A recent study conducted by technology market research and advisory firm CyberMedia Research (CMR) uncovers a significant change in consumer preferences in India’s mobile phone industry. Despite the continued importance of feature phones for a substantial portion of the population, India is witnessing a rapid acceleration in digital adoption, leading to a revived enthusiasm for budget-friendly 4G and 5G smartphones priced under INR 10,000.
The study, which surveyed over 2,000 mobile phone users aged between 18 and 50 years across diverse cities including Amritsar, Bengaluru, Bhopal, Bhubaneshwar, Coimbatore, New Delhi, Kochi, Nasik, Patna, and Varanasi, indicates a growing trend among feature phone users. They prioritize features such as extended battery life (78%), user-friendly interfaces (74%), affordability (57%), and integration of digital functionalities. Significantly, three out of every four users are keen on transitioning to smartphones, particularly within the price range of INR 6,000 to INR 8,000.
Evolution of Usage Patterns
The research underscores a transformation in the utilization of feature phones. On average, Indians allocate three hours daily for activities such as calls (87%), alarms (72%), and texting (62%). Notably, a significant portion, approximately one-third, also employs apps for functions like weather updates (47%), news consumption (34%), and social media engagement (24%).
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Desire for Upgrade Driven by Limitations
Despite recognizing the advantages, users point out drawbacks of feature phones such as subpar camera quality (62%), absence of advanced applications (56%), and restricted internet connectivity (53%). These factors are motivating the transition towards smartphones, including those with 5G capabilities.
itel Emerges as Leader in Feature Phone Loyalty, Poised for Upgrade Surge
While Samsung leads in brand recognition for feature phones (74%), itel distinguishes itself with remarkable conversion rates – 61% transitioning from awareness to trial and an impressive 86% from trial to ongoing usage. Additionally, itel leads in overall satisfaction (94%), brand loyalty (94%), and advocacy, boasting a notable NPS score of 24%.
“Our research identifies a key trend: consumers are increasingly seeking feature phones with a more premium experience, including features like UPI payments. However, the inherent limitations of these devices are ultimately driving them towards smartphones, particularly affordable 4G and 5G models. Brands like itel, which excel in both budget-friendly smartphones and feature phones, are well-positioned to capitalize on this shift, especially among Gen Z and millennials. itel’s impressive conversion rates and strong brand loyalty are a testament to their understanding of the needs of value-conscious Indian consumers,” said Prabhu Ram, Head – Industry Intelligence Group (IIG), CyberMedia Research (CMR).
Note: The CMR study results are based on the randomly chosen sample size of >2,000 mobile phone users, there is 95% confidence that the findings have a statistical precision of plus or minus 5%, accurately reflecting the sentiments of the broader population.