Reliance Jio Likely To Delay 4G And 5G Smartphone Launch: Here's Why

Reliance Jio's is planning to bring affordable smartphones in the country, but are likely to delay due to supply issues and increasing component prices. The upcoming smartphones are expected to attract 2G users to the Reliance Jio services and might increase the user base of the telco.

Reliance Jio and Google-branded smartphones are likely to launch before Diwali this year and it was expected the telco might make some announcement at its annual general meeting on June 24th, 2021.

Earlier, the company was planning to bring millions of smartphones at affordable prices; however, the company has now changed the numbers. However, the supply issues, materials cost, COVID- 19, and travel restrictions have forced the telecom operator to slow down production.

Notably, Reliance Jio wants to capture the entire handset industry as the telco did to the telecom sector; however, any delay of devices might affect its plans as Chinese brands like Realme, Xiaomi, Oppo, and OnePlus are leading the industry already. In addition, these companies are investing and invested hugely in their manufacturing lines in India.

Reliance Jio And Google Issues

Meanwhile, a new report by Bloomberg pointed out that both companies have cultural differences as Google wants to plan everything in advance, while Jio makes last-minute calls. The report further states that Jio is working with a top-down operating model, whereas Google works on self-directed models.

This means both have different ways of working and planning things and this could also be a reason why the smartphone has been delayed despite announcing a partnership last year.

The report further revealed that the recent meeting between both companies is failed due to hardware specification, short supply chipsets, and displays. In fact, the time to get these materials have been doubled from the earlier because of shortages. Notably, Google bought a 7.73 percent stake in Jio platforms, which is worth Rs. 33,737 crores.

Both companies want to develop 4G and 5G smartphones under these partnerships, but these issues have been delaying the launch despite Jio's wants to introduce devices on its AGM because its fans are waiting for affordable smartphones. However, things do not seem right as other smartphone companies are also facing supply constraints.