As memory chip prices rise, low-cost smartphone makers are struggling, and one company has thrown its hat into the ring. It is Fire-Boltt, which has secured more than 40 million users in India's smartwatch market. Fire-Boltt is little known in Korea, but it was the brand that ranked No. 2 in the global smartwatch market in the third quarter of 2023, overtaking Samsung. It is a notable move at a time when it wouldn't be surprising to see budget smartphone companies wave the white flag amid "chipflation" (memory + inflation).
On the 1st, the industry said wearable brand Fire-Boltt announced it will officially enter the smartphone market by launching a new sub-brand, "boltt." Smartphones under the boltt brand, to be produced in India, will not only partner with Flipkart for e-commerce but also be distributed nationwide through various retail channels.
According to the company, boltt's new products will focus on budget models and introduce 4G (fourth-generation mobile network) and 5G (fifth-generation mobile network) devices in two lines, the Evo series and the Ace series. Specific product specifications, prices, and release dates have not been disclosed. However, the price is expected to be around 10,000–15,000 rupees (about 165,000–247,000 won). The products are set to be unveiled in early Aug.
Founder Anav Kishore started Fire-Boltt in 2015 with his sibling, Ayushi Kishore. The first product launched was a smart band. In the early days of the startup, India was undergoing a smartphone revolution, so wearables were unfamiliar to consumers and the company faced challenges. But when COVID-19 hit in 2020 and people turned their attention to health, an opportunity emerged. Kishore said the idea came from realizing that price-sensitive consumers could hardly afford overseas brands' smartwatches. Back then, prices started at 2,999 rupees (about 48,000 won). In 2021, the company expanded its share by introducing the Ninja series smartwatches, starting at 1,699 rupees (about 27,000 won).
According to market research firm Counterpoint Research, Fire-Boltt recorded a 10% global smartwatch market share in the third quarter of 2023. In India's smartwatch market in 2023, it also took first place with a 30% share.
However, Fire-Boltt had little presence in major markets such as North America, Europe, and China. It then slipped in the rankings due to a slowdown in India's market growth, intensifying ultra-low-price competition, a resurgence of Chinese companies, and a lack of premium products and ecosystem. To make matters worse, its foothold in India also began to weaken from 2024, leaving it in third place last year. As India's smartwatch market entered a mature phase, consumers began to value health features, quality, battery, and brand trust over simply low prices.
Fire-Boltt chose strategic expansion into the smartphone market to increase users' consolidation built in the smart wearables market and stage a comeback. Fire-Boltt said smartphones are a long-term strategic business area for the company as it seeks to build an ecosystem spanning wearables, smartphones, and artificial intelligence (AI)-based devices. In the industry, some say Fire-Boltt aims to become a "second Xiaomi" by building an ecosystem that covers both wearables and smartphones.
Founder Anav Kishore said, "For years, millions of consumers have embraced Fire-Boltt in their daily lives, and we have built India's largest consumer ecosystem," adding, "'boltt' is the next chapter in this journey." He also said, "Smartphones sit at the center of how people communicate, create, learn, and aspire today, and I believe there is an opportunity for a homegrown brand that truly understands the Indian consumer."
According to the industry, Fire-Boltt is targeting sales of 500,000–1 million units within four to five months after launching its smartphones. China's Vivo currently leads India's smartphone market with a 23% share. It is followed by Samsung (17%), Oppo (17%), Xiaomi (12%), and Realme Chongqing Mobile Telecommunications Corp., Ltd. (9%).
Counterpoint Research said memory accounts for about 43% of the bill of materials (BOM) in budget smartphones priced at $200 or less. When memory prices soar, budget phone makers have little room to absorb the cost. With memory prices surging and Chinese companies on the offensive, it remains to be seen whether Fire-Boltt can recreate its "price-performance legend" in the smartphone market.