Feature phones all the rage as parents try to shield kids from harm

Dad, why does this button say ABC? It's a short term trend, says analyst

by · The Register

Sales of "dumb" phones are on the rise in the UK, according to telco Virgin Media O2 (VMO2), with parents choosing them instead of smartphones to try and spare their kids from the perils of social media and instant messaging.

One of the largest mobile operators in Britain, VMO2 says it has seen sales of non-smartphones double year-on-year, with a significant spike this September, as the new school year started.

Many Reg readers will recall feature phones, which supported basic voice calling and text messages, but often lacked a touchscreen or the ability to download and run apps, and even internet access more generally. If VMO2 can be believed, these are enjoying something of a comeback as parents try to make informed choices regarding their children's online safety.

"Growing numbers of parents and carers are taking conscious decisions to provide their children with reliable non-smart phones. This surge in demand reflects how families are looking for new ways to help their children safely navigate the digital world," said the company's chief commercial officer Christian Hindennach.

VMO2 says it has on offer a variety of devices fitting the non-smartphone category, including models such as the Nokia 105 and the Nokia 3210. No, not that Nokia 3210, which was incredibly popular around about the turn of the millennium, but the 2024 version brought to market by device maker HMD, which now owns the Nokia brand for phones.

And it seems that it isn't just concerned parents that are driving this trend. Earlier this year, the BBC reported that many buyers were turning to feature phones, including senior citizens who just want a simple to use device, workers in industries like construction that need rugged handsets, and also everyday users who balk at shelling out hundreds of pounds for a shiny high-end device.

Meanwhile, Counterpoint Research claimed last year that feature phones were making a comeback in the US thanks to a trend of "Gen Z and millennials" unplugging from social media, and being swayed by the charms of playing Snake on a tiny screen.

The market watcher forecast that sales of such "dumb" phones would reach 2.8 million during 2023, with "continued stable sales in the near term as niche demand drivers maintain sales."

Tech analyst Canalys's Runar Bjørhovde, on the other hand, said that generally speaking, "feature phones have declined gradually over the last two decades. Although we're yet to see any significant shipment growth lasting more than a month or two returning, shipment volumes have stabilized and the declines have flattened out in the last few years."

He noted that the mobile industry had also seen "a similar spike in late 2021 and 2022, where the demand spike came from Gen Z'ers seeking to 'digitally detox', after their device's usage increased dramatically during the pandemic."

Bjørhovde said HMD was set apart as the only OEM "seeking to tap into this opportunity." Its ongoing "better phone project" is seeking to tackle this issue while also "helping HMD rebrand itself away from Nokia," he added.

Too much screentime, too smart phones

Bjørhovde also added that demand spikes in feature phones are "first and foremost a response to overuse of smartphones." He said Canalys's consumer research had shown there are "growing concerns of people using their phones too much and trying to find balance. For many, the feature phone is one suggestion that some people will try out."

And it's cheap at the price, he added. "The price-points of feature phones creates a low threshold for consumers to buy. The most expensive feature phones often cost less than the least expensive smartphones, so most consumers will be less worried about an unsuccessful purchase than for example for a £1,500 foldable smartphone.

"You have to look very hard to find a feature phone costing more than £100, even with 4G connectivity and full Barbie branding."

VMO2 says it has been working with Internet Matters, a not-for-profit org that offers child internet safety advice to parents and other carers, and the two have created free guides to help families stay safe online, available via a dedicated web page.

"We're committed to supporting parents and guardians to help them keep their children connected, safely. Through our 'Find the Right Words' campaign and partnerships with charities like Internet Matters, we're providing families with expert guidance, resources and practical tips so they can protect their children online," Hindennach said. ®