Microsoft's feature phone exit profits Samsung, white-box

Taipei-based Digitimes Research says Samsung Electronics and China-based white-box handset makers will gain more feature phone market as Microsoft Mobile is in the works of phasing out its feature phone business within one and a half years.

With Microsoft's decision to dilute its feature phone market share, Samsung and white-box handset makers have been competing for the orders left out by Microsoft Mobile since the third quarter of 2014. Microsoft Mobile's feature phone shipments have reportedly reached 10 million to 15 million a month in 2014.

Digitimes Research has looked into the capability of more than 10 white-box handset makers and related component suppliers in China. The firm has found out that unbranded handset manufacturers combined will be able to take over Microsoft's market as they have shipped about 35 million to 40 million feature phones a month during the second half of 2014.

Although Samsung has shifted its focus to smartphones and tablets, its handset component orders in the third quarter of 2014 have begun to increase.

Aside from white-box feature phone makers, chipset suppliers such as MediaTek and Spreadtrum Communications are also seen to benefit from Microsoft Mobile's move.