IDC: ~350M People In India Still Use A Feature Phone, And 50% Of Them Have A Model That Costs Less Than $18; ASP Of A Smartphone Is $255, Up 54% From 2020 (Jagmeet Singh/Techcrunch)
Despite the rapid growth of the smartphone market, a significant chunk of Indians still rely on feature phones, with many of them opting for affordable models that cost less than $18. According to a recent report by IDC (International Data Corporation), approximately 350 million people in India still use feature phones, which account for nearly 40% of the country’s mobile phone market.
Interestingly, the report highlights that half of these feature phone users in India have a model that costs less than $18, making them an attractive and affordable option for many consumers. This is a testament to the country’s vast and diverse telecom landscape, where a mix of affordable options and limited access to smartphones have contributed to the continued dominance of feature phones.
On the other hand, the smartphone market in India is also growing rapidly, with the average selling price (ASP) of a smartphone reaching $255, a significant increase of 54% from 2020. This surge is attributed to the growing demand for high-end smartphones, driven by innovations in technology, improved pricing, and the increasing adoption of 4G networks across the country.
While feature phones have remained a staple in many Indian households, the demand for smartphones is likely to continue growing, driven by factors such as digital literacy, improved affordability, and increasing demand for data-intensive services like mobile banking, digital payments, and online entertainment. In fact, the report predicts that the smartphone market in India is expected to grow at a CAGR of 12% over the next few years, driven by the increasing adoption of 5G networks, improved camera capabilities, and advancements in artificial intelligence.
The coexistence of feature phones and smartphones in India presents an interesting paradox. While feature phones offer a low-cost, basic mobile experience, smartphones offer a world of limitless possibilities and connectivity. However, the fact that many Indians still rely on feature phones highlights the need for makers to develop more affordable and accessible smartphone options, especially for those who cannot afford more expensive devices.
In conclusion, India’s mobile landscape is complex, with both feature phones and smartphones coexisting in a dynamic market. While the latter is gaining popularity, the former remains a significant chunk of the market, driven by affordability and accessibility. As the market continues to evolve, it will be interesting to see how the demand for feature phones and smartphones develops in the years to come.