China feature phone (Teléfono móvil 2G)suppliers focus on the Indian market

According to the recent mobile phone market report by market research firm Counterpoint, the market for feature phones (Teléfono móvil 2G also known as non-smart phones) has maintained its growth momentum for four consecutive quarters. In contrast, the smartphone market has entered a downturn and sales have fallen year-on-year. Counterpoint even predicted that the feature phone market will continue to grow in the next five years.

According to data released by the Indian Telecommunications Authority (TRAI) in 2017, there are more than 1.2 billion mobile phone users in India, of which 65% are feature phone users, about 780 million. IDC's data shows that as of the second quarter of 2018, India's feature phone shipments were 44 million units, an increase of 29% compared with the same period of the previous year, and 10.5 million more than smartphones. Counterpoint's research shows that in the first quarter of 2018, the Indian feature phone market doubled, while the smartphone market was flat compared to the same period last year.

Counterpoint's research shows that for the first time in 2018, the global smart phone market has experienced three consecutive quarters of decline. Compared with such a weak situation, the contrarian rise of the feature phone is very bright. This makes people feel that the trend is unpredictable, and they can't help but think about the reasons behind it.

One factor in the popularity of feature phones is battery life. Power shortages are a big problem in India. As of the second half of 2017, about 300 million people in India's nearly 1.3 billion people still do not have access to electricity, accounting for about 23% of the total population. Among all the world's unpowered population, India is one-fourth of the world's largest, and the number of unpowered people is the highest in the world. The World Bank report shows that the power shortage caused the Indian economy to lose about 7% of the country's GDP. Therefore, in terms of mobile phone life, many Indian users will prefer a three-day one-charge product, while a typical urban user's smart phone usually needs at least two charges a day while running multiple applications. This makes local consumers prefer some simple-featured mobile phones, so that they do not consume much light quickly. The feature phone can also be used as a backup machine for smartphones. If the smart phone is out of power, you can use the function machine to save the emergency and keep in touch with the outside world. This is the root cause of the large market demand for feature phones (Teléfono móvil 2G)

For a feature phone (Teléfono móvil 2G) supplier, marketing and design are slightly volatile and can be adjusted, and once the supply fluctuates, it will face a loss. At the supply chain end, the production capacity is usually scheduled at least one year in advance. If there is a problem in the link, the subsequent cycle of the impact will be long, and the integrity of the cooperation will be crucial.