FEATURE PHONES : STILL ALIVE, BUT WHY ?

Nokia Banana phone
 Source : theverge

First of all, let's get some recent fact and figures out of the way...

According to Counterpoint Research, global feature phone shipments increased 3% annually reaching 112 million units in Q-3 of 2018. Global feature phone shipment grew consecutively for four quarters from Q-4 2017 to Q-3 2018 whereas smartphone market experienced a small decline in global shipments during the same period. 

Here is a graph depicting the contrast in shipments between smartphones and feature phone markets.

Image source: counterpointresearch

Where does sale of feature phone comes from?

Around 90% of feature phone market is in Asia and Africa. More specifically, Middle East and Africa (MEA) and India account for more than 70% of feature phone global sales. 

Reliance Jio created disruption in feature phone market with introduction of Jio Phone and Jio Phone 2, which drove global sales of feature phones in Q-1 and Q-2 of 2018. In Q-3 2018, Jio phone sales slowed down in India after the initial hype surrounding Jio phone of effectively free price tag. MEA emerged out to be the largest feature phone market owing to shipments growth rate of 32%.

Still wondering...How and why feature phones make a sizable and relevant market?

Affordability

There are still millions of low-income people in developing nations with basic phones. An upgrade from a basic phones to feature phone puts much smaller burden in pockets of these consumers as compared to an upgrade from feature phone to smartphone. Due to high purchase cost of smartphones, feature phones dominate smartphones in poor developing parts of the world. 

Ease of Usability

The problem with majority of old people is that they are very slow and reluctant in learning new things. Features phones have limited options, thereby making it much easier to learn to operate as compared to a smartphone. When compared to smartphones, one of the most compelling attributes of feature phones which makes it the best option for needs of old age people is big battery life.

A longer battery life is also particularly useful for people living in developing countries where a large population has no proper access to electricity and people are often dependent on charging stations.

4G Revolution

Just like smartphones, features phones are also now available with option of 4G connectivity. These 4G enabled feature phones are a compelling upgrade option for already existing feature phone users because they act as affordable option for these these low-income consumers to experience internet for the very first time. Partnership of Kai Os with feature phone OEM's has also brought several useful apps on these 4G feature phones like Whatsapp, Facebook, Youtube and Google assistant, which were smartphone exclusive some years ago.