Mukesh Ambani’s plan to bring a cheaper smartphone to market might not be as he would have liked. Global supply chain issues, Pandemic in India, and hike in shipment cost are causing a headache for the Indian Billionaire. To what extent can this stumbling block make the plan of Google-Reliance smartphone tumble over? Let us find out.
In the start, Reliance Industries had been seeking millions of sales for the cheap phone they are about to produce. However, the company has planned to shrink its production due to components shortage.
The Google-Reliance smartphone will be shared at June 24’s conglomerate shareholder meeting. On the other hand, the final launch might be made by August 2021. This is not confirmed yet. All we can do is wait till things get clearer. The company officials will soon share the details.
The company wishes to recreate the fastest-growing smartphone across the world. This idea might sound good. However, it is hard to make it work.
And, any further delays can bring a serious backlash. Competitive companies like Oppo, Xiaomi, and OnePlus have successfully secured a name in the local market and target the same audience.
Engineers take on the Google-Reliance Smartphone Crisis
The engineers of the two companies are joining hands to produce the perfect Google-Reliance smartphone for the Asian giant. Statistics suggest that internet users in India will rise above 900 million by the end of 2025. They made a cheap Android operating system that gives a nice performance. However, a problem in the supply chain of these components is creating huge trouble.
The cultural restraints are also causing disruptions at this time. Many meetings are taking place. However, they fail to be productive. Also, components like chipsets and displays for Google-Reliance smartphones are missing. It is due to the impact of the Covid-19 pandemic. Covid has led to an increase in the demand for technology and even Apple and Samsung are facing supply chain delays. This is leading to a shortage of basic parts.
Furthermore, situation is leading to last-minute calls and decision-making. Unfortunately, Google believes in planning out things in advance and does not encourage this behavior. Such problems, in the beginning, are not good for the future. It would take 60 to 75 days to get these parts from China. Earlier on, it was a matter of 30 to 45 days. Moreover, there is an extreme price hike seen in shipment and cost of items from China and elsewhere.
Googles Priorities
Although, Google has a decent background in the smartphone market due to the success of Google Pixel 4 and Google Pixel 5. But presently Google is focused more on the upcoming Google Pixel 6. That might add to the complexities of the Google-Reliance joint smartphone venture.
The price is another issue. The threat by Chinese Tech companies is even forcing Samsung to reduce the price of upcoming foldable and flip phones. How Reliance will coop up in this tech war will be interesting to watch.
We will keep you updated on the progress