ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
  • Markets
    • Stocks
    • Global Markets
    • IPO
    • Companies
    • Currency
    • Commodities
  • My Money
  • Web Stories
  • Calculators
    • Income Tax Calculator
    • Home Loan/EMI Calculator
    • Mutual Fund Returns Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • SIP calculator
    • Lumpsum Calculator
    • SWP Calculator
  • Videos
    • M Se Market
    • Jeb Zindagi Zaroorat
    • Light Camera Stocks
    • Tech Takes
    • Big Bulls Ka Nishana
    • Paisa Wasool
    • Commodity Ke MrityunjayMantra
    • The Right Property Show
  • Economy & Infra
    • Policy & Initiatives
    • Agriculture
    • Telecom
    • Aviation
    • Railways
    • Retail
    • Roadways
    • World Economy
  • Exclusive
    • Wealth Guide
    • Interviews
  • Auto
    • Cars
    • Bikes
    • Electric Vehicle
    • Commercial Vehicles
  • Tech
    • Mobiles
    • Gadgets
    • Reviews
    • Tips and Tricks
    • Apps
  • Real Estate
    • Home Buyers
    • Builders
  • Trending
    • Entertainment
    • Politics
    • Lifestyle
    • Travel
    • Sports
    • IPL 2023
    • Karnataka Elections 2023
    • Viral
    • Education
    • Jobs
Read in App
Business News » Technology News

Is the Govt killing feature-phone market for good?

Prices of feature phones are expected to rise significantly with the implementation of the 'panic button' feature. 

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Is the Govt killing feature-phone market for good?
Woman in rural India speaking on feature phone. Photo: AFP

The Union Government mandated a new rule that beginning 2018 all phones sold in India must have a ‘panic button’ and GPS functionality. The move is aimed at making lives of women safer however this may also wipe out nearly 40%--100 million phones a year—mobile phone market in India.

The development has however not gone done well with some mobile phone manufacturers. Indian Cellular Association (ICA), President, Pankaj Mohindroo, in an Economic Times report, said that the implementation of GPS in new mobile handset will not be in the interest of consumers at the bottom of the pyramid.

Four out of 10 mobile phones sold in India today are feature phones. These are phones with basic functionality and retail for as low as Rs 500 per piece.

Industry experts say that adding GPS feature phones will increase their cost by nearly 100%. Simply put, adding GPS could take the price of a feature phone to Rs 1,000-1,600. With the cheapest smartphone in India, with GPS functionality, retailing at under Rs 2000, the death-knell for feature phones market isn’t a fantasy anymore.

According to Neil Shah, Research Director – Devices and Ecosystems, Counterpoint Research, “Adding a GPS and related integration into the low-level OS in feature phones will be challenging as it could raise the phone prices by at least $2-$3 (Rs 133-200) and also put pressure on the battery life of the feature phones,” said Shah.

The GPS component alone is expected to cost up to Rs 66.4 ($1), while the required software and technical enhancement is expected to raise the cost even further, according to an Economic Times (ET) report.

Although, the feature phone market in India is already on its last legs, this move by the Government is only likely to act as a catalyst.

Shah of Counterpoint Research said, “By the time this new rule is implemented, the contribution of feature phones to the total sales will be less than 10% of the total sales volumes which will be mostly under sub-$20 price points. So it will very much depend if feature phones will phase out by then or this rule makes feature phones phase out."

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Feature PhoneGPSDepartment of TelecomIndian Cellular AssociationTelecom
Written By: Collin Furtado
Updated: Thu, Apr 28, 2016
02:20 pm
Mumbai, ZeeBiz WebDesk
RELATED NEWS
India's telephone subscribers stood at 105 crore in February: TRAI India's telephone subscribers stood at 105 crore in February: TRAI

LATEST NEWS

Google Chrome's new extension to let users create side panel UI

Modi govt increased railways budget for NE, helped expedite projects: Minister Ashwini Vaishnaw

Sleepless in Kyiv: Nighttime Russian air campaign terrorizes citizens in Ukrainian capital

IPL 2023: What happens if rain washes out the reserve day for CSK vs GT final?

Debt-to-earnings ratio of steel producers to remain below 2 times in FY24, says Crisil Ratings

Tecno CAMON 20 Series launched with industry-first sensor-shift technology - Check price and features

City Union Bank shares tank over 9% post-Q4 results; should you buy?

GT vs CSK IPL 2023 Final: Funny memes deluge Twitter after rain-marred Gujarat vs Chennai IPL final postponed

M&M top gainer on NSE, shares rise 5%; should you buy, sell or hold?

Sagar Parikrama: 6th phase of fisherman support programme to be launched in Andamans today

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2023. Indiadotcom Digital Private Limited. All Rights Reserved.
LIVE TV