THE RISE OF SMART FEATURE PHONES

The launch of Nokia’s Asha series and Samsung’s REX series has brought the spotlight back on ‘feature phones.’ Once considered basic, no-frills devices used only for texting or calling, these phones have acquired a new avatar – the ‘smart feature phone’ that includes some features found in smartphones, and are gaining popularity in the Indian market.

According to Gartner, feature phone  sales have declined but the smartphone  segment is booming, with shipments rising  by 47 per cent year-on-year. A mobile  industry report by IDC shows that for first time ever, more smartphones were shipped worldwide than feature phones. In the first three months of 2013, around 418.6 million

mobile phones were shipped, out of which 216.2 million were smartphones, which is about 51.6 per cent, a historic figure. The main reason for the rise of this popularity of smartphones are declining prices, but it would nevertheless be premature to write the obituary of that old reliable, the feature phone.

Phones might be getting bigger and faster, but one should not forget that a large chunk of the world’s population still wants nothing more than basic voice, messaging and Internet access on their handsets - classic feature phone territory.


A ‘Smart’ feature phone?

In simple terms, a smart feature phone is a phone that can connect to Internet via GPRS (2G) or EDGE (2.5G), has a camera with a relatively low-megapixel count and the ability to run apps. However, this definition is changing rapidly as manufacturers continue to compete in this segment and add features to what were once rather basic devices.

The major difference between a feature phone and a smartphone is that the latter sports powerful processors, has multi-tasking abilities, runs on a powerful operating system and can without hassle run games and apps.

But this difference is narrowing, as now the smart feature phones are coming with app access and have better features than their relatively “dumb” predecessors. Nokia can be given the credit for reviving feature phones with its Asha series. At Nokia World 2011, the company announced  its new product range,  dubbed ‘Asha’ (which means ‘hope’  in Hindi) which the company claimed to be  targeted at the emerging markets.

Giving feature phones ‘Asha’ 

And the Asha series has certainly proved a  star performer for Nokia. The company might  be facing  a stiff challenge in the smartphone  segment but it is the Asha series that has been  accounting for some very significant sales  for it, and has kept it right at the top when it  comes to the number of devices shipped in the  feature phone segment.

This year at MWC, Nokia displayed its  prowess and showcased two new feature  phones, the 105 and the 301 at the global stage.

This was followed by the launch of its next  major Asha series device, the 501.

Samsung, Nokia’s great  rival, has also been  working away at the  smart feature phone segment. The company  launched its affordable REX series last year  and has been spending a lot in its promotion.

The REX series consists currently of four  handsets that are priced between $us 50 to $us 100, and pales in comparison to Nokia’s  portfolio, but these are early days. Clearly a  battle royale beckons in this segment as well.

Speaking about the feature phone segment Viral Oza, Director Marketing, Nokia India says  “While the overall feature phone segment con-tinues to be the bulk of the mobile phone market in India, people are now looking for smart  features like mobile Internet, instant messaging, high-resolution touch screens, smarter user interface, etc., similar to that  of high-end smartphones but at attractive price points. The target audience includes first-time

Internet users who now can aspire to get the  ultimate mobile experience and stay connected  with low priced smartphones. The Nokia Asha  series of devices bring smart solutions to the  maturing consumer base, which is now looking  to do more with their handsets. Our Asha full  touch range has democratized services such as   music, maps, web applications, faster internet,  access to popular social networking sites etc by  widening accessibility and affordability of key  services to consumers at new price points – between $us 50 – $us 150.”

This feature (phone) story ain’t over!

There is a huge installed base of feature phone  devices across India which largely consists of  Nokia devices, thanks to Nokia’s dominance

in the market for a decade. However, smartphones are coming into India thick and fast  with the likes of Samsung, HTC, Sony, LG and a host of indigenous handset makers like Micromax and Karbonn leading the charge  with cost-effective Android based smartphone  devices. But it would still take some time for  these devices to find their way into the hands  of the majority of consumers - while  urban India is  smartphone territory, other regions still swear by feature phones.

The battle between ‘Smart’ feature phones  and smartphones has been well and truly  joined. The force of affordability and ease of  use is with smart feature phones, while that  of quality and features is with smartphones.

The coming days will tell us whether feature  phones will once again come into prominence  and outshine smartphones or whether the

Asha and REX surge will simply prove to be   the last stand. But as of now, those on a tight  budget have the option to choose between a smart phone and smart feature phone, which  proves that it is not the end for feature phones.  Not yet.

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