Chinese smartphones, they’re beautiful, they’re powerful, and of course, they’re cheap. So, why are they so cheap like that? Here are five reasons why!
Cheap labor force + components
The first and the main reason why Chinese smartphones are so cheap is the labor cost. The labor cost in this country is very cheap. This 1.3 -billion population country is considered the world’s factory thanks to its cheap workforce costs. Chinese smartphone brands can use the domestic huge cheap workforce, which means they can reduce the logistics and transportation expenses. Therefore, their smartphones charge very low.
The second reason is the cheap components. Despite being cheap, they’re still strong enough. You can see that most Chinese smartphones feature the MediaTek processors which are manufactured domestically. Again, this will reduce the additional expenditure. As for the RAM, the companies don’t use the latest RAM- DDR4. Instead, they equip RAM DDR3 for more reasonable price tags. For the camera, Sony is a priority as the Japanese companies usually provide good and cheap components.
Third, Chinese brand sell their product via E-commercial. E-commercial is the most popular selling method of Chinese phone brands. While Apple and Samsung spend lots of money for the flashy kiosques, Chinese brands choose e-commercial. Besides, the fourth reason is the accessories. The companies from China usually increase their avenue by selling the smartphone’s accessories. They will sell their products at the cheap price. And of course, these phones will come without the earphones or adapter chargers. So, users must buy them.
Chinese smartphones: wise marketing
The last reason is wise marketing. Some big brands like HTC, Sony or Samsung spend a huge amount of money for their marketing campaigns. And you -the users- have to pay for this expenditure when you buy their smartphones. While Chinese OEMs use a much cheaper way- social media. “Flash sale” is also widely used. The companies will sell their smartphones with a limited edition for a short period of time. So that, the users will feel that if they don’t buy it immediately, that product will be sold out. Now, you can understand why Chinese smartphones are that cheap.