Samsung, Micromax to discontinue 2G phones! Know why

Zee Media Bureau

New Delhi: Leading phone sellers in India, Samsung and Micromax are planning to discontinue 2G phones and concentrate more devices that run on 3G/4G networks.

The two companies, whose share of smartphone sales in India covers more than half of the share, will now focus on devices that support 3G/4G networks, said report in The Economic Times.

But why so? Here are the probable reasons:

• Drop in price of 3G/4G handsets: There was a time when the prices of 3G/4G handsets were as high as Rs 15,000 and more. For the common man, to affort phone as such a high price was unrealistic. But now, the cheapest 4G handset is available for as low as Rs 4,500 only, a price any common man could afford.

• More 4G services: Bharti Airtel was the first services provider to provide pan-India 4G services, and at the price of 3G. Rival Vodafone India has just launched 4G service in the country starting in Kochi and at the price of 3G too. Reliance Jio is all set to 4G services soon, which means more competition and probable reduction in cost of the network.

• Decline in sales of 2G phone: As per reports, sales of 2G devices in the July-September was just 9 percent compared to the 25 percent share in the same period of the previous year.

• Rise in sales of 4G devices: 4G phones are now available for as low as just Rs 4,500 which definitely is boon for the market. And considering that Chinese handset maker Lenovo reportedly sold 1 million units of its 4G handsets till June 2015, the market is definitely pump up.