Big handset makers may discontinue sub- Rs5k models

NEW DELHI: Major mobile handset makers may move away from the sub- ₹5,000 segment this year, industry executives and analysts say, as the entry-level space shrinks due to low demand and higher distribution costs.

As a result, buyers in this price sensitive category may have to settle for used or refurbished devices on the back fewer variants for first-time smartphone buyers with low budgets. “Almost all brands have decided to move away…due to reasons like low natural demand, inertia of migrating to smartphones and the relative cost of offline distribution for potential consumers in this segment,” said Navkender Singh, research director at International Data Corporation (IDC), India.