Feature phones on the way out? Sales plummet across India

Mumbai: Feature phone sales in India are witnessing a sharp decline due to the expansion of 4G and 5G services and the gradual phase-out of 2G mobile networks.

According to analytics firm Cybermedia Research (CMR), the usage of feature phones is expected to drop significantly over the next two years.
The report highlights multiple factors contributing to this shift, including declining smartphone prices, the expansion of digital services, and government and telecom company initiatives to promote digital transactions.

Currently, 5G smartphones priced under ₹10,000 are available in the market, prompting more users to switch. The widespread use of UPI services is also accelerating this transition.

CMR’s December report indicates a 22% decline in 2G feature phone sales and a 59% drop in the 4G-enabled feature phone segment. The leading manufacturers in this segment have also reported declining sales.

In 2023, Reliance Jio’s ₹1,000-priced 4G feature phone temporarily boosted sales, but by 2024, even Jio’s phone sales have slowed. Another research firm, Counterpoint Research, also predicts a steep decline in feature phone sales over the next two years.

Telecom companies are actively working to migrate 2G users to 4G and 5G networks as revenue from 2G services has drastically decreased. Airtel’s financial report for October–December confirmed a significant drop in revenue from 2G operations, particularly in key markets such as Gujarat, Maharashtra, Kerala, and Delhi.