WiFi capability increased threefold since last year, with 20 percent of all new handsets equipped with it.

Touch screens on both feature phones and smartphones have also seen significant growth since last year, with 26 percent of all new handsets purchased in Q2 including this feature physical QWERTY keyboards by comparison, were available in 35 percent of handsets sold.Feature phones are taking on more of the physical characteristics of smartphones, and often offer greater exposure to carrier services, Rubin said.Although their user interfaces continue to improve, the depth of their applications generally lags behind those of smartphones. With the price gap between smartphones and feature phones narrowing, to remain competitive feature phones need to develop a better Web experience, drive utility via widgets, and sidestep the applications arms race.