A research has revealed that the retail market of Indian mobile phones recorded a loss of five per cent revenue in the financial year 2011-12. The main reason behind this drop out was the cut throat competition between the companies and ever increasing smart phones for lower prices. It is known that many top brands such as Samsung, Nokia and Spice are releasing phones with better features for best prices. This is showing an impact on other mobile handsets without special features.

Notably, a black-and-white phone is sold between Rs.1000 and Rs.1200 and still people are not ready to purchase them while the same phones with less features and small display were sold at not less than Rs.3000 a decade ago, said Ramesh, a mobile vendor at famous Jagdeesh market in Hyderabad.

Thimmappa from Bangalore's Burma market expressed similar views. He said people used to spend more than Rs.2000 to get a second hand mobile phone with screen less than a pager. However, the scenario changed. Now, you get a camera phone for the same price and who will go for a black-and-white phone, he questioned. If the same continues, then mobile phone companies would stop rolling out basic models.

AW Phani