Reasons for Cheap Chinese Mobile Phones

 Edward Couler
  Apr 26, 2018

Chinese smartphones have swept the world with high configuration and low prices. When you use a Chinese mobile phone, you are sure to be shocked by its high quality and low price. But is Chinese manufacturer a charity? Are they really willing to lose money to buy mobile phones? Is there something hidden? This article will introduce you to the reasons for the low price of smart phones in China.

cheap labor

The most famous reason for the low price of smart phones in China is the low labor cost in China. China's labor force is the lowest in the world. This is also the main reason why many companies build factories there.

Chinese mobile phone manufacturers such as Xiaomi, Huawei and Meizu have the advantage of producing mobile phones locally, which means they can save on shipping costs. Apple, Samsung HTC or Sony have no such advantages. Users can also benefit from savings

High-tech but not revolutionary

Another factor is that Chinese mobile phone manufacturers have not adopted the latest and best mobile hardware. They are more concerned with cost-effectiveness. If you browse websites selling Chinese smartphones, you may see some highly concentrated phones, but the price is much lower than the Samsung Galaxy S6. Galaxy devices use higher quality accessories and are therefore more expensive.

In many cases, Chinese mobile phone manufacturers will choose MediaTek's processors. The chip may not be the same as Samsung's Exynos, but the price is much cheaper. In addition, MediaTek is also a Chinese company, so logistics costs are also very low.

As for running memory, Chinese manufacturers will not use DDR4 memory, and many of today's flagship phones use this configuration. Instead, they all use high-end DDR3 produced by Chinese manufacturers, and the price of such memory chips is even lower. Many companies have chosen Sony's imaging sensors, mainly because Japanese companies like MediaTek can also provide good value.

Chinese smartphones usually use display screens made in South Korea or Japan. Although the picture quality is slightly lower than the IPS or AMOLED panel, the price is lower. As mentioned above, this is a manifestation of cost considerations.

Focus on online sales

E-commerce is the preferred method of sales for Chinese manufacturers. Apple or Samsung spend a lot of money to build their own stores, which also has a lot of money. For example, when someone purchases the Galaxy S6 Edge, they not only need to pay for the mobile phone, but also need to pay for the logistics costs as well as the opening and operating costs of the store. China's smart phones are usually cheaper because the company's daily expenses are relatively low.

Low-cost marketing

Have you seen the Galaxy S6 conference? Have you heard of Robert Downey signing with HTC last year? Do you know that Sony wants to promote Xperia Z5 in the new 007 movie? These costs need to be taken into account and the end user must pay for it.

Social networking is a less costly marketing method, but the effect is equally impressive. This type of advertising may involve consumers who need good quality, low price handsets. Do you want to buy a smart phone and you don’t want to pay it? Then buy a Chinese mobile phone.

Limited number

Creating product demand is a very effective method, especially in the Chinese market. If people think that mobile phones will be out of stock, they are more likely to snap up. Chinese manufacturers know this very well, so the output of each type of equipment is very limited. Millet 4 mobile phone inventory only sold in 37 seconds.

Sales accessories

Chinese manufacturers generally have lower profit margins for smartphones, so they usually increase sales margins by selling accessories. The most common accessory is the phone case, but millet and other manufacturers even sell shoes and slippers.

Can you imagine Samsung selling the Galaxy S7 for $350 and earning a profit by selling shoes, selling clothes or even selling underwear? Although some people will laugh at it, it is because of these additional products and services that Chinese manufacturers can sell mobile phones at a low price.

This is good, but will the product quality be discounted?

Until recently, smart phones in China were synonymous with low prices, but this impression is gradually disappearing. Although these products do not use the highest-end materials, they no longer use the worst materials. With aluminum cases and good performance, it is not uncommon for Chinese smartphones to stay below $250.

There are indeed many better smartphones. However, these devices can fully comply with Internet browsing, information exchange and various media consumption requirements. They also have their own shortcomings, Android skin is sometimes very bad, and some devices can never upgrade the Android system. However, if you are an Android user who does not want to spend too much money and does not want to upgrade quickly, you should give a chance to a Chinese smartphone. For more information please see johnalexpro's review

Reasons for Cheap Chinese Mobile Phones

Edward Couler

I am Edward Couler living in HongKong. Working at HKBusinessbook since last 5 years. I am loving personality, an expert. I like to mine interesting news and be passionate about the team.

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