JioPhone will be available for an effective price of Rs 0

[ito]

http://economictimes.indiatimes.com...ature-phone-launched/articleshow/59695466.cms

Reliance Jio today announced the launch of the much rumoured 4G feature phone. Along with that the telco has announced its cable TV. The phone will be available for free but buyers will have to deposit a fee of Rs 1500 which will be refundable after three years.

The phone was launched at the 40th AGM meet of RIL. Jio phone will be available for beta testing this 15th August, while pre booking will start from 24th August; physically it will available from September this year.

 

[silent poison]

Reliance Jio today announced the launch of the much rumoured 4G feature phone. Along with that the telco has announced its cable TV. The phone will be available for free but buyers will have to deposit a fee of Rs 1500 which will be refundable after three years.

WoW .... Ambani Rocks hehe.. !!!

 

[hans]

1500Rs for a 4G Phone? How could it be possible?

http://economictimes.indiatimes.com...ature-phone-launched/articleshow/59695466.cms

Reliance Jio today announced the launch of the much rumoured 4G feature phone. Along with that the telco has announced its cable TV. The phone will be available for free but buyers will have to deposit a fee of Rs 1500 which will be refundable after three years.

The phone was launched at the 40th AGM meet of RIL. Jio phone will be available for beta testing this 15th August, while pre booking will start from 24th August; physically it will available from September this year.

 

[ito]

1500Rs for a 4G Phone? How could it be possible?

At the end of third year Rs 1500 will be given back.Rs 1500 is the deposit and not the price of the phone.

This will change a lot of equations in phone market. Chinese companies that are leaders now in smartphone business in India will suffer the most, especially the low cost phone market.

 

[hans]

But frankly with only1500Rs you can even not build a 4G phone.
A lowest spec 4G phone with low performance and without brand will require at least 4000Rs
My question is whether the phone is real for production..
In China most phones sold out cost more than 10000Rs. That is a reasonable price.

At the end of third year Rs 1500 will be given back.Rs 1500 is the deposit and not the price of the phone.

This will change a lot of equations in phone market. Chinese companies that are leaders now in smartphone business in India will suffer the most, especially the low cost phone market.

 

[Chhatrapati]

But frankly with only1500Rs you can even not build a 4G phone.
A lowest spec 4G phone with low performance and without brand will require at least 4000Rs
My question is whether the phone is real for production..
In China most phones sold out cost more than 10000Rs. That is a reasonable price.

The Reliance offers are strange.
They gave mobile data of around 1 TB for free. Then gave around 90GB @ Rs360 ($5).

 

[ito]

But frankly with only1500Rs you can even not build a 4G phone.
A lowest spec 4G phone with low performance and without brand will require at least 4000Rs
My question is whether the phone is real for production..
In China most phones sold out cost more than 10000Rs. That is a reasonable price.

There is a business logic here. By taking JioPhone, the company will lockin the customer for next three years. JioPhone I guess will work with Jio network only. The revenues from data and voice services well I guess will
more than compensate for the cost of the phone

This is the phone.

 

[silent poison]

At the end of third year Rs 1500 will be given back.Rs 1500 is the deposit and not the price of the phone.

This will change a lot of equations in phone market. Chinese companies that are leaders now in smartphone business in India will suffer the most, especially the low cost phone market.

Already we impose 10% Duty on imported pieces of mobile phone ... so in coming times we will either force or through out chinese from Indian market ..

 

[hans]

The data actually cost nothing to the company.
But building a phone, you need to at least pay for the material and assembly.
1500Rs will not cover the price of such a phone in current market.

The Reliance offers are strange.
They gave mobile data of around 1 TB for free. Then gave around 90GB @ Rs360 ($5).

Sounds a bit reasonable.
Pay high for the voice and date to cover the phone price.
1500Rs seems not sufficient for such a phone. Must be compensated from data and voice cost..

There is a business logic here. By taking JioPhone, the company will lockin the customer for next three years. JioPhone I guess will work with Jio network only. The revenues from data and voice services well I guess will
more than compensate for the cost of the phone

This is the phone.

Those Chinese band like OPPO, VIVO,Xiaomi are made in India.
Those India band like Micromax are made in China..
With 10% duty, I am not sure who will suffer more..

Already we impose 10% Duty on imported pieces of mobile phone ... so in coming times we will either force or through out chinese from Indian market ..

 

[Chhatrapati]

Sounds a bit reasonable.
Pay high for the voice and date to cover the phone price.
1500Rs seems not sufficient for such a phone. Must be compensated from data and voice cost..

Probably, because they are looking for a monopoly over it. By giving freebies and attracting more customers.

Those Chinese band like OPPO, VIVO,Xiaomi are made in India.
Those India band like Micromax are made in China..
With 10% duty, I am not sure who will suffer more..

Reliance is already in talks with some Chinese brands.

 

[Stephen Cohen]

You need a Five Inch Screen to watch videos properly
and read mails

This is 2.4 inch ; not interested

 

[Jackdaws]

They are basically suffocating the competition. Which never augurs well in a free market economy. As it is the younger Ambani's company is pretty much bankrupt. Aircel has sold out. Idea-Vodafone are merging. Airtel is bleeding. Tata is fighting with Docomo and looking to sell out to Airtel.

Next one is broadband and then DTH.

You need a Five Inch Screen to watch videos properly
and read mails

This is 2.4 inch ; not interested

No videos - they will sell cables which connect to CRT, LCD and LED TVs and show their content for ridiculously cheap. It is not a Smart phone. It is a feature phone.

 

[Stephen Cohen]

No videos - they will sell cables which connect to CRT, LCD and LED TVs and show their content for ridiculously cheap. It is not a Smart phone. It is a feature phone.

How good is their 4 G service ; Any idea

 

[hans]

This is called competition. Will drive communication cost lower for you.

And personally I am not sure if any Chinese band is willing to make such cheap phone.
Profit rate could be very low...

Probably, because they are looking for a monopoly over it. By giving freebies and attracting more customers.
Reliance is already in talks with some Chinese brands.

 

[silent poison]

The data actually cost nothing to the company.
But building a phone, you need to at least pay for the material and assembly.
1500Rs will not cover the price of such a phone in current market.



Sounds a bit reasonable.
Pay high for the voice and date to cover the phone price.
1500Rs seems not sufficient for such a phone. Must be compensated from data and voice cost..



Those Chinese band like OPPO, VIVO,Xiaomi are made in India.
Those India band like Micromax are made in China..
With 10% duty, I am not sure who will suffer more..

It will be interesting to c with micromax the one you refer has now four plants working with CKD from previous SKD will change it self according to anti China demand or perish in the same way as chinese will in future ...

Looking at companies like Jio for whome importing technology and investment will never be a problem to make complete mobile phone in India ... it gonna be interesting remember Jio sim has destroyed market hold of companies that were meant to stay in India forever .