Reliance Jio Possible Reasons for Pricing JioPhone Next Expensive

A reason why Jio went with an expensive price could be that the company is actually trying to earn a bigger margin and turn its smartphone business profitable as early as possible.

Highlights

  • Reliance Jio recently launched the JioPhone Next in India.
  • Note that expensive and affordable is a subjective thing.
  • JioPhone Next won’t push a lot of legacy network users to upgrade to a 4G device.

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Reliance Jio

Reliance Jio recently launched the JioPhone Next in India. The pricing of the device didn’t go down well with many in the market. The telco was expected to price the device at or under the Rs 5,000 mark. However, it is now available for Rs 6,499 in the market. Consumers going with the EMI option will have to pay at least Rs 8,000 or more for each plan they opt for. For knowing about the JioPhone Next offer in detail, please click here.

It is worth noting that Reliance Jio is known for being aggressive with its strategies. So if you are wondering why the telco has gone with the JioPhone Next with such a cold offer, here’s everything you should know.

Reliance Jio Reasons that Might Have Pushed the Company to Price it Expensive

First of all, note that “expensive” and “affordable” is a subjective thing. The reason why we consider this an expensive device is because of its features. Jio could have easily priced the device at a lower rate, but it chose to stick with the Rs 6,499 mark.

This might be due to the rising cost of smartphone components. Everything right from the chipsets to displays have become expensive during the pandemic because of less supply. This could be one reason why Jio had to come up with a higher price point than expected.

Another reason why Jio went with a high price could be that the company is actually trying to earn a bigger margin and turn its smartphone business profitable as early as possible. Further, the EMI plans could be priced expensive to aid with increasing the average revenue per user (ARPU) figure for the company.

However, JioPhone Next won’t push a lot of legacy network users to upgrade to a 4G device. It will be interesting to see the sales of the JioPhone Next in the coming months and whether or not it can help the company in adding new subscribers.

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Tanay is someone with whom you can chill and talk about technology and life. A fitness enthusiast and cricketer, he loves to read and write.

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