Low cost, entry-level smartphones to see demand boost

Demand for entry-level smartphones is expected to surge with telecom operators aggressively looking to bring existing 2G customers on their 4G-powered networks. Industry experts said that a majority of users may be from rural India, as the 4G business models are tied to device-locked sim cards, region-locked devices and tie-ups, and small ticket lending platforms.

“Feature phones have longer shelf life but the pandemic has impacted feature users the most. So, we can expect many to shift to entry-level smartphones. However, the upfront pricing must be closer to the $15-40 range like that of feature phones,” said Tarun Pathak, associate director, Counterpoint Research.

This shift may not happen immediately, as delayed purchases are likely, he added.