Jio-Gooogle tie-up will be a major climate change in the smartphone market.

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On 13 July 2020, CEO Sundar Pichai announced India Digitization Fund and thatGoogle will invest ₹75,000 crores in India over the next five-seven years, indicating that Google plans to scale up its India operations and become a key player in the country’s digital ecosystem.

This fund will focus on areas that are important to Digital India.

The formal agreement came on the back of Google’s Rs 33,737 crore investment plan in Jio’s parent, Jio Platforms, for a 7.73% stake.

The Indian market is one of the fastest-growing smartphone markets. Google and JioPlatforms have entered into a pact to jointly develop an affordable entry-level smartphone with Android operating system and the Play Store.

Google will provide its Android operating system and the Play Store for smartphones that Jio will launch in the market. Google is also aiming to take the affordable smartphones and services developed out of its partnership with Jio to the rest of the world.

“We are excited to rethink, from the ground up, how millions of users in India can become owners of smartphones”-Said Google.

Adding that there is a need to accelerate the migration of 350 million Indians, who currently use a 2G feature phone, to an affordable smartphone –said Mukesh Ambani, the sixth-largest richest man in the world.

Jio-Google tie-up in the smartphone market can threaten Chinese smartphone sales in India.

  • Where, Xiaomi holds 30% of the Indian smartphone market and Xiaomi market leads the India smartphone market with a 6% YoY growth in Q1 2020 to reach its highest ever market share since Q1 2018.
  • Vivo grew 40% YoY in 2020 Q1 driven by strong performance Y series models.

Jio has designed a complete 5G solution. It will be ready for trials as soon as the 5G spectrum is available and can be ready next year. Jio may well end up launching the cheapest operator 5G device worldwide. GST hike was announced during the quarter which we expect will have an impact on Original equipment manufacturer’s margins and new launches.  Most of the original equipment manufacturer has already increased smartphone prices due to the hike.

As due to India-China conflicts on Ladakh border, Indian PM speaking about the self-reliant economy to avoid the Chinese brands. This will be the perfect time for Jio to make announcement’s about 5G smartphone. Where Indian brands failed to achieve heights in the Indian smartphone market. Jio will be the game-changer of the future Indian smartphone market. Jio-Google tie-up will be a major climate change in the smartphone market. 

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