Why are Chinese phones cheaper compared to flagship phones

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Chinese phones are ruling the era right here right now. But are the Chinese phones are really reliable? Are Chinese phones really good? Why One Plus, Meizu, Xiaomi phones are cheap? And why are Apple, Samsung, Sony phones are costly?

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Transportation cost and quality

Have you ever wondered about this? Apple, Samsung, Sony are costly, are they cheating us? One of the main reason for Chinese phones being cheap is cheap labor available in china. It has the lowest cost labor force in the world. Moreover Chinese brands have locally available raw material and got an advantage of having phones build locally, hence all transportation cost reduces. While brands like Apple, Sony, and Samsung are not building their phones locally, hence transportation cost goes high, which increases allover cost. And savings of transportation cost by Chinese brand is been rewarded to their customers.

Processors

Also Chinese branded companies uses low quality raw material. Which leads to quantity rather than quality. For example let’s take processor in account. Chinese branded phones are preferring Mediatek processor rather than choosing Samsung’s Exynos units. As Mediatek is also a Chinese brand so it is available with cheaper rate and no transportation cost.

Moreover they’ll prefer Chinese branded DDR3 processors rather than choosing high quality DDR4 ones. They’ll also choose cameras of Sony as they are available locally.

Distribution strategy

Now when it comes to marketing, brand like xiomi are preferring e-commerce over physical marketing. Now you’ll wonder how it reduces the cost. Yes it reduces the cost, because when we buy Samsung galaxy edge 6, we are notonly paying for phones cost, but we are also paying for taxes, distributor’s profit, retailer’s profit and so on. While this all is not included in e-commerce.

Marketing strategy

Another aspect saving cost is marketing. Samsung, apple, are the company’s marketing with Bollywood and Hollywood stars. Now this stars are not going to advertise for free. Hence this charge is also being bared by consumers. While Chinese brands are doing cheap and effective marketing using social network.

Also sales method makes a huge difference, this Chinese brands are having limited stock so they are also creating artificial scarcity, which helps selling their products at a higher demand. These manufactures are having low profit margin. Also they often even offer free accessories like phone covers, screen guards, etc. to their customer to attract them.

Some Indian branded phones are having their hoardings all over the city and market, which causes a high rise in total cost of phone. Now when this Chinese brands produce artificial scarcity, they create great demand for their product. Hence due to which people are attracted to buy the same features at reasonable prices, which are really lower than that of Apple or samsung products. Also this phones are boon for middle classed Indian prices public, as they are getting same features at lower rates.

But when it comes to quality, definitely it has the lower quality as they are not using higher quality raw materials. Software in this phones are also slower than branded classy phones. Now you are there more smart to judge Chinese phones are cheap or cheat.

Hence before buying any of the phone one must keep those above mentioned points in mind to have a quality based phone, rather than wasting money on quantity based phones.

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