NEW DELHI: Reliance Jio along with Google is working to launch an Android-based operating system for affordable smartphones. Both the giants also announced that they will jointly develop an entry level affordable smartphone with optimisations to the Android operating system and the Play Store. The sole mission of both Jio and Google is to help feature phone users in India to buy their first smartphone. There is no doubt about the intent and of course, this is the best thing that can happen to the digital India story: all Indians using a smartphone connected to the Internet.
But doesn't this sound too familiar? Google has already tried doing the same with its Android One and Android Go initiatives. As far as Jio is concerned, we already know about the success of the KaiOS-powered JioPhones which came at an effective price of zero over three years. Having said that somewhere both the giants now feel the work is not yet fully done and it’s time to collaborate and gather pace.
The JioPhone introduced people to 4G connectivity but not smartphones. Meanwhile, Android One and Android Go devices were always expensive for most feature phone users. This is because you can buy a good feature phone in India by spending anywhere in between Rs 800 to Rs 1800 even in 2020. And most good Android phones are priced above Rs 5,000.
Google has Android Go as an exciting option for first time smartphone users, however, most Android Go phones rely on ‘Lite’ versions of apps. These apps at times do not provide a complete experience.
Reliance Industries Limited chairman and managing director Mukesh Ambani announced that there are 350 million feature phones users still in India. And launching an affordable Android-like device and having an Android-like OS may enable other device makers to launch affordable smartphones before India’s 5G story begins. It an ambitious plan, but there may be challenges, says Navkender Singh, tech industry analyst, IDC India. "Are affordable phones affordable enough for feature phone users? Also, do feature phone users care about 5G?" asks Singh. Here are 5 challenges that Jio-Google may need to address as per him.
'Feature phone users in India do not care about 5G at the moment'
“No. Let’s accept it, people who use feature phones right now have zero excitement in 5G,” said Navkender Singh, tech industry analyst, IDC India. “The fact they are still buying feature phones means somewhere it is getting their job done. While they can have one smartphone for the entire family, other members simply rely on a feature phone to talk, send SMS and stay connected,” he said.
According to him, cost plays a huge role for feature phone users. “These users know that by spending something around Rs 1,500 they can have a device with which they can call people and stay connected for around four years. They know that battery life is better in feature phones and they can stay connected by basically spending very little money on a monthly basis, thanks to affordable prepaid mobile plans,” he added.
"Another huge issue is that people do not know how to use a smartphone. There’s a certain amount of familiarity in using feature phones that helps. With incomes restricted, feature phone users are simply looking at the bare minimum to stay connected," he added.
'The definition of entry-level needs to be decided'
The industry needs to decide how much exactly an entry-level Android phone costs. “We have already seen Android phones in the price range of between Rs 4,000 and Rs 6,000. But somewhere these couldn’t help feature phone users make the shift. The budget for feature phone users is fixed at somewhere under Rs 2,000,” affirmed Singh. Unless, the industry breaches this price point, that too by offering a full-fledged Android phone, launching anything above this price point will have very little impact.
'It’s Android-like and not Android'
He says that the fact that Jio had to launch a ‘smart feature’ phone based on KaiOS or Google had to launch Android Go is because somewhere the industry believes that having a full-fledged Android smartphone to replace feature phones is not easy task.
“If feature phone users really want to get an affordable Android phone, why would they not opt for a used Android handset to get the full Android experience and instead of spend money on an Android-like phone,” said Singh.
'2G is here to remain and even if there’s no 2G, voice calls will continue to rule'
Singh says that 2G is here to remain in India for quite some time. “Even if 2G goes away completely in the next five years, the importance of voice calls can’t be ignored. Feature phone users will continue to rely on voice calls even on VoLTE. There are still close to 500 million users in India on feature phones and people are still buying 2G handsets to just talk and stay connected and it is too early to expect them to shift to an “affordable smartphone” that is still expensive for them. Also, people are continuing to buy feature phones even in 2020.”
'There is not much margin in the game'
Feature phone users mostly buy handsets from local shops. So, Google and Jio will have to reach out to the remotest of the local mobile retailers in the country to be a success. “Affordable smartphones may sound exciting but there is little money in selling them. This is the reason why Chinese brands are slowly getting out of the entry-level market.” said Singh.
“Jio can look at offering this affordable smartphone as a bundled product with data plans and other content offers like it did with the JioPhone. So, subsidising the cost of the device through various bundles may help Jio make traction in the market but the company has to be confident about the launch price. Irrespective of the bundling, if the price to be paid upfront is high then there would be few takers,” he added.
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5 challenges that Jio-Google need to address for affordable 'Android-like' 5G smartphones - Times of India
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