KaiOS is a Linux-based, light OS optimized for 3G and 4G smart feature phones. It is developed by KaiOS Technologies Inc, a Hong Kong based company with 250 employees across multiple offices in San Diego, Shanghai, India, France and other cities. KaiOS first appeared in 2017. Google invested US$22 million in KaiOS Technologies Inc. in June 2018.

Leveraging the success of Reliance Jio Phone, KaiOS powered smart feature phones quickly ramped up volumes over the past two years. KaiOS is bringing 3G and 4G smart feature phones into more emerging markets in 2019, including Indonesia, South Africa and Nigeria etc. It is well-positioned to maintain strong momentum in 2019 and beyond by connecting billions of unconnected people (without any internet connection and access) in emerging markets. Meanwhile, KaiOS will help carriers migrate low ARPU 2G feature phone users towards 3G and 4G services in many emerging markets.

We expect KaiOS phone shipments will grow +50% YoY in 2019, with more than 30% volume share coming from non-India markets, such as Africa, South East Asia and Latin America.

Operators and device makers, like Vodafone and Samsung, must monitor closely this low-tier opportunity for price-sensitive customers.

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