Why Chinese made phones are cheaper?
People used to think that Chinese phones are low on quality but that perception is dead. It is true that China phones are not made of high tech quality but they are also not made of poor quality material.
If you are an android user and don’t want to spend much on smartphone then you should give a look at Chinese phones.
Here at www.NonStopEcho.com, we have made a list of factors those made Chines smartphones cheaper.
Low profit margin:
Chinese brands get very less profit from the units they sell as compared to world’s most valuable brands like Apple and Google. Xiaomi and OnePlus are examples of those companies who are just working on to get market share.
R&D(Research and Development)
Tech giants like Apple, Google and Samsung spend crazy amount of money on R&D which is not the case for Chinese phone manufacturers. You won’t find anything new or innovative apart from high specs in Chinese smartphones.
Produce Limited quantities:
The best selling method that works in China is creating the demand for product then sell it. It is mentality of people that if a certain product will run out of stock, they’re more likely to rush to buy. Xiaomi Mi4 is a China made phone and it was exhausted in just 37 seconds on Flipkart.
Brands like OnePlus and Xiaomi spends very less on marketing when compared to established phone brands. You won’t find their official stores and service centers rather they sell their smartphones online.
Chinese phones company know how to make use of social network marketing in the Internet. We cannot deny that Instagram, Facebook, Twitter, Weibo, etc. are the most popular social networks that has a large number of followers. As a result, the information about the smartphones can be spread widely if they advertise their products here. Meanwhile, some famous brands such as Samsung, Sony or Apple have to spend millions of dollars on TV advertising, sponsorship, or hiring celebrities to promote their products.
Focus on online sales:
Chinese manufacturers prefer selling products on e-commerce sites as it is the booming technology. Companies like Samsung and Apple have spent it’s fortune in building their own stores. So basically when you are buying a Samsung or Apple phone you are not only paying to the company but its distribution and for the cost of running and maintaining the store. Chinese phones are cheaper as it is not of one specific brand and does not have a physical store.
One of the most common reason why Chinese phones are cheaper is because of easy availability of labor at low cost. China has lowest labor costs in the world and this is the main reason why a lot of manufacturers build products there.
China does not have strict patent rules and regulations. Anyone is allowed to make any product and allowed to sell in any market.
Cheaper Low Quality Parts:
Chines companies using almost same parts those are being used by big brands like Apple and Samsung. The big companies are very quality conscious and they use zero defect standards lots. Chines companies buy from same supplier but parts are sorted with lower quality rating.
Almost all Chines companies do not provide direct customer service which is a big money saver. Apple and Samsung spend billions of Dollars in customer service.