Why Are Feature Phones Making A Comeback In India As Smartphone Prices Rise?

India’s feature-phone market continues to hold its ground as rising smartphone prices make upgrades less affordable for many consumers.

Manufacturers are responding by adding digital payments and other services to basic handsets while retaining their key attractions: low prices, long battery life and ease of use.

The pressure on smartphone affordability has intensified since September.

Counterpoint Research reported on October 23 that shipments of smartphones priced below ₹20,000 fell 47 per cent year-on-year during July–September, partly because price increases pushed several models into higher price brackets.

Overall smartphone shipments declined 20 per cent. While this does not confirm a shift towards feature phones, it highlights the challenges facing budget-conscious buyers.

Arijeet Talapatra, CEO of itel India, said affordability, durability, battery life and replacement demand continued to drive feature-phone sales.

Ravi Kunwar, CEO of HMD India and APAC, estimated that around 200 million people still used 2G feature phones. He said many wanted better connectivity without switching to smartphones.

PhonePe’s UPI 123Pay enables payments on compatible feature phones without internet. Its launch partners included Nokia, HMD, Lava and itel, with helpline support in 13 languages.

CMR data for April–June 2026 showed 2G shipments rising 5 per cent year-on-year, while 4G shipments fell 43 per cent.

Itel led the 2G segment with 38 per cent, followed by Lava at 30 per cent and HMD at 20 per cent.

Talapatra expects faster 4G adoption as itel adds payment support and larger displays.

HMD sees improved connectivity boosting demand. Kunwar said some consumers were choosing basic phones to escape social media and notifications.

Manufacturers must add useful features while keeping phones affordable and simple.

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