Google-Jio deal: How Chinese brands face the first real 'desi' threat

TIMESOFINDIA.COM | Jul 16, 2020, 15:05 IST

TIMESOFINDIA.COM

Google and Reliance Jio will work on an Android-based OS for affordable smartphones. Now, this could actually mean some challenge for established Chinese brands that have been ruling the roost in the country.

Among all the major announcements made by Reliance Industries chairman 

Mukesh Ambani

 at the company’s 43rd annual general meeting, the one that stands out is the deal with Google. Ambani announced that 

Google

 has picked up a stake in 

Reliance Jio

 for around Rs 33,000 crore. Google and Reliance Jio will work on an Android-based OS for affordable 

smartphones

. Now, this could actually mean some challenge for established Chinese brands that have been ruling the roost in the country.

Brands like 

Xiaomi

, 

Realme

, Oppo, Vivo have a strong presence in he entry-level market. In fact, Chinese brands dominate the space in terms of market share. While they have been making their presence felt in the mid-range and affordable premium space, the Chinese brands’ bread and butter remains affordable phones.

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This is where Jio’s partnership with Google could spice up things. Reliance Jio is known to offer products at really competitive prices and smartphones aren’t expected to be any different. The combination of Google and Jio could be an enticing proposition for many potential users. Not to forget the anti-China sentiment too could end up playing a crucial role.

Jio Platforms and Google have entered into a commercial agreement to jointly develop an entry-level affordable smartphone. The phone will be optimised presumably with Jio-specific apps and content. It will also have access to the Google Play Store.