Tuesday, 20 September 2016

How Chinese companies manage to launch smartphones at so much cheap rates?

           Motive of Chinese companies
         
Earlier in the smartphones market there were only few players such as Samsung, Apple, LG, htc, Motorola, Nokia and a few  more. They were only, who made smartphones and sell them in market. But from the previous two or three years there is a drastic change in smartphone market. Many new players have entered this market worldwide such as Micromax, Xiaomi, intex, Lenovo, One plus, oppo, Gionee and many more. And the most prominent among them are Chinese brands such as Xiaomi, Lenovo, oneplus, leeco, Asus, meizu etc.

Chinese companies have made a very big drastic change in the market by launching very good smartphones at a very cheap rates.
So now various questions arise in our minds, how do they manage to launch these smartphones at these rates? Don't they face loses?
How do they manage to sell such a huge amount of smartphones?
Why don't other companies like Samsung don't launch smartphone at same rates with identical features?
I would like to answer your questions in this after which all things will be clear to you. So let's get started........

Let's take the example of Samsung, Samsung is a really big player in worldwide mobile market. Since a decade it is making very good smartphones and launching them in market. It has made a very good position in the eyes of consumers. So Samsung also want to build perfect smartphones for it's consumers. As a result Samsung spend a lot of money to build a good phone so as to remain it's position.

Samsung spend a lot on optimisation between the phone's software and hardware as to provide smooth performance. It also spend a lot on advertisement by hiring many superstars in it which attract more customers. Samsung has to recreate best engineers and workers to work in their company so there salaries are also higher. Samsung also spend very much on it's management department. Samsung launch smartphone in every price segment starting from around 8000 INR and goes upto 60000 INR. The best smartphone produced by Samsung among these price segment are flagship one's which cost above 50000 INR. It's flagship smartphones are the best among all other flagships. So to provide such a great smartphone it has to spend a lot. The Samsung's AMOLED display are famous all around the world so to produce these displays it has to spend a lot. It's flagships also has a very premium design, so it's design team should be also among best. These companies sold their smartphones through online as well as offline mode. After sales servicesl of these companies is also very good as you can easily find their service centres in every part of the country.

Now take the example of a Chinese smartphone brand such as Xiaomi. Xiaomi from last two years are producing very good phones under cheap prices. They are producing very premium smartphones which looks costly.
So why are they cheaper?
These companies don't look towards optimisation with that much care. They just simply take processor and put it in their smartphone, they don't bother about optimisation between software and hardware.
These companies also don't do something new they just copy the companies like Samsung, HTC, Apple etc. so they don't spend much in research and development.
These companies also have some quality control issues. All the units may or may not be equal in equal in quality.
These companies also don't spend much in advertising.
They also occupy their employees with lower salaries than other and don't even give that much facilities to them.
There after sales service is not that much great because they have very few service centres.

But it doesn't mean that Chinese companies produce bad products. It has produced one of the best phones in that price range such redmi note 3, one plus 3, redmi note pro, Lenovo moto g4 plus and many more. There price is only less there is not that much difference of a chinese device from a Samsung device or any other company like that. One plus 3 is proved to be one of the very smooth smartphones even faster than Samsung Galaxy note 7. So Chinese devices are also good.



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