Business
Reliance-Google smartphone deal in India threatens Chinese firms
NEW DELHI (Reuters) – A $4.5 billion deal under which Alphabet’s (GOOGL.O) Google will collaborate with India’s Reliance Industries (RELI.NS) on a new smartphone likely heralds a big shake-up for the world’s second-largest mobile market, industry executives and analysts say.
Reliance boss Mukesh Ambani, announcing the partnership at his company’s annual meeting last week, said Google would build an Android operating system (OS) to power a low-cost “4G or even 5G” smartphone that Reliance would design.
The new phone is set to pose a major challenge to Chinese vendors such as Xiaomi (1810.HK) and BBK Electronics, owner of the Realme, Oppo and Vivo brands, which currently dominate a $2 billion market for sub-$100 smartphones in India.
Powered by a clever mix of Bollywood, cricket-driven marketing and product features such as powerful cameras, the Chinese firms sell roughly eight of every 10 smartphones in the country.
“If history is anything to go by, Reliance will undercut other brands and pose a real threat to the low-end smartphone market,” said Rushabh Doshi of tech researcher Canalys.
Reliance executed a similar plan in 2017 with the launch of the JioPhone, a no-frills device that gave users internet access for as little as $20. JioPhone now has more 100 million users, many of whom are internet first-timers.
“They (the Chinese players) are likely to cut their price to compete and their margins could shrink,” said A Gururaj, the former India head of contract manufacturers Wistron (3231.TW) and Flextronics. “I see the Google-Jio phone as a big hit.”
Reliance’s ambition to hand a smartphone to every Indian could also win subscribers from telecoms rivals Vodafone Idea (VODA.NS) and Bharti Airtel, who still have hundreds of millions of users with old-style feature phones on basic 2G networks.
Realme declined to comment. Reliance, Xiaomi, Oppo and Vivo did not respond to requests for comment.
Vodafone Idea and Bharti Airtel did not immediately respond to requests for comment.
Content is king
The alliance will see Google invest $4.5 billion in Reliance’s digital unit, which houses telecoms and fibre businesses as well as music and movie apps.
Jio Platforms has also since April won the backing of global financial and tech investors including Intel (INTC.O) and Qualcomm (QCOM.O), which could bolster its smartphone ambitions.
While Reliance has given no details on the specifications or price of the new smartphone, the timing of its launch, or who might build it, the Jio network’s 387 million subscribers and the Google brand name will give it a big leg up.
The Reliance-Google phone would likely be optimised for the Jio network and offer users improved performance, said Arvind Vohra, a tech consultant and the former India head of China’s Gionee.
Just as important are the possibilities for bundling Jio’s massive video and music libraries with the phone. Google’s Android team also aims to ensure access to apps related to health, communications and jobs, and ease of use for first time smartphone owners, Sameer Samat, vice president for Android and Play at Google, told Reuters.
That kind of packaging could help woo roughly 350 million Indians who still use basic, non-touch phones and are yet to taste high-speed mobile data on fancier devices.
“This will help users choose a device for its software and bundled content rather than just specs alone,” said Vohra.
The collaboration with Google could also set the stage for further partnerships between smartphone makers and Reliance to make devices specifically for the Jio telecoms network, said analysts.
Some Jio customers are already making plans to upgrade to the Reliance-Google smartphone when it hits the market.
“I’d like to try the new Reliance smartphone and since I’m already a Jio customer my first preference will be to remain with the network,” said Rawil Ansari, a construction worker from a village in India’s eastern Bihar state, who has been using a JioPhone for the past two years.
Reporting and photo: Reuters
Maldives on Thursday welcomed the one millionth tourist to visit this year.
The one millionth tourist is a Thai named Sutapa Amonwivat, who arrived from Singapore with her husband and two children. This is her second visit to Maldives.
Maldives Marketing and Public Relations Corporation (MMPRC) and the Ministry of Tourism gave a warm welcome to Sutapa at the Velana International Airport (VIA) Thursday afternoon. She was welcomed at the VIA by tourism minister Ibrahim Faisal, MMPRC Managing Director Ibrahim Shiury and senior officials of various relevant agencies.
After welcoming her with traditional offerings, she was presented with various gifts by the ministry, MMPRC, customs, immigration, Maldives Association of Travel Agents and Tour Operators (MATATO) and Trans Maldivian Airways (TMA).
Maldives reached one million tourists in June, three weeks earlier than last year. The number of tourists reached one million on July 16, 2023.
Maldives expects to reach 2 million tourists this year.
Chongqing Airlines on Monday began its inaugural flights to Maldives.
The Chongqing-Male route, scheduled three times a week, is expected to strengthen the bonds between China and the Maldives, opening up exciting new opportunities for tourism and cultural exchange.
The inaugural flight was welcomed upon its arrival at Velana International Airport (VIA) in Maldives, where local officials and tourism representatives expressed their enthusiasm for this new development.
“We warmly welcome our friends from China to our beautiful islands. This new connection strengthens our bonds and opens up new opportunities for tourism,” the tourism ministry said on X.
Maldives currently welcomes four airlines from China, including China Eastern, Beijing Capital Airlines, Xiamen Airlines.
In January, Maldives government urged tourism stakeholders in both Maldives and China to ramp up efforts to restore China’s position as the primary source market for Maldives tourism, a status held before the onset of Covid-19.
China, being the largest source market for Maldives tourism before the pandemic, saw a resumption of tourist arrivals from January 2023 after a three-year hiatus due to the pandemic. In 2023, the Maldives welcomed 187,118 Chinese tourists, marking a significant recovery in numbers. This year, the Maldives has welcomed the most number of tourists from China, with over 107,940 or 11.5 percent of total arrivals by June 12.
CROSSROADS Maldives has introduced WeChat Pay, widely known as Weixin Pay in China, across its world-class resorts, SAii Lagoon Maldives, Curio Collection by Hilton, and Hard Rock Hotel Maldives. This payment option is made available to enhance the convenience and overall experience for guests from China, making their stay in the Maldives more enjoyable and hassle-free.
Understanding the needs of the diverse guests, CROSSROADS Maldives has integrated WeChat Pay into operations, allowing guests from China to easily and securely conduct transactions using a payment method familiar to them. The introduction of WeChat Pay is a testament to CROSSROADS Maldives’ dedication to enhancing guest satisfaction by offering exceptional experiences at every turn. What is also expected through this initiative is that the guests could benefit from better foreign exchange rates, translating to better savings on their expenditures during their stay.
The option is available for guests in-house conveniently at both resorts as well as across the Marina at CROSSROADS Maldives where a wider variety of unparalleled dining and retail experiences are available for all guests. The day visitors from China will also therefore equally benefit from this new introduction at the Maldives’ premier multi-island integrated leisure destination.
SAii Lagoon Maldives, Curio Collection by Hilton, is a vibrant tropical escape that offers unique and locally inspired experiences. The resort features spacious rooms and villas, a variety of dining options, and an array of recreational activities designed to cater to the desires of modern travellers. Guests can escape to the island’s SAiisational natural beauty, enjoy water sports, and indulge in spa treatments, all while relishing the personalised service that defines Hilton’s Curio Collection.
Hard Rock Hotel Maldives brings the iconic Hard Rock spirit to the tranquil shores of the Maldives. This family-friendly resort offers a perfect blend of relaxation and entertainment, featuring music-inspired experiences, live performances, and the brand’s signature amenities. With luxurious accommodations, diverse dining options, and a plethora of activities for all ages, Hard Rock Hotel Maldives ensures an unforgettable holiday experience for every guest.
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