be limited. Keeping its pricing affordable over the next 6-8 months could be a challenge. This will also affect the pricing strategy of Jio.

This phone has been developed jointly by Jio and Google. The company says that its testing is going on with limited users right now. Navkendra Singh, Research Director, IDC, said that the shortage of components and supply chain challenges have added to the difficulties of the consumer electronics sector. Therefore, the decision to postpone the launch of Jio’s smartphone can be easily understood. He said that being a budget smartphone, JioPhone Next will use certain components, which will increase its challenge.

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will the price increase
Abhilash Kumar, Analyst, Strategy Analytics, said that the prices of components have increased worldwide. This means that it will be difficult for Jio to sell its phone at the target price. The company is hoping that by Diwali, the shortage of components will be removed and their price will come under control. This will also help the company in advanced testing and rectify the vulnerabilities encountered at various levels of testing. Jio wants to launch JioPhone Next in large numbers, but due to the lack of components, especially semiconductors, it will have to face many challenges.

 

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