JIOPHONE TOPS THE FEATURE PHONE MARKET IN Q4-2017

JioPhone has surpassed Samsung to become the leading feature phone with a 26 percent market share (by shipment) in the last quarter of 2017. A report from Counterpoint Research has revealed that just within a quarter, Reliance Jio's JioPhone has acquired a total market share of 26 percent ( by shipment) and thus has pushed Samsung to second position with a 15 percent market share in Q4 2017, followed by Micromax with a 9 percent share, Itel with a 7 percent share, and HMD Global's Nokia brand with a 6 percent share. Other brands made up 37 percent of the market in Q4 2017.

However, the report said that for complete year 2017, Samsung still leads the market with a total shipment share of 21percent, where as Jio stands in 3rd position with a share of 11 percent. Second slot is taken by Itel brand with a total yearly share of 12 percent. On a yearly basis, Micromax has a 9 percent share and Lava has a 7 percent share.

The Rs. 1,500 JioPhone supplies were higher in the late Q4 and the device managed to bridge the demand vs. supply gap, Counterpoint noted. "One of the key reason for the sale of this phone was record pre-orders (6 million) plus many feature phone users found it a worthy upgrade," Tarun Pathak, Associate Director at Counterpoint, told IANS.

"These users have always used the similar form factor device for voice usage but using data on a similar form factor ensured that users didn't need to go through a huge learning curve when it comes to using data on smart phones," Pathak added. The positioning of Jio Phone as a Smartphone effectively as a "free" phone also worked for the company.

"Additionally, the strategy involving cashback after a couple of years in the feature phone segment makes more sense than cashback in low-end smart phones which don't enjoy such high-shelf life," Pathak added.