Google and Mozambique ambassadors are hoping to crack down on one of the world’s largest undisclosed smartphone markets, unveiling a device that they hope will be cheaper to convert 450 million Indians into smartphone users.
To replace the previous generation Amani Joyophon, the company will run a custom version of Android designed by the companies. Provides a mix of Google and Joyo with voice support in multiple Indian languages for users with limited literacy. Analysts believe it will sell for less than $ 50.
“Joyo was good at two things. One is the mega-launch. Second, breaking the price [barrier], ”Said Neha Singh, founder of Trax, an informant in Bangalore.
While both companies are skeptical of how much money they will make on their handsets, the broader goal is clear: to improve the range of 2G and even 450M Indians who use older phones as much as possible.
Google’s parent company Alphabet CEO Ambani and Sandar Pichai Joyfon are trying to attract the next “billion” global Internet users, suggesting that Geo is expanding overseas and that Geoffon could move around the world.
“Google wants to be the first call for these users,” said Vivacandand Suburman, an analyst at Ambit Capital in Mumbai. “These new Internet users do not use the desktop. They do not know that the Internet is an open protocol. For those new Internet users, those apps are the Internet. ”
Video will be a great opportunity. Finding new smartphone users who don’t have new phones, watching YouTube or cricket matches broadcast on Joyo TV will be the starting point for selling advertising information and revenue, as well as services such as payment.
Launched in 2016 and used by rock bottom prices to grow to 426m users, it is an opportunity to repeat Joyoff’s previous success. Four years later, Ambani helped move more than 100 meters of equipment back, earning the basic 4G handset for $ 1,500 ($ 20).
Joyo’s huge growth last year helped Facebook attract $ 20 billion in investments alongside Facebook and Lake Silver. But the telecom company is being pressured to increase its user numbers and revenue.
More than a fifth of Joyo’s subscribers are out of business, with an average user revenue of $ 138 ($ 1.85) per month behind Barti Ertel. Ambani said he would list them in public markets, but first he should show that he can bring more Indians to smartphones and persuade them to use more internet services.
Joyofon continued to face high challenges. The Indian smartphone market is dominated by Chinese brands such as Xiaomi and Viv, and Google’s previous efforts to make the market clearer – like its Pixel smartphone – have failed.
About 80m existing Jophon users are expected to complete their contracts in the next two years, according to Investment Bank Jefferson.
The 2G users with more than 300M are also a difficult market to break. Many people involved in economically vulnerable demographics, such as migrant workers, pay less than 50 rubles ($ 0.67) a month to communicate with local families.
The companies have not released the price of the new smartphone. Due to the global shortage of chips and other mobile phone accessories, industry participants are skeptical that a $ 50 or less deal could be made without significant subsidies.
Panjaj Mohenro, chairman of the Indian Cellular and Electronics Association, which represents mobile phone manufacturers, said: “I do not believe that the supply chain situation will allow for much lower costs than existing players.” I did not see an earthquake on our way. ”
Google is experimenting with similar projects elsewhere, joining the French operator Orange last year to launch a $ 30 Sanza Touch smartphone in several African countries. They say it’s a very affordable smartphone, but sales were modest.
For Ambani, the new smartphone is one of a number of products that the energy-focused team hopes to bring to India as the “National Technology Champion”.
But there are only four Joyo apps in Google’s 100 Best Play Store, as described by App Anne, including JioSaavn and MyJio, a music streaming app that combines multiple services such as phone tops or tests. Joyo’s chat and marketing apps go behind competitors.
Meanwhile, Joo Online Marketing is available in 200 cities and offers lower prices than its competitors, including Tata Big Bast or Softbank-supported groceries.
But it remains to be seen in metrics such as app download, revenue and basket size, broker Motal Oswal. The partnership with Facebook, which was launched more than a year ago, is still being tested.
Google’s partnership with Ambani hopes that Facebook’s first attempt to conquer the Indian Internet market will not help it succeed, which has blocked some attempts by regulators to turn their users into apps.
Counterpoint Research analyst Neil Shah says the price will be “the biggest hurdle” for the new phone. He also said that with subsidies, users should double the amount they used to pay for cheap 2G services a month.
Another challenge is whether enough phones will be available to suit the needs of the companies. When parts such as semiconductors are in short supply, Mujandro estimates that in the future, Gio will be limited to sending two million devices a month.
“The global mobile phone market is very strong right now,” he said. It would be a ridiculous test of supply for these giants when there is a shortage. ”
Trust and Google did not comment.