People want 'dumbphones'. Will companies make them?

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Self-labelled neo-Luddites and the tech-stressed are searching for phones with fewer features. Industry experts cite precarious profit margins and a wobbly market around this need.

Self-labelled neo-Luddites and the tech-stressed are searching for phones with fewer features. Industry experts cite precarious profit margins and a wobbly market around this niche need.

In some cases, concerned parents are turning to these devices as a way of keeping their children away from the distractions of a smartphone. But the market also comprises seniors who want something simple; workers in tough industries like construction or farming, who need rugged handsets; and everyday users who can't afford to pay the average price of a smartphone, often upwards of $500 , and flagship smartphones can cost as much as $1,600 .

The more I learnt about dumbphones, the more I realised the lack of reviews wasn't necessarily why I was having an issue tracking down a device. Despite demand from a rising trend, I came to understand phone manufacturers have little to no interest in offering these devices. With smartphones comprising the vast majority of all new phone sales, technology giants have little economic incentive to keep churning out new dumbphones or updating their existing line-ups.

Many of these tech giants generally generate revenue on either software or highly specialised hardware for which consumers will pay hefty price tags. They also have very diverse revenue streams. Samsung, for instance, earns billions each year from its. Simply, these companies have little incentive to cater to dumbphone users, whose revenue potential is relatively miniscule – that is, if they can even make the economics of manufacturing the devices work at all.

There may be one way dumbphone companies can survive, however. To be economically viable, argues Husson, companies could "develop a niche premium brand to reach these segments". Indeed, some start-ups are trying to capture this specialty market and find economic success – offering a kind of modern take on the feature phone.

These new devices will also have to compete with other business models meant to appeal to users who want to wean their digital dependence, but may want to do so in a way that goes down smoother than a hardware transition.

 

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