Smartphones Have an Unexpected New Rival

Recently, an Indian government official announced that iPhones will start rolling off an assembly line in Bangalore by the end of April, targeted at local customers. It's a big moment for Apple, which is counting on India's emerging middle class to make up for slowing sales in other markets.

But don't bet on the iPhone conquering India, or any other emerging market, just yet. That's because smartphones of all kinds are facing stiff competition from an unlikely new challenger: feature phones. With simple handsets and small screens intended mostly for calls and text messages -- similar to the Nokia or Motorola you probably owned years ago -- a new generation of feature phones is suddenly looking like a threat to Apple and its rivals.