2022 → Apple AirTags made $1 Billion revenue 💰

2023 → Jio has launched a ₹750 competitor 🤯

Here’s why Jio might win this “Tag” war ⬇️

Quick context 🗓

AirTag is a super small (3 cm in diameter) accessory that you can attach one to your keys. And just like that, you will never have to spend hours finding your lost keys. It’s essentially a “life hack” for people who forget / lose their stuff during commute.

Fast forward 2023 ⚡️

Apple reported over a $1 billion in revenues globally by just selling these tiny “AirTags”. It didn’t contribute any massive dent in Apple’s ~400 Billion (FY22) overall revenue. But, don’t get blinded by that small number, it has happened in little over a year.

Jio plans to own this space 🇮🇳

JioTag launched as Apple AirTags direct competitor last week and most have missed this story. It’s not a random just for sake launch.

What am I missing, you ask? 🤔

Before we get into this whole Jio Vs Apple battle, I want to show you an important co-relation. The price/urgency of the item that typically gets lost very frequently has a direct co-relation to why someone would use an AirTag for.

So, why Jio might win this “Tags” market ⬇️

First, loss aversion effect 🥺

Most urban audiences are buying multiple electronic + physical devices that they carry and might lose frequently when at Home/ office/ even commuting. AirTags play on this theory of “loss aversion” – overwhelming fear of loss of physical thing.

Second, pricing is on point 💸

Remember what we spoke few moments back – the higher the price/urgency of the product that you may lose frequently the better it’s going to be a fit use case for AirTags.

Third, android = market share 🍕

JioTags are compatible with iPhone & android alike. Compare that to Apple’s limited usage with iPhone specific access. Apple sold 6 million iPhones in India last year which is peanuts compares to 144 million android phones sold, same time.

Fourth, Jio has access to point of sale 🪙

Think the type of distribution Jio has built. There’s the Jio mobile app (with lot of real estate), then there’s this whole deal with smartphone manufacturers of selling these as bundles, will take little effort to add Jio Tags as another bundle offer.

Fifth, it’s a network effect product 📶

This is where it’s get real interesting. Every AirTag sends a secure bluetooth signal to nearby Apple devices, but it can only be read by the owner of the AirTag. That means, even if you are outside the AirTag range of 33ft, all you need is another apple user in that distance from your AirTag – how cool.