JioPhone Next Price: Why it hasn't been Revealed Yet

When launching the JioPhone Next at the Reliance AGM 2021, Mukesh Ambani proclaimed that it will be the cheapest 4G smartphone in the world. Well, how cheap will it be? There is a solid reason as to why Reliance has not revealed the JioPhone Next price.

How Well is the Phone Cooking?

Talking about the spec sheet, it reads about as well as one might imagine. According to XDA Developers, the phone will come with the Snapdragon 215. What's more, the phone will come with two cameras; an 8 MP front camera and a 13 MP OmniVision OV13B10 rear sensor. Moreover, the device will have the model name LS-5701-J and will come with 2GB RAM along with Android 11 (Go Edition). The phone will also run two SIMs; however, it will likely come with one

The phone will also come with the Google Camera Go and Duo apps, along with the complete Jio apps suite. According to multiple reports, the phone will run an "highly optimized" version of Android, which will also come with Google Play Store.

The complete spec sheet:

• Cameras: 13 MP Rear Camera; 8 MP Selfie Camera
• Processor: Qualcomm Snapdragon 215
• RAM: 1-2 GB
• Storage: 16-32 GB
• 4G Support: Yes

Needless to say, the phone is stacked.

Why the JioPhone Next?

Jefferies, a brokerage firm, said in a note that Reliance Jio has targeted a “large addressable market” of around 540 million, including feature phone users, current JioPhone and smartphone users with devices priced under $100.

There are about 300 million 2G users in India right now, and that remains one of the largest potential 4G customer base in the country. While the three telcos struggle to pry customers from each other, Jio also has an eye on these customers. Moreover, the telco also has about half a billion first-time phone users in mind as well. Reliance Jio already has two 4G feature phones called the JioPhone and JioPhone 2. Incidentally, the telco has shifted more than 100 million of those devices.

This uncaptured market has proven to be enough of an incentive to launch an affordable smartphone.

JioPhone Next Price: How Far Below $100?

A lot of figures have been thrown around. Conservative estimates place the price at around the said mark. However, people have went as far down as $50, or Rs. 3,500. As ridiculous that number looks, it might be the more accurate number out of the two.

Google and Reliance have actually faced a lot of difficulties in putting the phone up together. Back in May, crucial components such as displays and chipsets were already in short supply due to the pandemic. The second wave of the pandemic also increased the time it took to get materials as well. It took as long as 60-75 days to procure such materials, which was 30-45 days before the pandemic. Since China supplies a major share of almost every part of a smartphone, shortages there have rippled throughout the world.

Not only the shortages, the prices of key components have gone up too. Display prices have shot up 40%. Moreover, placing bulk orders for chipsets has been getting more and more difficult.

There are issues with assembly as well. There are delays with delivery of the surface mount technology machines. These machines are used to assemble thousands of smartphone micro components an hour. The timeline now stretches to 6 months, compared with 45 to 60 days as recently as January.

That’s not all – shipping costs are another of the issues. A 20-foot container from China to India that cost $800 pre-pandemic jumped as high as $5,000 and now goes for $3,600.

All these factors will definitely work towards increasing the price point of the phone. Or in a typical fashion, reduce Jio's profit margins. However, the company has already placed an order of 5 million units with UTL Neolyncs. Reliance are coming to the smartphone market all guns blazing, it seems.

The Price...Structure

For better or worse, companies have learnt how to mask the actual pricing of their product by introducing pre-booking prices. For instance, anyone can pre-book the Ola Electric Scooter for Rs 499; Ola hasn't even started commercial production yet. This gives them an idea of how many scooters to make.

The same will be Reliance's ploy, as the conspicuous absence of a price point suggests. Reliance can go as far as allowing people to pre-book JioPhone Next tomorrow, for as little as Rs 499, or even lower. The phone will likely ship somewhere around Diwali.

According to Mukesh Ambani himself, the phone will retail at under $50, or Rs. 3,500. We can hazard a guess at Rs. 3,499, for being the JioPhone Next price.

JioPhone Next: A Phenomenon or a Bust?

When you look at the phone from a purely smartphone perspective, it is barely a smartphone. The phone will have the cheapest materials possible and the bare bones of the Android experience. Therefore, it is not for the mobile gaming enthusiasts out there.

However, if you are a person who has never held a smartphone in your hands, this might as well be a great chance to switch. Reliance Jio wants to capture a user base with no representation in the glamorous world of 5G and ultra high speed latency. For the 300 million 2G users of India, the JioPhone Next might as well be something that pulls them to the forefront.

Reliance Jio has kept its knack for shrews business strategies, it seems.