The Business of Phones: Ind Vs China, Cost, Profit & Strategy | Ai+ Smartphone | FO374 Raj Shamani

0:28If you have a phone for 100 rupees, how much? for the explosive Тեխ points below 10 ,000 rupees. Why are we talking about the next golden era? It's India's whole world. There are 1200-15 million handsets. This is a whole scale. The biggest exports are China and Taiwan. If you buy both countries, they are total$900 billion. India is now sitting around$28-30 billion. If you transfer to$900 billion, if you transfer to 20 % of the same amount, then we will get less than$200 billion. The economy will only be made by exports. is the risk of being made. People, from their budget, do you buy a phone? Do you know that your phone has data, such as photos, chats, browser history, location, or your fingerprints, are selling in the market.

1:19Your phone, which is operating in the system, is not made in India. That is why your data is not secure and without consent to sell it. Today's guest is Madhav Seth, CEO of AI Plus Smartphone and Realme's former CEO, who has a Indian smartphone built in India. Today, we will know how to make a mobile phone. How to decide its price? What is the demand for Indian smartphone users? Why is everything in China? Why is a global scale now? Why is a brand for Indian smartphone? brand why did not come and a technology how can it start from business zero? And it's the fact that the features of 20 ,000-25 ,000 in the phone are made in India and 5 ,000 from the same time.

2:08And that's why the company stands for this that the world's best features are made to Indian users and the smartphones are launched on July 8th, 12.30 pm on Flipkart. Check out the link in the description This episode End to be sure to see this episode And tell me in the comments What have you learned from this episode

2:59What did you learn from me? What happened here? Japan was a technology country in 1950s and 1970s and 1980s where it was designed and R &Ds. But these technologies were built in 1970s because Japan started to be expensive in terms of labor so they changed the shop to China and Vietnam China and Vietnam was in that stage where they started assembling In 1970s and 1980s Government has pitched in and invested in R &D centers For companies to force JVs and local companies to JVs They started R &D to set up Technology transfer from Japan to China This was the same way to Japan to China Interesting and China has been assembled once and started to assemble China was always called as sweatshop China was not a labor loss before 2000 Sweatshop Basically, many brands have been allegations in US Apple and Nike They have used China as a sweatshop There was not labor loss It was 24 hours and 11 months in Chinese New York time holidays so 11-11 months non-stop work in factories in substandard conditions so that's why they were sweatshop and people started becoming skilled because they were all there and all companies trained to do how to make them and what they are After that, there were labor laws and things were expensive.

4:47But at the same time, government started to invest in R &D and Deep Tech.

4:54And local companies made JV and they made investments in the way that we can replace Japan for R &D. also nice so you know that you also know that we are not bothered because China knows that I have developed a supply chain that will be developed at least a decade so that you know that I have no replacement for decades if you do it everyone is saying China plus one strategy yeah so China has to be removed China plus one strategy which means that China replace the next decade It will be very difficult but yes technology transfer and technology know how transfer and human knowledge transfer is extremely important for every country and after covid all countries have realized that this is more important now world is not one so that is the reason I think 1970s was after China we have started taking the similar initiative what China started taking in 1970-1980 We started all in 2010 and 2012 It takes time It takes time But eventually The technology transfer phase Government is a catalyst Which is pushing But why will industry here Because industry is 80 % By Chinese Where will their loyalty be?

6:21China India Why would they try to even patch out that technology transfer to India until it is a force government force if we don't do it we will do business this is the way you have to do business government just like the lines are making business I tell you a little bit about China's skilled manpower and India's semi-skilled manpower cost difference I tell you technology cost it's one-fifth cost difference so China is expensive on manpower cost. If we think that China is less, China is not less but China is in economies of scale. Why is China less? Because of the negotiation power with the vendors.

7:05Where you will be brand, you will go and negotiate. If you talk about volumes, you will have economies of scale, then you will have cost. So, raw material is cheaper for them? Yes, raw material is cheaper. and then what happens is that once you have all the negotiations, you can also add factories and incentivize them. So there is also incentivization for local governments for certain industries like here, PLI benefits, there are PLI benefits. So these benefits are also giving them to Chinese companies to export and expand to the countries. Hence China has become extremely strong from last 20-30 years so it is not that it is not possible that it is not replaced but it will take some time but was there cultural difference cultural, I mean if you work in a Chinese company so what do you believe how does the working environment because I have heard that focus, discipline time you could see smallest employees the CEO everybody everybody is extremely focused and they work a lot that's more of a Japanese and Korean culture I have seen a smartphone ecosystem in Chinese I am not saying that they are not hard working they are very hard working like Indians also they are also very hard working they will also work for 12 hours, 14 hours, 15 hours very dedicated but they are extremely I would say They would like to work in a close group In silos They don't have their power Or they don't have their team Or they don't have their team At least I have talked about the smartphone industry Indians are practically puppets here They don't have authority Indians in India Indians in India They don't have authority Even the smallest of the decisions Including HR decision bhi china se ban ke india me atay hai yaha pe sir woh execution hotay toh saari jo chinese phone companies hai woh china se control kari india market bhi and idar ke joh bhi managerial positions on ki gujbhi ni hai unke managerial position ke pas authorities nahi hai to make a decision right that is the sad part give me one strength of a chinese company one strength of india one negative about chinese company one negative about india i think strength is they are very uh very focused razor focused on one thing that how do we make it happen very razor focused very sharp on making that things happen second good point is very fast on execution very fast execution I think this is what I think if you go to China then you will get solutions in the stadium if you go to the stadium then you will get solutions in the stadium which is true if you go to the technology field or China then you will get solutions in the field you will get immediately in the field So they are solution driven They are fast They are very fast On the execution side they are very fast One thing I mean general will tell Which I see as a weakness That their understanding of the local compliance Or either Their compliance is more concerned Or they don't understand Or they don't understand I am not sure about that Local means India compliance any country compliances any country compliances every country has their own compliances that if you have to work there it's one way to work so they don't understand that they are not bothered intent is to only make sure the business happens how it happens none of their concerns is none of their concerns and what is India's strength and what is India's weakness India's strength is manpower and I think in today's day government has been extremely good we consider as a strength Because government has been pushing really hard To make sure that this technology Transfer It has to happen Technology know-how transfer Because in India The ratio of skilled manpower Is a lot In India The community is a lot of In India It can become a big network And can become one of the biggest Export nation Of this particular commodity Which is a high value item This is one of the highest value items In terms of Revenue Hence I think it can become And I think if I see Currently those strengths One is the intent from the government Second is the human capital Which we have And here there is infra Which government is also providing In lot of benefit ways Government has PLI, DLI Land subsidies Government is really pushing to make sure That probably this thing happens in India And starts exporting from India And what is our weakness now?

12:03weakness is that we have no brands here in India there is no brands here basically we can scale this market which we have 5 lakh crore if I say market smartphones in 5 lakh crore 75 % of the market in terms of volume if you have 800 million handset 75 % 80 % of the volumes are done by Chinese smartphone brands so here there is no market no brands here here is Indian brands Intex, Lava, Micromax they disappeared in some way Lava is still there they have some challenges going on within the company but they are trying to figure out they are all Indian companies they are all Indian companies but they have ceased to exist over a period of time they were not able to scale it up the biggest reason is that nobody invested in deep tech which I have told you in the beginning China has met with local companies and they have invested in deep tech what did we do is that a white labeling brand Bana diya here Neither naming anyone We have white label We bring ODM products Which is the first step But if we have made that money If we have R &D centers And we have deep tech set up That your fundamental value Because it's a cost to the business So a lot of people think why we want to do it Branding on the market We import our brand and sell it But that is good to start But not a fundamental for a brand to continue and sustain over a period of time.

13:34So it is not wrong. But if we continue, we can't sustain. What happened? The ODM was supplied by the brands. The brands saw that our products are in India. If it's based, we will go directly to India. They were the ODM suppliers. So we will go directly to India. In 2014, when Modiji was gone, came to China. When Chinese companies said that we are now in India to transfer technology to India. So, in this 10 years, I think Indian brands have set our R &D set up, so that was the vision that we all know how to transfer technology to our technology. Let's pause for a bit and then you understand me that 2014 what happened?

14:19How did they enter? How did they get the money? What was the strategy? How did they come to China? How did they come to India and how did they come to China? In 2014, In 2014, Modi ji opened for the electronic industry Once he came into power, he had a very sharp vision That electronic industry is the future Which he was right, extremely precise That electronic industry is the future And if there is a hardware export along with the software Then it becomes one of the biggest industries over a period of time They also know that they need to invest in it need to be done. So they gave them some leave-aways to foreign companies in India to set up for the companies.

15:00The leave-aways have been considered as a loophole by these companies. So they said that we open them, come and learn, with us and with us, we have a friend and with us in joint venture. In joint venture, we did not have a proposal, we had 100 % allowed. Back in 2014, we had 100 % Chinese companies in India allowed. But people hired here, do anything? No, nothing was not. You transfer the technology. Okay. Because the Biden for State we also think that you go local so you hire local. This also didn't know that you also take the logistics of Chinese. To end my logistics to Chinese companies. I didn't know that we have moving jumps.

15:41One step at a time. We opened that you have 100 % in our country. Then what happened? 100 % you have given them land subsidies. and they told them to build land here so that UP became the hub and we started to put it in NOIDA so when we started factories from there there was an assembly that started to work kids came out and then there was assembly that started to work back to 2017-2018 there was assembly here because government 5-10 years of vision that this will be a localization of the company But in 2018, 2019, we know that India has not been a tax benefit in 1-Rupiah India's demand consumption has been used In India, there are 1.500 million smartphones in India There are 1.700 million Chinese phones in India But India's not a benefit in this So if India's benefit is not a benefit, the government started asking questions What are you doing for India?

16:44Not only you have income tax for 1-Rupey So, the point of transfer pricing is also coming to you How do you transfer pricing? There is transparency of the accounting systems Everything started to come and see When the government started intervening on the compliances The government was never against any Chinese companies Let me be very precise The government was very clear that you have to work through compliance You gave 5 years of leave way to open up the loophole and use it to make sure that you have to transfer in India technology and technology know how to transfer it. Coming back to 2023, they didn't have a tax tax.

17:24When the government pushed that you didn't have a tax tax, they started showing books profitable. It was only after the push. But nobody knew that. So how did they sell a 100 million? Exactly. In 2014 when they came, they knew that basically they were a manufacturer of an odium. So they had a profitability in their own. In India they knew that brands also have a profitability, keep margin, keep margin. They have the margin zeroed here and invest in marketing. But the profitability of China was never hit. hit not hit. So, phone manufacturing hit not hit. What was the profit in India? They had zero and put it in marketing and invest in marketing.

18:17Put it in branding and bought it. In fact, petrol pumps and toilets and so deep level that they went to marketing and they took off-line marketing from the holding of the holding. Promoter strength, 40-40 ,000 promoters shops, retailers incentivized higher incentives, foreign trips. After doing this, when you start doing this, you will start giving higher margins. So I think that is how the market started shaping up. So from a small poster and Indian cricket team, they all have to get all the money from all If you go to the shop, you have to go to the conversion and the promoters. Retailers have to incentivize.

19:02And the shop has changed. The shop has given the boards for changing the boards. You can keep your board with your own. So, here we have to look at the branding. The smallest of the touch points, they have to invest in all the places. To ensure that there is probably visibility. If you have to keep so much visibility, will be there. You will see everything. Everything will be there. A small poster from the toilet goes into the man who is also watching cricket match. Who is also watching who is also watching in the shop who is watching phone who is also watching. So, when the year was at peak when India was seen they were only ads like 4-0 and blue and green painted on their faces.

19:44how much money will be on branding and marketing? Cricket team itself has been sold in 1200 crores and they have sold and apart from that they will be definitely doing another spend of another 200-300 crore rupees for sure so 1500 to 2000 crore rupees i'm talking about the peak time definitely per year uh cricket team was for five years so probably you can spend it so at least i would say that thousand crore rupees a year is what they were spending on marketing right they were spending just on marketing just on marketing it's not turnover not how many indian brands of smartphone cards now this is like China has made an ecosystem, a whole big ecosystem has made components, technology, brand of globally, spending money, because they have pulled in all of these.

20:31Now, after all, what gaps do you see where an Indian company has an advantage? Or which thing is probably not in their mind, what are the loopholes or the gaps, which is an opportunity for Indians, Indian companies, Indian entrepreneurs. See India is still a scalability option. India is still in that stage that was in China in 2000-2010. Explain, why do you say that? In terms of global expansion, in terms of manpower cost, capital cost, China has incentivized the government, in 2000 or in 1990 or 2000. start to get the labor skills, semi-skills skill to get the transition in India now. So India has the scope the manpower cost, I have told you about starting versus China we have one-fifth cost, but one-fifth cost their production double because their capability has and they definitely invest in robotics and automation so their potential and capabilities are increasing while India is right now started doing it.

21:45So India in India there is a scope. And not that they have that scope. They are constantly watching us. But India there is a potential to scale it up globally from India also. And that is what I see as an opportunity in India. That we were where we were in 2010 or 2015 we were there. Can you explain macro trends? Economics and all this. Explain to me what similarities are from macro point of view, consumption point of view, GDP point of view, we are sitting here today, why are we talking about this next golden era? I am telling you a simple math. The whole world has 1500 million handsets. The whole world has 1500 million handsets.

22:33The biggest exports are the biggest value-wise. China and Taiwan If you have two countries If you have to pick up Then total 900 billion dollar Export 900 billion 900 billion dollar Export India Around 28-30 billion dollar Export Export Now you have to Put the match That India How much potential Is it Basically You have a jump But basically If you have 900 billion If you have 20 % Transfer Over a period Of next 5 years Then we have Come and come We have 180-200 billion dollar economy, only exports can be made. How do we make it? Because we have so fast and better. So, we have so much infrastructure.

23:19Cheaper. All of these are economies of scale. How do we make it? It's not about how to make it. How do we make it? I mean, we make it. We make it. We make it. I think we make it. But that is not the point. If I talk about business trends, if I talk about numbers, I generally tell you, we have started investing in EMS facilities now we have started investing component ecosystem EMS what is happening electronic manufacturing services which means assembly so in India it has become very thick maybe Foxconn or Dixon and many EMS partners have come to invest which is called Apple or other brands which is assembled in India now the government has latest component ecosystems PLI is a production link incentive announced PLI benefits which will lead components if you have 3 ,000 components for making smartphones then how many components are made in India government has made PLI scheme I think multiple companies will be in India which will be made in India and if you assemble it, it will become a value chain.

24:40So the most important thing is how you have to bring value chain. If you have EMS facility, EMS facility value chain is 2-3 % value chain. It is also a component ecosystem, fabrication and design. Design is a deep tech. Design, fabrication, components and EMS. So, to bring the whole ecosystem That is what the government is trying Hence, I believe that the government Is pushing a lot of incentivizes Which will lead to another Push into exports also Now, when we have a lot of Services will be taken over by AI I think the next big focus What we should be doing It is on the hardware exports And the software exports coming down from India From the revenue of this particular Smartphones Because it is a big industry Electronic exports is one of the biggest industries in the world Just coming to one more data, consumption economy is also in India India is not just an export or a cheaper manpower economy, India is a consumption economy Local consumption is also in our daily 1.500 million handset Like China has incentivized, because the US has put sanctions on the electronic exports sanctions on the market.

25:58So China has to increase its consumption for every individual replacement on electronics. Which means that no consumer wants to replace their own thing. It may be TV, fridge, smartphones, anything. 500 RMB which is roughly around 6 ,000 rupees subsidy. So it's 6 ,000 rupees off. 6 ,000 rupees off from the government side only reason because they knew that this sanctions are sanctions so government protect their industries to protect their industries to protect their own consumption and they need to do their own and they need to do their own because in India already local consumption and penetration is very low and penetration is very low so in India in the metro there will be ratio of 2 smartphones but if I talk about tier 2 to tier 4 then now penetration is only 40 to 50 % and max 60 % So now we have a great scope of smartphone penetration And from feature phones, today we have 50 million feature phones every year If you have a trading brand in your economy, if you have a trading brand, you can't survive You can't sell a celebrity, but you can't sell a sustainable But we don't have a sustainable, because if you have deep tech R &D, you don't have supply chain So you don't have the control of the value chain So you don't sustain it In 2017 I joined How much of its product was it?

27:29In 2017 I started the brand Realme I established the brand I had established everything I had done And I had set up from India The only best thing about it is Yes I focused on GTM Product was R &D Because of that Scalability And something fast So in 2023 How much revenue In 2023 I had exit We were doing 20 crore Around 18 15 to 18 million And 20 crore revenue Top line Only Realme Insane Okay So when you were hired What mandate Was your first meeting You were like Look This is your product This is Realme This is price point what do they say how does your meeting go I was in OPPO I had online sales I was there so when I was there because OPPO predominantly being an offline brand which was a promotion if you were online you have to have a razor sharp pricing focus and targeting so when this happened basically a lot of offline dealers used to complain about the online pricing this is how the trade happens so at the same time I proposed why not to develop an online brand because there was a white space because only Xiaomi was online which was online in 2017 and there was no other brand from BBK BBK never used to be an online company so I said I proposed that why not I create an online brand you give me a product I will do it so that's how I started to their OPPO India CEO at that point of time and he was Indian or no he was a Chinese Okay He was a Chinese His guy Which is now Realme's CEO Okay So he very well understood that Yes there's a challenge that You know probably offline May say If we online He understood that point There was a challenge And he understood The white space behind it So I was the first employee For Realme by the way Basically He was the first Which I started From the OPPO's room OPPO's office I built a room I built a war room And there I built 10 men I started realme from there Nice So scalability I understood And after once the product got successful Then realme company formed Then we did sale on Oppo's books So it was an R &D On played on me Succeeded Then company and separation Formed that an online brand Establish So you went to your online brand Now what happened What did they say, go ahead, send it, send it, this is the budget?

30:17How does it go? What stages are they? So, it was very clear that they had a product which they were supposed to, I would say, they were supposed to discard Oppo's product, which they were supposed to discard it. But online, MediaTek chipsets were not famous. But I was told, because I'm a media product guy, so I understand the product, I have told you that consumers understand and the consumer's psyche is something that I always focus on. I have understood that they need performance. Consumers don't compromise performance in a price budget. They need to compromise performance. They need to compromise performance.

31:02If they can play gaming, they can play. So I know that MediaTek was a chipset But they were never able to establish themselves online Because it was only in Qualcomm online I was the first one to launch P60 chipset I was the first time I launched P60 P60 online And it became a super hit overnight After that, all the series started to launch P60s But that's how the story started about This smart phones And that was a phone Which was supposed to be Discarded by OPPO Stating that probably It won't work in offline market I said give it to me I believe it's a potential It will be online I will be online Just give it to me Completely this product Designs and everything I'll put it under My brand name Which I want to establish Which is Realme And I'll start it from there That's how it That's how it started So Realme 1 was that product If you see Realme 1 dhekho ghe to us mein oppo ka bhi logo tha or realme ka bhi logo so ye to step one ab kaha pere inflection point hoya ki aap kya paisa di aapko bhoot ki go do marketing no i was never given that sir b-sar koro'de kase b-sar koro'de kase b-sar koro'de kase b-sar koro'de kase marketing ki zrabat ne aapko intent ki zrabat hai intent mein kase me aapko eek chis patata b-sar koro'de mein meinne online partnerships like flipkart hai they had supported us in this journey a lot and they are very good in establishing their brand so no they also wanted a replacement of the brand let me put it that way they wanted a replacement because one brand was trying to arm twist them so they wanted to have a replacement of that brand so we are with two people so that they don't have one so they wanted a replacement of a top brand where they did not want to make money but they were okay with working at 0-0 they are working at minus now they are ready to work at zero for me it is an opportunity for you it is a very big opportunity my cost became zero online selling cost is zero but delivery charges are going to increase everything is zero Flipkart supported us in doing that that's what I am saying wow Flipkart supported this brand so online cost of listing of a supply chain everything they commission of a marketplace sub zero sub zero okay That was back in 2018.

33:32He's not doing it. He's going to become a vehement. He's doing it for someone. But he still supports. While AI plus smartphones I'm launching because of his feedback only. And the white space they also figured out. So they are extremely good. They are more human when I have seen that. And they understand that what is required to build a brand. They have always been more human rather than being more robotic. I would say that. Got it. That's how it is. They have done it. You started it. Yeah. So my cost becomes zero. And Flipkart which traffic comes to the platform every day would be in millions maybe hundreds of millions.

34:10So they have the product banners starting everything they have done that was free that was free that was free what are you talking about? I'm talking back in 2018 so they have done everything everything everything everything everything everything so they were so much so much like Like Flipkart, I was looking at it all. Because it was the intent of Flipkart. That's how it is. Pretty interesting. That's what you meant by that you'll see other things. It's more about the partnerships and intent of the white space. I've seen it in that. I told you that you have to understand what is the pain point of your buyer.

34:54If you're able to address that pain point, it'll be home. Nice So 00 Vistar Do an online push Including marketing Millions of people I would say Thanks for him That he included He made a brand TVCs He made Newspaper ads Everything he did For us Right And At that point of time To establish a brand So they were so supportive In doing that And I think That is what I believe That you know That made actually The fundamental ground For the brand Realme in India Pretty sick pretty sick so never your boardroom is not like you want to make this a brand maybe COVID times post COVID you know there's a there's a very thin line between need and greed when someone starts supporting you so much the boardroom turns to greed rather than the need rather than taking it as a favor which we have to return someday we start expecting as a fundamental right

36:00so that should not be the case that is not my value system when I work with anyone because

36:09you have to pay for it today or tomorrow you have to pay it back again

36:17nothing is free just say if you watch apps on the phone no one is free they may be giving you for free But they are taking A hell lot of data from it Yeah But Just coming to that particular point Which I know that The basic fundamental value Is that if they are supporting you Then you have to stick to them Through thick and thin Then you can't look Be more opportunistic Then it has to be more strategic There's a difference Between opportunistic And strategic Strategic is like That both of you are sitting in thick and thin Agreed Opportunistic is like If you can't sell this Then you can sell it So that is the difference I believe the value systems are different but you said that a lot of Chinese companies believe in transactional relationship which is opportunistic so that was strategic so it was a fight or in your boardroom where you were like that my they have given me so much so if they are going to work I will give them I will not sell them I will sell them I will sell them I will sell them I will sell them there was a lot of pushback because as I said there is a very thin line between need and greed your need if you cross cross-corporated, then you can convert your greed.

37:27If I have a smartphone with 10-12 million, if I have a smartphone with 14 million flipkart, I have a flipkart with 14 million flipkart. Flipkart was the highest GMV grosser for 2 years, continuously. Minimum we would have done at least$2 billion on flipkart, every year for continuously 2-3 years. 12-14 ,000 croda, so that's about 70 ,000 croda. You said that 14 ,000 croda, we were doing flipkart. Flipkart is our thing. So that's how Tell me a point Where do you need to pay back I'm out of real me

38:08What happened? Why did you leave it? No it's nothing What happened? It was See technically yes I left the company But it was Difference of opinions What they thought is Partnership Or anybody would think Partnership is transferable it's not human it's transferable it's a transactional thing this is how they think hence I said understanding culture is very important they don't understand that India heartlet relationship based relationship based country and here it's like that's how it is now they are out of top 5 right or maybe around 5 they were number 1 they were number 1 and number 2 right and they are now maybe around five or six so uh they have to i'm not talking only about real me but i think in understanding the local culture we was doing a great job and they're spending a lot of money so it's another chinese company but they understand better again but at the same time what i said is just because i asked about me hence i said it is all about short-term and long-term understanding of short-term losses and long-term gains what is more important i'll tell you my example so when I talk to my friends with my friends same short term long term when they do business or something they see how much money is so take it when it comes to me I look at 10-15 years my relationship matters when I enter any business I think that 9 years I don't have to earn 10 years I don't have to earn 10 years that 9 years will go out my relationship will be maintained in on the day one when I was a small distributor or a person gave me 100 rupees support so I for 10 years when I say 1000 I will repay that is a moral way of thinking so that's a very businessman kind of thinking in India you talk about business families mainly you father dad dad kaka chacha I learned this from my father same way he has filled this in his mind that relationship over everything you have to lose and lose and lose to earn money, it's okay.

40:21Where does it come from you? Because you're not from a business family. My father being a banker, he has a very strong value system. So he taught you? It's a very clear thing, right? That you don't earn it but don't take a dollar to the house. Yeah. Now you repay it. Okay. What's your focus now? You said you've got a product but you've worked in those companies and you've got a lot of marketing. Yes. But I was the one who always used to make can fight for the products in realme also okay kon sa product lana hai kabi lana hai kase lana hai definitely there were a lot of intels because flipkart being a huge their huge database they used to support us not only flipkart but when we started amazon so they used to support us with a huge database also ke consumers intent ka hai consumers kon se taraf jaha hai kya karna chahi kase karna chahi hai understanding consumer psyche through data was one of the key aspect for us.

41:15The colors, which are their preferences? Tell us about what consumers like in India. Look, in India, I'm talking about 2017, 2018, they were looking for more vibrant phones with better performances. At that time, color was not the preference. Right now when the hardware, the commoditized is now, because it's a commodity because it's a commodity, now the differentiation point has become the OS and the designs. Because the rest of the hardware is the same. in hardware no one can differentiate because the chipsets camera battery everything is going to remain the same product build good because you have got 2-3 years warranty so every product is same it's just a branding level difference right and understanding i have a lot of consumers when i talk about a good product because it's a good product for it but while the same hardware like I said that all products are one brand only different names so the products are same the quality is same it's just a different channel different marketing different way of perceptions building for the consumers that is how they are charging the prices so how do you beat today it's become a lot of open market you will bring a camera in all phones you will bring a great phone phone la do que wou sub phones performance her phone دکھنے میں کونسی screen کونسا feature سب ہر جگہ available کونسے colors چاہیے probably وہ بھی available ہے ٹھیک تو ہر چیز ہر brand میں سب دور available تو ایسے time پہ کیا differentiator لے کے آتے ہو see differentiator سب سے پہلی important بات ہے میرے لیے differentiator سے زیادہ ایک سب سے بڑی مطب اگر میں آپ کو بتاؤ تو ایسے یہ ہے plus brand جو smartphone brand میں launch کرنے جا رہا ہوں Deep tech R &D Hence I want to keep That investment separate As a deep tech R &D That I have to do it But at the same time I have to do it Which is Definitely I would need A lot of the supply chain Coming down Into picture Which would be Still imported from China, Taiwan, US Anywhere from the world Yes So now It will take another 5-7 years Where the whole Component ecosystem Will come with all The catalyst being Government and the Industry There is no Industry player Hence I say Probably It's more about Government pushing But there's no Industry taking initiative Because their Loyalties will always Be at the point Where they are The companies The original The companies So there will be The loyalty That's how it is So I think The differentiation Point at this point Of time First of all I have told you That In the market There is a White space White space I have seen Which white space What spaces If I have to say Say for example 4G is a white space India is a big white space Mass adoption of democratization Of technology is a white space Like I have told you that Chinese Want to sell high ASP phones There's a reason because That's where they can spend more They can also earn more They want to sell their phones How can you democratize technology That is one way of me giving back to the society That I'm giving back to society How can I democratize this particular technology Because hardware is the same How can I democratize this First of all hardware And make sure that probably is In every Indian hands And making sure that probably is similar quality Rather than paying the higher EMIs or everything as such Point number 2 The biggest thing which I believe Because consumers may not be Focused on But this is always a survey In 2021-2022 that you will choose convenience or security people will always choose convenience people will not like it but they will always choose convenience but how come I make sure that their convenience compromise and security as an added non-stop backend feature which gives them a comfort and peace of mind that is what I am trying to do with AI Plus which even if Chinese brands don't think about it And if you say that for marketing That does not make sense for them So as if It is one of the prime important thing Because if you see that today The biggest warfare Would be on data over a period of time So if you can control your data That is going to be one of the most important aspects Of me thinking Alongside with the government How can we contribute it As I said that government with industry contribute and initiative but why would the older companies do it they have no reasons until the law is applicable until there is no pain so with AI plus smartphones I want to take that initiative how can I build that firewall because I know there are many particular data that go out in the sense of not on purpose but in a multiple way product development performance development performance check marketing activities and monetization so now this data is so spread that you don't know how to use that data so how can we start building that particular firewalls around data in India because if you understand every phone has fingerprint sensor you have biometrics every phone has biometrics but biometrics if you have hardware if you have biometrics if that data gave someone to someone how will you control it but what will happen when we were talking to you before this you said India data is using India data every day we are giving we are smart but we are not our data it is China it is US it is other countries so which data you are talking about every data which you just said ki biometrics hai wou indians ka data hai haa joh indians ka data hai wou indians ka nii hai haa means indians bahar bech raha bech raha hai right so indians ka data hai joh bhaar jah raha haa haa toh kya hota isse bech raha means indian companies bech raha hai nah indian companies marketing companies bech reggie for whatever reasons right marketing companies retargeting ke lihe bech reggie performance marketing ke lihe bech reggie and that data can be used for multiple reasons aah kya problem hooggi agar my data bhaar gaya abh eek logical samaj ye aakar aapka which is retina displays or if there is any biometrics if there is a personal data we tell us telemetrics that basically if you have battery health of your phone you also know what you are using and how you are using your app tracking more than 50-60 % of the apps which are for free they all take data and use it and that is one of the biggest risk Unauthorized way Use You

48:37Without

48:41Consent Using Your Data That's What I Say Unauthorized With Consent Using Your Data For Marketing Purpose Is One Of The Ways Marketing Companies India What The Data If you have a global company targeting to sell their products, you are targeting without that you will not do retargeting without that. So that is the way which I believe that if the data is going out, what is the risk behind it? India has already formed an act which is DPDP Act and I think Data Protection Act which is already in place from August 2023 which is yet to be implemented in scale but at the same time in this all, you have to contribute to the industry because data is out of multiple levels there is an OS level there is a second layer which is what happens and what you push data in apps that is also one of the biggest things because without consent we don't know how to use it so it is more about transparency rather than how you use it so I have to use it

49:52I want to create a dashboard on the scale that you can use the data, how to use the data, how to use the data, how to use the data, how to use the data, if you give concern, then you can give concern. Will this feature on your phone? This is a dashboard in the dashboard The background is going to be I am showing them in the foreground Which is more transparent to the consumers How are you using data Who is taking the app And where is it going Is that a feature now? Is that a feature which I am launching Nice That is going to be a transparent Which is for me is a transparent It is on the back end I am just trying to bring it to the foreground So I can see which apps I have used Which data is going on Where are you going on Your voice Your messages Your calls And how are you going on And then can I use that button And then I can off You can go to the settings And you can change it With consent That I don't want to share Or don't do it So it is more about consent And you knowing Knowledge Consent And a transparent way Of using your data That is what I am trying To figure it out so now I see my phone in my phone so I track what I am doing to which website I am looking at which product I am listening to my voice like if you talk about phone to me I am using my phone so my voice also my location use I go to another country so automatically this is being used on the background sometimes camera but let's say I don't know cameras cameras bhi hoti ya your gallery's bhi ho jati ya your messages bhi hoti ya my gallery's my messages sabka consent de diya mujhe pata nii you have consent de diya kyunki app free hai toh aap nai download kar liya on your phone ai plus pe yye mujhe widget pe samanye dik jayega ki voice ye wali use karri apps camera te rhi ye wali use karri that is what I am trying to do it as a transparent way of doing things right so aapko transparent raha that your data is going to go where is.