Jio’s 4G Feature Phones See Waning Interest Amid Preference for Smartphones: Report

Reliance Jio’s effort to migrate 250 million 2G users to 4G through its ultra-affordable ‘JioBharat’ and ‘JioPhone’ keypad devices is facing challenges, with consumer interest waning over time, analysts say, according to an ET Telecom report. While Jio remained one of India’s top three feature phone brands in 2024, excitement around its models peaks at launch but fades due to minimal hardware upgrades and growing preference for economically priced smartphones, the report said, citing analysts.

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Also Read: Reliance Jio Sells 135 Million Units of JioPhone Devices: Report

Declining Feature Phone Market in India

“The shipments in India’s feature phone market declined by 9 percent y-o-y in the calendar year 2024, and may fall further in the coming years as people are willing to spend more on their handset devices and the financial schemes make it easier for consumers to purchase a smartphone,” the report quoted Shilpi Jain, senior analyst at Counterpoint Research as saying.

“Jio was among the top three feature phone brands in India in 2024. The enthusiasm around the model is high, especially during its launch phase, during which Jio markets its models…but the interest tapers off as the model becomes older,” Jain reportedly said.

Also Read: Jio Showcases AI Tools, Industry 5.0 and More Innovations at IMC2024

Key Reasons for Slowing Demand

The report cited a Cybermedia Research (CMR) report for the December 2024 quarter, stating that the 2G feature phone segment experienced a 22 percent year-on-year (y-o-y) decline, while the 4G category saw a sharp 59 percent drop. All major feature phone vendors, including iTel, Lava, HMD, Karbonn, and Cellecor, faced significant declines in sales volumes, with Reliance Jio falling out of the top five rankings.