Google joins hands with India’s richest man to usher in changes in smartphone market

With the domestic mobile phone market falling into a long stagflation period, the overseas market, especially India, has become one of the most important growth engines for domestic mobile phone manufacturers. According to the second quarter mobile phone shipment report released by canalys, Xiaomi, vivo, oppo and realme accounted for 30.9%, 21.3%, 12.9% and 10% of the market share respectively, which means that three quarters of the Indian market is dominated by Chinese manufacturers.

However, just as Nokia, moto, Samsung, Sony Ericsson and other manufacturers occupied the majority of the domestic mobile phone market in those years, naturally, Indian mobile phone manufacturers would not be willing to maintain the status quo. Google’s next step is to launch customized smart phones with ultra low prices in India after it announced on July 15 that it would buy about 7.7% of the shares of the largest Indian telecom company, Ji platforms, for us $4.5 billion.

therefore, it is believed that the purpose of this cooperation between Google and Ji platforms is quite clear, and it is aimed at hundreds of millions of users who have not yet experienced the Android ecology in the Indian market. And some people think that Google and jio Perhaps the purpose of platforms’ joint launch of ultra low price smart phones is not to rely on hardware itself to make profits. After all, Google is essentially an enterprise with advertising business as its core revenue source. Therefore, the more users of Android system, the wider the coverage of its GMS services, the better the effect of natural advertising.

as for the purpose of Jie platforms, it may be very simple to get a share of the booming mobile phone market in India. When it comes to Ji platforms, many friends who are concerned about the mobile phone market in India should not be unfamiliar. It is an enterprise of Reliance Industries controlled by Mukesh Ambani, the richest man in India. As early as 2018, the telecom operator launched a functional machine called the Jiao phone, and it took less than half a year to get more than 30% of the local market share from scratch.

the reason why Jie phone can gain a large amount of market share so quickly is actually quite similar to that of “China cool union” in the domestic market. The latter is through cooperation with operators, while the former is directly led by operators. They all reduce the purchase cost of users through high subsidies, and ultimately achieve the improvement of market share. Of course, it is effective to target the consumers who have never contacted the mobile Internet before by using the function machine. But after all, the growing material and cultural needs of users are also objective. Therefore, after experiencing the advantages of mobile phone products, they will naturally “look forward to Sichuan”. If they want to use more functional smart phone products, they will be put into the arms of domestic mobile phone manufacturers Medium.

after attracting users through the free strategy in the first two years, with the arrival of the replacement cycle, Ji platforms has made a wedding dress for domestic mobile phone manufacturers in vain, which is obviously unacceptable to anyone. Therefore, this may also be the reason why it introduced Google as a strong supporter. What’s more, in the past three months, Jie platforms has received 14 financing transactions totaling nearly $20 billion, including not only Google, but also Facebook, which has invested $5.7 billion, while Qualcomm has invested $97.1 million.

as a result, today’s geo platforms not only has a huge sum of money, but also has the support of Google and Facebook, the two most powerful overseas digital advertising platforms, as well as the support of Qualcomm, a famous chip giant. It has extremely strong foreign aid in terms of system, hardware, and publicity channels. In contrast, the situation of Ji platforms today is exactly the same as that of domestic mobile phone manufacturers that obtained access to Qualcomm SOC, JDI LCD panel and Samsung / MgO memory.

in fact, the recognition of domestic mobile phones by consumers in the Indian market depends on hard power, that is, the cost-effectiveness brought about by the combination of product strength and user-friendly pricing. Although after last month’s turmoil, the sales and popularity of domestic mobile phones in the Indian market did not decline, but showed a trend of increasing popularity instead of decreasing. The new products can still attract local consumers to queue up to buy.

and the reason for this is very simple. Although Professor Zhang Weiwei of Fudan University said in his speech “this is China”, India claimed that it has 300 million middle class as early as 2010, but in fact, in terms of per capita GDP, India, which has just exceeded 2100 US dollars, is still a typical developing country. Therefore, from the Perspective of per capita GDP, India in 2019 is only equivalent to China in 2006.

it is obvious that in such an environment, buying the best products at a lower price is the value generally accepted by Indian consumers at this stage. Therefore, for mobile phone manufacturers, if they want to succeed, they have to play the price performance card. Analysts from counterpoint research and IDC have already said that Google will provide a smartphone product based on Android system, but the price will not exceed 50 US dollars after cooperating with Ji platforms.

what is the position of the $50 smartphone in the Indian market today? At present, in this market, the price of entry-level products is usually between $70 and $100, and this market is almost dominated by domestic manufacturers. However, after the success in the function machine market with the help of a number of American technology giants, it is not impossible for Jiu platforms to repeat the road of the rise of domestic mobile phone manufacturers. After all, in the entry-level market, price sensitive users are the absolute mainstream, and cheaper prices are the first factor to attract users.

Nowadays, the market position of domestic mobile phone manufacturers relies on the massive consumer groups provided by the huge local market, which makes upstream power manufacturers like Samsung, Sony, JDI, Qualcomm, Broadcom see the possibility of “technology for market”, coupled with the extreme cost performance brought by the complete supply chain and demographic dividend, as well as their own continuous technological innovation.

as a large country with a population of 1.3 billion, India has a huge market potential. And with the policy adjustment of Indian market, mobile phone manufacturers are required to produce locally, which makes a large number of smart phone related industries begin to land gradually. Manu Kumar Jain, head of Xiaomi’s Indian market, said in an interview with the media last autumn that more than 99% of Xiaomi’s smart phone products sold in India are produced locally. In addition, upstream enterprises including Foxconn, Tianma, helitech, tongxingda, TCL Huaxing and other upstream enterprises have also settled down in India.

as for the most critical technological innovation, even if the geo platforms itself may not be able to do so, Google’s technical strength is obviously not to be underestimated. Therefore, it may not be very difficult to create a smart phone product with a price of about $50 and able to do a great job. Therefore, it is obviously worth the domestic mobile phone manufacturers to be cautious about the joint venture between Ji platforms and Google, so as to avoid repeating the story of overseas brands losing their feet in the Chinese market.

Author: zmhuaxia