After disrupting the telecom sector, Reliance Industries is now planning to foray into the smartphone market. The company is likely to acquire United Telelinks or sign a manufacturing deal for the same. This development comes after Reliance Jio received funding from 13 investors, including KKR, Google, and Facebook.
However, it seems the company is not done yet as it is still selling stakes in its retail arm. Besides, sources close to the development said that the company is likely to bring smartphones with bundle offers. This means that Reliance wants all 2G customers to shift or to migrate to the upcoming affordable 4G handsets. Earlier, the company used to offer similar bundled devices with contract manufacture Flex.
"There are many feature phone users who are waiting... to upgrade to a conventional smartphone... if only it were somehow more affordable. So, we have decided to address this challenge head-on. We believe we can design entry-level 4G or even 5G smartphone for a fraction of its current cost," Reliance Industries Chairman Mukesh Ambani said during its 43rd Annual General Meeting.
It seems that Reliance Industries also wants to take advantage of the government PLI scheme, but this move is expected to affect all Chinese handset makers as none of them is offering 4G handset under Rs. 4,000.
Everything You Should Know About Product Linked Incentive Scheme
The product Linked Incentive scheme aims to motivate all local manufacturing firms by giving them incentives so that they can expand their production in the country. Besides, it aims to attract foreign companies so that they can set up their plants or production lines.
The scheme is almost completed and 12 companies are likely to benefit from this, where seven will be local and five are international. The local companies list includes Dixon Technologies, Lava group, Micromax, United Telelinks, and Optiemus Infra, reports The Times of India. On the other hand, Samsung, Apple, Hon Hai, Foxconn, Rising Star, Pegatron, and Wistron.