China’s component shortage cripples Jio’s 5G smartphone plans

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Reliance Industries’ digital company Jio Platforms was scheduled to launch its first low-cost 5G smartphone in partnership with tech giant and investor Google at its annual general meeting (AGM) on June 24.

Strong global demand for components hit smartphone production plans

The time to purchase parts such as components such as chipsets and displays increased from 30-45 days to 60-75 days

Reliance Jio’s plans led by Mukesh Ambani to roll out a low-cost smartphone in partnership with global tech giant Google could be delayed due to a shortage of critical components, according to reports.

We expected that Reliance Industries’ digital company Jio Platforms will announce the launches its first low-cost 5G smartphone in partnership with tech giant and investor Google at its Annual General Meeting (AGM) on June 24. On top of that, the company will also launch its budget JioBook line of laptops this year, which was announced earlier. be powered by JioOS.

However, the company may reduce the initial launch as it faces problems with sourcing electronic components, reported YOU. The teams at Reliance Jio and Google have reportedly built a low-cost version of the Android operating system that can run on cheaper components. However, strong demand for components globally has hit production plans for the smartphone.

The time to purchase parts like components like chipsets and displays has dropped from 30-45 days to 60-75 days due to shortages in China, people in the know have said. Even the cost of several components increased by 40-80%.

The development of the Jio 5G smartphone is part of a two-pronged alliance with Google. First, Google took over 7.73% stake in Jio Platforms last June for INR 33 737 Cr. Second, the two companies have a business deal to jointly develop an entry-level 4G smartphone capable of supporting 5G in the future.

The entry-level smartphones of the sub-INR 5K range have been in trouble due to low demand and high distribution costs. According to the research firm International Data Corporation (IDC), this segment represents less than 5% of Indian smartphone market where 22 million handsets were sold in October 2020. This market is mainly dominated by Xiaomi, Lava, Itel and Samsung. But many of these handset makers have reduced their product portfolio in this category due to unsustainable cost dynamics. Now that Jio plans to enter this market, the company is expected to convert its 120 million users to multifunction phones and help them switch to affordable smartphones. Which means that unlike other suitors, Jio already has a potential market here that can be easily operated.

Besides smartphones and laptops, Reliance Jio is also working on a next-generation JioGlass mixed reality device for 3D and virtual interactions, with potential applications in industry and manufacturing. The Jio Glass should be a lightweight device connected to a smartphone. The company said it will come with 25 built-in apps to enable augmented reality video meetings and more. The product would be powered by Jio’s native 5G solution.


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