Reliance jio played very smart when they planned to enter into 4G services in India. Reliance single vision was to develop complete ecosystem so that they make money from one or another services, platforms, Application or Devices.
Reliance jio launched low to medium range LYF brand year back basis on the well known buying trend of Smartphone segment.
Indian users immediately jumped on and started grabbing LYF Smartphone given the standard specifications coupled with very competitive price. Reliance jio went ballistic with LYF brand building while they were preparing for 4G service launch.
LYF smartphone kept single moto of releasing new feature set based smartphone on regular basis to communicate that they are serious about their business. They used Reliance industries owned Reliance digital and started selling their device before going for broader retail model.
The move by LYF brand dented many established brands in India operating with a price range of $50 to $185.
Then overwhelming response by end Smartphone buyers encouraged LYF smartphone brand to go for an disruptive model.
Once Reliance jio launched their 4G service with free service till 31st Dec 2016 and placed Flame,Wind & other lines of Smartphone under the plan.
As Reliance jio announced that they acquired 16 million subscriber post launching their service indicates good news for LYF brand.
Basis the number it is clear that LYF Smartphone brand must have snatched market share from the competitor. I am expecting that Reliance Jio owned LYF Smartphone brand will gain respectful market share in Q3 and Q4 of FY 17.
I won't be surprised that if they come into top 5 Smartphone player in India.
It is really interesting to see that how Reliance jio is playing their tactical move to ensure revenue generation from devices whereas offering free services to end user.
In my point of view, LYF brand user will be helping Reliance jio to reduce losses as attached service to device margin will start generating revenue for the organization.
In my point of view, the huge adoption of Reliance jio 4G service may change the dynamics of Smartphone segment of India completely. I wrote an article earlier about the Smartphone market share of India and unfortunately some of the respected players raised finger on my assessment and I strongly believe that the release of device shipment during Q3 FY 17 as well as ongoing Oct-Dec 2016 quarter will prove me right.
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