Feature Phones

Feature Phones Still Sold in the United States, What’s the Reason?

Feature phones have an average share of 2 percent in the United States market and the shipment figures are still consistent.

According to a Counterpoint Research report, feature phones still have a place in the market for three reasons. Those three things are affordability, simplicity, and toughness that appeals to a wide range of consumer bases.

While smartphones are becoming increasingly more affordable in terms of price, they are yet to match the simplicity and durability offered by feature phones.

Smartphones are becoming popular and growing faster with a number of latest features. While it seems like everyone in the US owns a smartphone , there’s a consumer base who isn’t interested in the specs or can’t understand the layout of the smartphone.

Such consumers still prefer simple feature phone layouts that are sufficient for them to simply make phone calls and send SMS messages.

The consumer base for feature phones is usually as follows:

  • Workers in the field who need a tough phone, in the event of a breakdown, such as in the agricultural, mining, construction, etc. sectors.
  • Burner phone to prevent tracking from the authorities–commonly used by criminals.
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However, there are also newer use cases for feature phones .

Feature Phone as Second Device

Some consumers may use this phone as a second device for traveling, so they don’t have to worry too much if the device gets damaged or lost.

They also use feature phones to do a digital detox from applications, notifications, and global connectivity on smartphones .

Counterpoint said that feature phones will remain consistent in the US market because of their simple design, affordability, and toughness to suit certain demographics.

While there won’t be a significant spike for feature phones in the market, there is a consistent need that creates a steady demand for this type of phone in the market.

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Prepaid lines will continue to sell these devices to accommodate affordable and durable options for people who only need simple devices.

iPhone Becomes the Best Selling Premium Smartphone in Early 2022

The sales volume of the global premium smartphone market with a selling price of USD 400, decreased by 8 percent YoY (Year over Year, YoY) during the first quarter of 2022 (Q1 2022).

However, it still performs better than the smartphone market as a whole, which is down 10 percent. This is according to a Market Pulse Service report from Counterpoint Research.

The report also highlights that Q1 2022 is the eighth consecutive quarter in which the premium market has outperformed the overall smartphone market growth.

“Apple continues to lead the premium market, exceeding 60 percent share for the second time in a row for the quarter. Apple’s performance has been driven by the iPhone 13 series, which has been the best-selling model globally every month since October 2021,” Counterpoint said in its report.

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Best Month for Apple

Additionally, Counterpoint records also show Q1 2022 was Apple’s highest first-quarter share in the premium segment since Q1 2017.

Meanwhile, Samsung’s market share in the segment declined mainly due to the delayed launch of the Galaxy S22 series compared to the launch of the S21 series in 2021.

“However, the S22 series as a whole performed well, which even became the best-selling Android smartphone in the premium segment in Q1 2022,” said Counterpoint.

Furthermore, OPPO became the third largest brand in the premium segment. OPPO is followed by Xiaomi and Vivo. The contribution of the Chinese market sales in the premium segment for Xiaomi, OPPO and Vivo has been reduced since 2021.