RIL-Samsung deal to offer affordable 4G devices reportedly stalled over differences on pricing


Earlier this year, Reliance Industries (RIL) and Samsung were said to be in talks to launch affordable 4G-enabled devices in India for the formers upcoming Jio Infocomm 4G network. Now, ET reports that the deal has hit a massive roadblock due to differences regarding the pricing of the aforementioned devices.

The report says that Samsung isn’t pleased with Reliance’s plans to offer each handset at Rs 5,500 and wants them priced at a minimum of Rs 8,500 instead. In addition to the revised price, the South Korean company also wants RIL to buy at least 3 million handsets at a time to make this entire deal feasible. In case RIL doesn’t buy as many handsets then Samsung will want each handset to be priced at Rs 11,000. The report further mentions that since talks have stalled, RIL is also believed to have begun talks for a similar deal with Chinese mobile maker Huawei.

Since the beginning of this year, RIL and Samsung have been in talks to offer entry-level 4G smartphones priced as low as Rs 5,500 along with RIL’s voice and high-speed Internet services via Jio Infocomm. In addition to the affordable handsets, Reliance also plans on offering data packages starting at a minimum of Rs 100 along with EMI-based sales models with zero percent interest rates. This entire deal was said to be worth Rs 1,500 crore, which would increase to a whopping Rs 2,500 crore if Reliance were to buy 3 million handsets at Samsung’s price.

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