Festive season discount: Reliance slashes JioPhone price to Rs699 from Rs 1,500 to revive sales

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Updated: October 2, 2019 3:09:26 AM

According to Counterpoint Research, Jio Phone’s market share in the feature phone segment declined to 28% in April-June 2019. This is its third straight quarter of loss.

The savings of Rs 800 on JioPhone and Rs 700 worth of data totals to a massive benefit of Rs 1,500 on every JioPhone, it added.

Reliance Industries (RIL) on Tuesday announced a one-time festival season offer for the JioPhone, under which consumers can now purchase the handset for Rs 699 against its original price of Rs 1,500. It is also offering 4G data worth Rs 700 free with the phone. Through the offer, the company is eyeing to revive the sales of its 4G feature phone, which has been losing market share consistently for the past three quarters. It has so far sold 70 million units.

“During the festive season of Dussehra and Diwali, Jio is making the JioPhone available for a special price of only Rs 699 as against the current price of Rs 1,500. This is a clear saving of over Rs 800 without any special conditions like having to exchange your old phone. This price is far lower than many of the current 2G feature phones in the market,” Reliance Jio Infocomm said.

For JioPhone customers who join through the Diwali offer, the company will offer data benefits valued at Rs 700. For the first seven recharges that a customer does, Jio will additionally add Rs 99 worth of data. The savings of Rs 800 on JioPhone and Rs 700 worth of data totals to a massive benefit of Rs 1,500 on every JioPhone, it added.

Since July 2017, JioPhone has sold close to 70 million handsets. Its demand shot up due to the compelling value proposition. In July 2018, it got a 66% price cut and was sold in market at Rs 501 through the Monsoon Hungama scheme. The price cut led to a higher monthly subscriber addition. While earlier it used to be around 6-7 million per month, it later went to 10-12 million subscribers a month with half coming from Jio Phone.

Now through the more than 50% price cut on the VoLTE-enabled feature phone, Reliance besides reviving flagging JioPhone sales also wants to tap the 350 million-strong 2G subscribers, who are still using feature phones.

The company is also trying to claw back its lost market share from rivals such as Samsung, Lava and iTel, who were able to capture market share in the sub-Rs 1,000 segment during the April-June 2019 quarter.

According to Counterpoint Research, Jio Phone’s market share in the feature phone segment declined to 28% in April-June 2019. This is its third straight quarter of loss.

The company controlled a market share of 30% in Q1 2019 and 38% in October-December 2018. During the April-June quarter, it commanded 47% of the feature phone market in the country, its highest so far.

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