Feature phones steer growth in mobile market

NEW DELHI: Flashy smartphones are ubiquitous now, but it is the basic feature phones that still dominate the Indian market — they are highly functional, durable and more importantly, is suited for every segment of people.

According to data from Counterpoint’s Market Monitor service, India’s overall mobile phone shipments grew 48 per cent YoY in Q1 2018. The research pinned the credit for this growth on the feature phone segment, which doubled in Q1 2018, even as the smartphone market remained flat.

One of the major reasons driving the growth is Reliance Jio’s offering in the segment — JioPhone, which in less than a year grabbed a market share a 35.8 percent in Q1 2018. Till date, JioPhone said, it has touched 25 million users and targets to achieve 100 million users in the shortest time.
Experts feel the additional features offered in JioPhone will certainly help the segment to expand.

“Jio may achieve 100 million user base for its JioPhone in the next three-four years as the announcement made in its 41st annual general meeting will expand its reach and appeal,” said an analyst.
He added that people generally avoid entry-level smartphones because of their poor in-built quality, and rather going for feature phones that can offer internet and basic entertainment services.

Anticipating a rise in demand for feature phones, RIL on Thursday announced the launch of JioPhone 2, a higher-end variant of the existing model with a QWERTY keypad, horizontal display and dual-SIM connectivity at a price of Rs 2,999.

Additionally, the company’s CMD Mukesh Ambani annouced JioPhone Monsoon Hungama (starting from July 21), where the existing customers can replace their old phones with the new one for Rs 501. The two phones will also get YouTube, Facebook and WhatsApp services from August 15.

The above-quoted analyst said he expects new generation feature phones to become a top priority for manufactures to tap the 500 million users of such phones in the country.

Post the announcement of the new feature by Reliance, HMD Global that makes Nokia phones also showed interest in offering WhatsApp service on its Kai OS platform, the popular operating system for feature phones. Nokia has already made a comeback in India’s mobile phone market and is currently among the top five feature phone-makers here.

However, the JioPhone’s success has deeply impacted other feature phone manufactures. For example, leading phone makers such as Micromax, Intex Technologies and others have increased their focus on other segments to garner growth.

Intex spokesperson had, in an earlier interview, said that it is difficult to compete with Jio in the segment because of the company’s capability of offering much more services at a very competitive price.

500 mn user base of feature phones in India

48% growth in India’s overall mobile phone shipments

25 mn user base of JioPhone

35.8% market grabbed by JioPhone in Q1 2018