JioPhone Next Pricing Is Not Disruptive: Jefferies

Bharti Airtel and Vi might partner with the original equipment manufacturers (OEMs) and financiers to bring their 2G users 4G decent smartphones.

Highlights

  • Jefferies, a major brokerage believes that the JioPhone Next doesn’t have a disruptive pricing.
  • Vodafone Idea doesn’t have any smartphone offer currently.
  • JioPhone Next is available in India for an upfront cost of Rs 1,999 under the EMI scheme.

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JioPhone Next

Reliance Jio recently unveiled the pricing and the features of JioPhone Next in India. The telco has announced that its much anticipated 4G smartphone will be sold for Rs 6,499 in India. It will be available under four EMI schemes which will be bundled with different voice calling and data benefits. Jefferies, a major brokerage believes that the JioPhone Next doesn’t have disruptive pricing. It doesn’t give the JioPhone or any other feature phone user any big incentive to upgrade to a 4G smartphone. Jefferies said that Reliance Jio might reduce the price of the JioPhone Next in the near future as it did with the JioPhone in the past.




Airtel and Vi Might Partner With OEMs, Financiers to Avail Smartphones at Low Costs

According to the analysts, Bharti Airtel and Vodafone Idea (Vi) might partner with the original equipment manufacturers (OEMs) and financiers to bring their 2G users decent smartphones at very low costs to fast-track their upgrade to 4G services. This way, the other private telecom operators will counter any market expansion challenge that the JioPhone Next brings to the table.

Airtel’s Rs 6,000 cashback offer is in the same lines as well. With the smartphone offer, Airtel will not only look to improve its average revenue per user (ARPU) as the users need to continuously recharge with Rs 249 plan or more, but the telco might also see its 2G user base convert to consuming 4G services.

Vodafone Idea doesn’t have any smartphone offer currently. The telco might come out with one very soon and that should heat up the competition in India.

JioPhone Next is available in India for an upfront cost of Rs 1,999 under the EMI scheme which will also attract a one-time processing fee charge of Rs 501. The rest of the amount can be paid off by the users in EMIs of 18 or 24 months as per their choice.

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TheAndroidFreak :

700Mhz LTE is 3-5km range. Speeds may vary. But range is superb.

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TheAndroidFreak :

By March we will see same.

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It'll not, until a few crore subscriber churn happens in next 6-7 month.

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