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.
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.
