The market now has been flooded with a lot of smartphones from China luring customers with their high specifications and low price. If you have used one before, you will agree with me that they perform awesomely but cost so little. But wait a minute, are these Chinese manufactures
philanthropists or charity organizations, giving out high specs phones with low price or is there any other reason why this is happening? Read on and you will know why.Cheap Labour
The amount spent on labour force in producing a commodity directly affect the overall price of the finished goods. In the world today, China provide manufacturers with a very cheap labour that is why most companies in the world manufacture their products in China. Brands such as the iPhone, Samsung etc. are expensive to purchase due to high labour cost and many other reasons.
Hardware
In the course of production, Chinese manufactures adopt the use of less expensive hardware for their products. They are more interested in balancing price with performance. This does not imply that they use less quality hardware, but use hardware that is not really the latest available.
When you browse any Chinese online market, you will come across smartphones with reasonably high specs but a lot less than Samsung s8. Samsung uses parts with more quality which costs more. In most cases, Chinese manufacturers prefer to use MediaTek processor than snapdragon for instance, because it’s cheaper.
A Chinese company when choosing a RAM for their product will prefer to use DDR3 as it is cheaper than DDR4 in building their devices.
Method of Selling Product mostly E-Commerce
Most Chinese manufacturers prefer selling their products through E-Commerce. Companies such as Apple or Samsung have spent a lot of money building their own physical stores. So, whenever a person buys a product, for example, Samsung Galaxy S8, the cost of other services are included in the price of the mobile phone. Customers pay not only for the phone but also for the distribution cost and cost of running the physical store.
Chinese phones are cheaper because they don’t have the same overhead as brands that have physical stores.
Marketing Cost
As said earlier, the cost of distribution is added to the actual cost of the phone. Top brands such as Samsung and iPhone invest a lot of money in marketing their product. It costs them a lot of fortune to market as they advertise their product even in movies and more. Customers pay for all the cost of marketing/ advertisement.
You can hardly see a Chinese manufacture spending such huge sum of money in adverts, instead, they prefer to advertise on social media as it is a lot cheaper and they can reach a lot of potential customers. In most cases, the amount you spent buying a Chinese made smartphone is just a little above the cost of production.
In case you want to buy a smartphone without ending up paying for marketing, distribution, and cost of running a physical store, you can go for Chinese products.
Do you have other reasons as to why Chinese smartphones are cheap? Let us know in the comment section. Don’t forget to share.
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