iTWire - Feature phone sales rising in US, 2.8m sales expected this year
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Friday, 25 August 2023 09:31
Feature phone sales rising in US, 2.8m sales expected this year Featured
By Sam Varghese
Sales of feature phones in the US are rising, the technology analyst firm Counterpoint Research claims, adding that OEMs are increasingly entering agreements with carriers.
The company said 2.8 million devices were expected to be sold this year, with the resurgence coming because Gen Z and millennials were "advocating for digital detoxes due to the mental health concerns brought on by smartphones and social media".
In the US, feature phones linked to a carrier cost between US$20 (A$31) and US$50, while unlocked devices sell for between US$50 and US$100.
Counterpoint claimed that "hashtags like #bringbackfliphones on TikTok have garnered millions of views leading to the increased adoption of feature phones by younger consumers looking to adhere to movements like digital detoxing, minimalist lifestyles and unplugging".
It pointed out that smartphones had been widely adopted, leading to a drop on feature phone sales over the last decade, with the total share of the latter class of devices being just over 2%.
Of this, TCL held about 43% while HMD accounted for 26%, Counterpoint said, adding that the carrier also influenced uptake.
"The big three US carriers — AT&T, Verizon and T-Mobile — are exploring different feature phone OEM options due to which the US feature phone market has grown more crowded lately," the analyst firm claimed.
"...carriers [were] moving away from TCL devices and trying out smaller OEMs instead, like Tinno and FIH which have manufactured devices for AT&T’s white-labelled feature phones. Sonim and Kyocera, which provide ruggedised devices, are Verizon’s feature phone brands, while Schok and hot pepper are T-Mobile’s."
Counterpoint claimed there was a consumer base looking for devices that were minimalistic, but also had features relevant to staying connected.
"The design and specifications of feature phones have not changed much over the last few years. This is one of the factors that keep consumers from purchasing a feature phone," the company said.
"The addition of some new hardware configurations and features that are abreast with the current trends while still maintaining the simplicity of usage, may open more gates for the growth of feature phones.
"NFC is one such feature. NFC can enable payments, home automation, quick pairing, and make public transport access more convenient for users.
"Similarly, eSIMs may also be a great hardware integration as it may attract consumers to adopt a feature phone as a companion device that they can easily switch to from their main device in situations where they do not want to bring out their expensive smartphone. Adding these attributes would help make feature phones more relevant for day-to-day use."
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