Samsung, Micromax to discontinue 2G phones? - Samsung and Micromax, the lead- Navbharat Times Photodhamal

1/11

Samsung and Micromax, the leading sellers of smartphones in India, are planning to discontinue so-called 2G phones and focus on devices that run on faster 3G and 4G networks as prices have dropped sharply for such handsets in the past year. Then there's the Reliance Jio effect.

In This Pic : Samsung, Micromax to discontinue 2G phones?

Pic Courtesy : BCCL

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"The focus has shifted to 4G phones with telecom operators launching such services," said Micromax Informatics chief executive officer Vineet Taneja. "4G models already account for 30% of our portfolio with 14 models and will increase to 20 by March."

In This Pic : Samsung, Micromax to discontinue 2G phones?

Pic Courtesy : BCCL - Non Copyright

3/11

Senior executives of three leading retail chains said on condition of anonymity that both companies have told them and other trade partners that no more new 2G smartphone models will be launched. Prices of 3G and 4G smartphones, which also support 2G, may drop further to fill the price vacuum created by the exit of 2G.

In This Pic : Samsung, Micromax to discontinue 2G phones?

Pic Courtesy : BCCL - Non Copyright

4/11

Both companies are currently liquidating 2G phone stocks, they said. Of the 25 models that Samsung launched this year, 16 are 4G enabled. A Samsung India spokesperson hadn't responded to an email as of press time Wednesday.

In This Pic : Samsung, Micromax to discontinue 2G phones?

Pic Courtesy : BCCL - Non Copyright

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Industry executives said the companies are exiting 2G smartphones after sales slumped in the past year. In the July-September quarter, 2G devices accounted for 9% of total Indian smartphone sales compared with 25% in the same period last year, Counterpoint Research has estimated. 2G smartphone sales are now just 5% of total sales and further dropping due to lack of availability, said Subhash Chandra, managing director of cellphone retailer Sangeetha Mobiles.

In This Pic : Samsung, Micromax to discontinue 2G phones?

Pic Courtesy : BCCL - Non Copyright