The upcoming 5G smartphone from Reliance Jio may be priced between Rs 8,000 and Rs 12,000, once it achieves broad coverage. A report by Economic Times (ET) said that the company may go for this pricing in order to attract a large number of 4G users.
Quoting a report by Counterpoint Research, ET said that the strategy is similar to the one used by the company with the JioPhone Next 4G, when it attracted mass users of 2G to shift to 4G services.
“The two-prong strategy will be key to Jio’s growth and extend its leadership in the 5G era as well. Further, at some point in 2024, Jio will also be compelled to launch an affordable 5G mmWave+sub-6GHz smartphone as the cost deltas between the two have narrowed significantly from an overall BoM fitting perspective,” the Counterpoint report added.
During the Annual General Meeting 2022, Mukesh Ambani had said that the company will launch 5G services in four metro cities, Delhi, Mumbai, Chennai and Kolkata by Diwali. A pan-India coverage is expected to be achieved by December 2023.
By FY24-25, the company may achieve a subscriber base of 12/21 million and blended average revenue per user (ARPU) of Rs 188/Rs 208, a report by Spark Capital showed.
Jio 5G plans are expected to be 20 per cent costlier than the 4G premium packs, the report added.