How Reliance Jio 4G may make the 2G feature phone extinct

The days of the ordinary feature phone are numbered with consumers rapidly upgrading to 4G feature phones, led by the JioPhone, that offer a much richer data and video experience, forcing plain vanilla handset makers to review their production plans.

CyberMedia Research (CMR) data shows that market share of 2G phones has plunged 17 percentage points in just six months to 30% in the quarter ended June, while Reliance Retail’s 4G variant, called JioPhone, increased its market share by 9 percentage points in the same period to 27%.

Prabhu Ram, head of industry intelligence group (IIG) at CyberMedia Research (CMR), said handset makers would require “economies of scale with adequate telco support to match JioPhone’s pricing”.