Jio Phone is already a meaningful contributor to growth for Jio, says Credit Suisse

India's overall mobile phone shipments grew 48 percent YoY in Q1 2018

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As we all know that Reliance JioPhone has shaken the Indian feature phone market and now a recent survey by financial service firm Credit Suisse estimates that around 40 million units of JioPhone have been sold so far and it had a 36 percent share of the January-March quarter of 2018 on an expanded market base.

 
Jio Phone is already a meaningful contributor to growth for Jio

"This implies Jio Phone sales of around 21 million for the quarter or roughly 7 million per month," survey said. Adding that there are speculations that the exit-run rate of March could also be much higher because of the Rs 49 plan which was introduced in late January.

 

Now compare this with net adds reported by Jio running at 8-9 million for January and February 2018 (March data is awaited - we will likely get to see a higher number when a company reports on April 27)," it said.

"Overall, we conclude that Jio Phone is already a meaningful contributor to growth for Jio. We estimate the total Jio Phones sold so far could be close to around 40 million," the survey added.

"Sooner than later, it could start eating into installed subscriber base of incumbents. Going forward, the potential release of KaiOS version of Whatsapp could be an added catalyst for sales of this device," it further added

Meanwhile, Hong Kong-based Counterpoint Research said that India's overall mobile phone shipments grew 48 percent YoY in Q1 2018 as the market was driven by the feature phone segment which doubled in Q1 2018 due to strong shipments of Reliance JioPhone.

In the featurephone segment, Reliance Jio now captures more than one-third of the total featurephone market - the highest ever in a single quarter, since what Nokia achieved at its peak and Itel, is the third largest player in the feature phone segment with 17 percent growth YoY in Q1 2018.

Tarun Pathak, Associate Director, commenting on the surprising growth of feature phones, added, "The demand for JioPhone continued through Q1 2018 as Reliance Jio's feature phone market share raced from 0 percent last year to 36 percent in Q1 2018. This demand was catalyzed by the introduction of a cheaper data plan, for the JioPhone in January: Rs 49 (

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