With service providers launching 4G services in select circles and a large number of users migrating from 3G to 4G, the handsets that were launched earlier and supported 2G speeds are less in demand. Prices for 3G and 4G enabled handsets have also sharply dropped in the last few months and that may have triggered this action from Samsung and Micromax, both a large shareholder of the smart phone market in India. Reliance Jio also plans to roll out 4G services in a large scale on a pan India basis and that has brought in fierce competition among other service providers.
Micromax, currently has 14 models in its portfolio that are 4G enabled and it accounts for 30% of the total number of models available in the market. The company plans to increase the number to 20 in the near future, taking the percentage much higher. Samsung too has a similar portfolio available for customers. The launch of high speed networks by leading telecom service providers coupled with the falling prices has wiped out demands for 2G enabled handsets in India. The decision to discontinue the old models is indeed wise as that will enable the smart phone manufacturers in concentrating more on what is in demand.
Both companies have reportedly told the senior executives of leading retail chains that no new 2G smart phones will be launched and that the prices of 3G and 4G enabled smart phones that also support 2G is expected to drop further to fill the vacuum created by the disappearance of 2G smart phones.
India will be among the last countries to finally bid adieu to exclusive 2G smart phones. Only the exclusive Indian brands shall continue to have 2G smart phones in their product portfolio and they too are expected to follow suit.
