The Chinese smartphones It has a growing presence in the mobile telephony market, and not only in China, as was the case until recently, but in the world market. Some manufacturers such as Xiaomi or OnePlus have managed to conquer a huge number of users with their terminals, who despite the fact that on many occasions they do not sell their devices directly, they have cared little to get an inexpensive and good quality terminal .
And it is that in these two aspects resides the success of mobile devices of Chinese manufacture and origin. Most of them have a very low price compared to other devices manufactured in other countries and also boast on many occasions of having outstanding characteristics and specifications. If you have been wondering for a while the reasons why these smartphones are cheap, today we are going to explain it to you in great details.
Remember that yes, this is applicable for most Chinese smartphones, but for all, since as you surely know there are mobile devices of Chinese origin with great benefits and sometimes with very high prices.
High performance, but almost never cutting edge
One of the main reasons why mobile devices made in China are so competitively priced is that despite have high performance, they are almost never cutting edge. For example the processors we see in Chinese smartphones we never see a Snapdragon or a state-of-the-art processor, but we see interesting substitutes, that yes, they will perfectly fulfill their objective.
Another part where costs are reduced when making the device is on the screen, where Chinese manufacturers almost always have the help of Japan Display that offer good screens, but for example, lower than those mounted by Samsung or Apple in their terminals.
Finally, there are many other hardware components such as RAM or the materials used to manufacture the case in which all manufacturers save a few euros that ultimately affect the final price.
Workforce
Labor is another major reason Chinese smartphones hit the market with such low prices. Manufacturing a device in China has a very low price and that is why Xiaomi, Huawei or Meizu take advantage of it.
Apple, Samsung and other manufacturers suffer from the high prices of labor outside of China and that finally causes the price of the terminal on duty to increase. Although yes, more and more components or parts from manufacturers in other countries are manufactured in the Asian country to save costs and reduce the final price of the smartphone, something essential to continue in the race to dominate the market of the mobile phone.
Minimum spend on marketing
Surely if you have watched television these last few days you will have noticed that almost continuously and on all channels we can see promotional advertisements for the new iPhone 7. Apple every time it launches a smartphone or almost any device on the market it spends a huge amount of money in those ads and all kinds of marketing.
What you are not going to find for sure is an advertisement for Xiaomi on any Spanish television or in almost any country. This considerably reduces the cost of any smartphone that hits the market.
In this regard, it must be echoed that despite the fact that Chinese manufacturers do not advertise themselves on television, they have enough publicity, with their very low prices that everyone talks about.
Selling online is the key
Another good way to reduce the final price of any mobile device is sell it only through the network of networks. This reduces expenses in physical store rentals or personnel, in which for example some companies spend real money that has a direct impact on the price of the device.
Yes, it is true that most Chinese manufacturers are already thinking about opening physical stores around the world, which we hope will not trigger the price of the smartphones they launch on the market.
Production is not unlimited
One of the best strategies that Chinese manufacturers follow is to create a need for the user, and also create it immediately. They achieve this by announcing the launch, at an attractive price, promoting its virtues and also offering it in a limited way. Sales skyrocket due to the need created and the fear of running out of the terminal.
For the manufacturer, this is sensational because they will never or almost never have excess stock of any device, thus saving costs that will once again have a direct impact on the price of the mobile device on duty.
Cheap, but not poor quality
Not too long ago everyone considered Chinese smartphones as a second division due to their poor quality in almost every way, although with an affordable price for any pocket. Since then many things have changed and Today, although they still have very low prices if we compare them with other terminals on the market, their quality in some cases has nothing to envy of some of the best devices present in the market.
As we have told you, some manufacturers save costs on the screen or in the processors, but that does not make them poor quality terminals, but different ones and with more than enough power for any case. Perhaps by buying a smart smartphone we cannot boast as we would do with one from Apple or Samsung, but we will save good money without losing quality.
What in your opinion are the reasons why Chinese smartphones are so cheap?. Tell us your reasons in the space reserved for comments on this post or through one of the social networks where we are present.
It seems to me that you have little information about it. You will never see a snapdragon. Go I have dreamed that my network my note 3 pro has a snapdragon 650. More information before writing.
Being an Apple user ... iPhones are made in China ... With cheap labor ...
And as the previous colleague says ... The Chinese terminals of "decent" brands also mount Qualcomm, Sony cameras or Japan screens like Apple.
I totally disagree with almost all your arguments.
1." they have high performance, they are almost never cutting edge ”. It would be true if Huawei had not implemented before anyone else (Apple) its touch screem, or whatever it is called to implement the pressure on the touch screen, or its double camera, or the elimination of the Jack in the letv, or the fhd or 2k screens in Many of its positives and that today they haven't even mounted it on the iphone7… ..
2. »the processors that we see in Chinese smartphones we never see a Snapdragon or a state-of-the-art processor". It would be true if xiaomi did not launch almost all its devices with snapdragon, or if meizu had not launched terminals with Samsung's eynox ...
3. »Making a device in China has a very low price». That is very true, but you should comment that companies like Apple mount 100% of their terminals there, like Sony, like Samsung, which does not manufacture all of them there but a large part, or LG the same ...
In fact, Apple does not manufacture any component of its devices, it designs them and orders the components to third parties, where all companies buy, and Foxcom assembles them for them, I don't think it makes the labor too expensive.
4. Regarding marketing spending, you are absolutely right, it sure makes an egg more expensive, but this should be looked at, that Chinese manufacturers like Huawei spend much less and sell much more. And others like xiaomi, oneplus, oppo or vivo do not spend and their best publicity is word of mouth and it seems that they are not doing bad at all.
Perhaps one of the keys to these cheap prices is that the profit margins of these companies are much lower than those of Apple or Samsung. Since, for example, the manufacturing costs of a xiaomi mi5s should not be very different from an iphone7 or a s7, about $ 200, but one sells for $ 400, another for $ 800 and another for $ 1200. Such a difference is never justifiable by any advertising campaign. But this is already a personal opinion. A greeting.
Before writing an article, inform yourself, because you have no idea.
I have a Oneplus 3, look at the specifications and date with a brick in your mouth.
What is clear is that the people who comment on the blogs have much more idea than many of those who write the articles, although in this case it is so evident that it almost goes without saying. I subscribe to everything German comments, as well as the other comments.
To specify something else, I would differentiate the Chinese manufacturers in 5 steps:
- In the first place, we would have those who resort to traditional marketing to sell outside of China, such as Huawei, Lenovo or ZTE who sell all over the world through operators and department stores, following a strategy closer to traditional manufacturers .
- In second place I would place manufacturers whose main (and almost unique) market niche is the Chinese market itself, such as Oppo, Vivo or Coolpad, brands that are very widespread within China but whose sales abroad are not a priority.
- In a third step, I would put the manufacturers that, selling a lot in China, are on the way to export their products, so that they have many products facing the international market, such as Xiaomi, OnePlus (belonging to Oppo), LeEco, Meizu, Zuk (belonging to Lenovo) or Honor (belonging to Huawei). We would also have TCL, but outside of China they sell under the Alcatel brand and which also makes phones for third parties such as BlackBerry or operators.
- One step below, I would put Umi, Jiayu, Elephone, Ulefone…. that come to have a strategy similar to the third tier, but that move more in the low and middle range, always betting on Mediatek processors and more "humble" characteristics.
- And finally, Chinese manufacturers who are exclusively dedicated to making "clones" of recognizable devices such as the Samsung Galaxy or the iPhone (for example GooPhone).
How can they offer prices below the "western" competition? Well, because they invest much less money in development, they use components with several months on the market (although for their flagships they always use the latest from Qualcomm), photographic sensors also tend to have some time on the market (almost always Sony or Samsung sensors), displays are usually ordered from third parties (Japan Display or Sharp mainly), advertising expenses are greatly reduced and distribution expenses are reduced when selling through “retailers” (such as Aliexpress, eBay, Amazon, Tinydeal, DX, igogo …).
By selling abroad, but in an "indirect" way, they reduce support and warranty costs to a minimum, they do not pay the "royalties" for the use of patents and technologies, nor do they have to divide their profits between distribution and sale, since this is on the part of the "retailers." In addition, those prices that in Europe seem like real bargains, are actually much higher than the sale prices in China, leaving a lot of profit on the way. And the "retailers" when distributing at retail, usually manage to avoid that their products go through customs (if they distributed to the wholesale, it would be more difficult for them to avoid them).
In some cases, they are companies whose factories have been financed by working as OEMs for "Western" manufacturers, so that machinery, technology development, manufacturing processes, research, etc ... are marginal expenses in these companies.
The Chinese also speculate on the price of the components: instead of manufacturing millions of units to flood the markets and physical stores, they manufacture small consignments in which the first ones come out at a price very close to the cost price and as said components go down price they increase the profit margin.
But if the iPhone are made in China !!!!! Hahaha. Good joke this article
Nor do I bother listing all the nonsense in this article… They have already done so in previous comments. So please,
DEDICATE TO ANOTHER JOB, BECAUSE THAT OF A WRITER IS NOT YOURS !!!!
Pd: what an article slop ...
Good,
I agree more with the comments than with the article.
Indeed I believe that information has been lacking at the time of writing it since there are many Chinese brands with cutting-edge technology in their devices. And that Apple does not manufacture in China !!! But if you put it on the case of your products.
The thing that Chinese brands do not advertise is logical, how are you going to advertise in countries where you do not have a presence? Chinese brands advertise in China, which is where they move 98% of their production. Now Chinese brands that do have a presence in other countries, such as Huawei, do advertise.
The main reason why Chinese brands, which only have a presence in China, are cheaper is that they do not pay for patents on their equipment. Bluetooth, NFC, Wifi, etc. are third party patents that have to be paid when they are incorporated into a computer. In China these payments are not made. The IPxx certifications are also not paid, nor is VAT (and other taxes) paid, all this sum of costs is what makes the reduction of the equipment so high.
When Xiaomi, Meizu, OnePlus, Ulefone, Elephone, etc ... land in Europe (if it happens) they will have to pay all those certifications if they want to sell outside of China and then their equipment will go up in price. Until then, let's continue to enjoy great equipment at reduced prices ...
Section 1 made me laugh and I haven't read any more. Please inquire before publishing
Your post was not very successful, I personally enjoyed the benefits of a Chinese smartphone a leeco le max 2 with incredible features snapdragon 820 top of the line 4 gigabytes of RAM sony camera of 21 mega pixels 64 bits adreno 530 8 cores 2,15 gigahertz 32 gigahertz internal memory 5,7 inches QHD screen and it is not the only one, many Chinese mobiles are implementing high-end features at very good prices apart from that it cost me less than 300 dollars.
I think this whole article is wrong, they do not use the best screens, hahaha, they do not have the best processors or the best performance hahaha, the screen of one plus 3 maybe is the best on the market, the xiaomi mi5s is one of the most powerful terminals and It uses a snapdragon, and the mediatek precessors are great, I have a xiaomi redminote 3 pro with a mediatek that gives me much better performance than many snapdragon ... Before making an article on Chinese cell phones, find out a bit ...