Reliance, whose main businesses include energy and retail in addition to technology, is expected to provide an update on these initiatives at its annual meeting of shareholders on Thursday, along with an ambitious plan to expand the 5G network. from India.
Smartphones are fighting
“Supply constraints impact almost everyone in the industry, but the impact on small, local players is even greater because they are not really the top priority for component manufacturers,” he said. said Kiranjeet Kaur, analyst at research firm IDC. Although Jio has enormous resources, he is still relatively new to smartphone gaming, “and the emphasis on the low-end makes it even more difficult to buy parts, she added.
A spokesperson for Jio declined to comment on his plans to release and sell the smartphone, but acknowledged that the pandemic could impact the timing of its deployment. Google did not respond to requests for comment.
India’s protracted Covid outbreak and the resulting economic crash have also hampered the ability of consumers to upgrade their devices, according to Tarun Pathak, director of research for mobile devices at Counterpoint Research. This makes the country’s smartphone market even more price sensitive at a time when it becomes more and more expensive to manufacture.
“This is where we see challenges for someone like Jio.… Every penny counts,” he said.
An uphill battle to build an e-commerce empire
Facebook’s $ 5.7 billion investment in Jio – one of the largest ever by the American company – is a marriage of convenience between two services that form the backbone of the Indian Internet. Facebook-owned Jio and WhatsApp each have over 400 million users in India, and the partnership between them is part of an effort to dethrone Amazon and Walmart at the top of India’s online retail market. .
JioMart, Reliance’s e-commerce platform, aims to do just that by bringing millions of Indian mom and dad stores online. Launched months before Facebook’s big investment, JioMart now operates in more than 200 Indian cities.
“Integrating independent traders has been a challenge since many [them] are wary of sharing their business information, and many are still unclear on the value proposition from their perspective, ”said Arvind Singhal, chairman of Indian consultancy Technopak.
“It’s probably true that progress in executing this vision has not been in line with Reliance’s initial expectations, but it would have been a miracle if everything had gone according to plan,” Singhal said. “Reliance is known to adapt very quickly [and] course correction, and so it is still very likely that JioMart will achieve its original goals. ”
– Diksha Madhok contributed to this report.