Chinese phones are invading the world with it’s low price and high specs. If you use a Chinese phone then you would be surprised to know how well they work with a very fast speed at a very cheap rate. Do you think Chinese manufacturers are giving these phones for charity at such a low rate ? checkout why are Chinese phones cheaper. We are gonna be looking at 5 reasons.
1. Cheap Labour
One of the most common reason why Chinese phones are cheaper is because of easy availability of labourers 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.
2. High level Of Technology But Not Revolutionary
One main factor is that Chines manufacturers don’t do packing of phones with greatest and very latest hardware. They are more focused on balancing the balancing price with performance. If you notice a website selling Chinese phones then you will see smartphones with reasonably high-end specs, but cost a lot less than a Samsung Galaxy S7. Samsung basically uses high quality parts are quite expensive in the market.
A lot of Chinese manufacturers use Mediatek processor, these processors are not upto mark as samsung’s Exynos units and are very cheap in price. Cherry on the cake is that Mediatek is a Chinese company so local distributors get all products at very less price.
Chinese manufacturers done don’t use the latest DDR4 RAM and instead use DDR3 modules. Chinese phones have Japanese or Korean display which is very cheap and of low quality as compared to AMOLED or IPS panels.
3. Entire Focus On Online Sales
Chinese manufacturers prefer selling products on e-commerce 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 it 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 stores.
4. Cheap Marketing
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 million dollars on TV advertising, sponsorship, or hiring celebrities to promote their products.
5. 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.