Chip shortage pushes Reliance, Google to delay smartphone launch in India

BENGALURU, Sept. 10 (Reuters) – Indian conglomerate Reliance Industries (RELI.NS) has postponed the launch of a low-cost smartphone it is developing with Google (GOOGL.O) until November, citing a shortage of semiconductors sector-wide.

The “ultra-affordable” smartphone, jointly developed by the telecoms branch of Reliance and Google, was to be deployed from September 10.

Businesses around the world are tackling massive semiconductor shortage as the shift to remote working spurred by the COVID-19 pandemic has boosted demand for the critical component used in the manufacture of laptops and devices. phones. As a result, several car manufacturers have also suspended production.

“Both companies have started testing JioPhone Next with a limited number of users to refine it further and are actively working to make it more widely available in time for the Diwali holiday season,” Jio said in an exchange filing. Thursday evening.

The annual holiday season in India typically lasts 30 days, starting in October and ending with Diwali, set for November 4 of this year. Indians generally make expensive purchases, from jewelry to gadgets and cars around this time.

The extra time will also help alleviate the current global industry-wide semiconductor shortages, Jio added.

In June, when the phone was announced, Reliance chairman Mukesh Ambani did not specify its price, but said it would be the most affordable smartphone “not just in India, but in the world. “.

Jio disrupted the Indian telecommunications market in 2016 when it launched discounted data plans and free voice services, forcing several competitors out of the market. It is now India’s largest mobile operator with over 425 million customers.

Ambani also said in June that Jio, which counts Facebook (FB.O), Qualcomm (QCOM.O) and Intel (INTC.O) among its backers, was confident to be the first to launch 5G services in India. Read more

Reporting by Chandini Monnappa in Bengaluru; edited by Uttaresh.V

Our Standards: The Thomson Reuters Trust Principles.