These Samsung mobile phones will soon be discontinued in India, know the reason

- Posted by Giz Bot, last updated on


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South Korean tech giant Samsung is reportedly planning to close the market for feature phones in India, which are low in price but high in volume. The company along with its contract manufacturing partner Dixon will manufacture the last set of feature phones in the country by this December and not after that. According to a recent report in the Economic Times, Samsung wants to keep its focus on devices that cost Rs 15,000 or more, which means that Samsung’s low-cost feature phones will no longer be available in India.

Samsung will soon stop manufacturing of feature phones in India

Now if we talk about knowing the reason, then Samsung can do this to meet the targets of its Production Linked Incentive (PLI) scheme. The companies which make handsets worth Rs 15,000 crore or more at the factory price will only get the benefit of the PLI scheme.

Moreover, the average selling price of the smartphone in India is increasing and is currently in the Rs 10,000 to Rs 20,000 segment. Thus, this move by Samsung makes sense.

As per the report, Samsung has already spoken to its channel partners and informed them about exiting the feature phone market in the country by the end of the year.

Even the feature phone market is declining rapidly as new age technology is coming in the market at affordable rates. A Counterpoint Research report states that feature phone shipments declined 39% year-on-year in the first quarter of 2022.

These Samsung mobile phones will soon be discontinued in India, know the reason

Even telecom operators are encouraging users in India to shift to smartphones with 4G and 5G connectivity. There are feature phones that support 4G connectivity, but they are not capable of doing everything that smartphones can do. Jio also launched an affordable 4G smartphone after launching two affordable feature phones.

Users today want smartphones more than ever before and this demand is only going to increase from here. Thus, investing in the feature phone market will not be a very lucrative long term business for Samsung from here on out. However, there are still crores of 2G customers in the country who will be dependent on feature phones in the coming years.

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Story first published: Thursday, May 26, 2022, 8:36 [IST]



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