Probably many of you have been wondering, how the Chinese manage to make such cheap phones. Let us discuss this topic.
Cheap Phones from China. What Is the Secret?
Surely you immediately have an idea. But if you think that gadgets are made from non-quality materials, then you are partially wrong, one manages to save not only on materials. And some companies do not save on them at all. Mysteriously, is not it? So, let us look into below, why the Chinese phone costs so little. By the way, not only Chinese phones are characterized by low cost and good quality, but also essaysfrom greatpaper.co.uk.
China has always been a producer of cheap products, but over the past few years, phones with the most typical characteristics at a ridiculous price have come onto the market, and this is happening against the background of expensive devices of well-known, well-promoted brands. The difference in price reached absurdity, the Chinese phones turned out to be two or even three times cheaper than other famous models.
At the same time, these phones had first-class characteristics that were not inferior to their more popular “colleagues”. So what is the deal?
Fewer Costs – Lower Price
First of all, such a company as Xiaomi earns primarily on the sale of accessories: covers, headphones, etc. Secondly, Xiaomi has it own built-in application store, which sells both usual applications and games and images for desktops, call melodies and themes.
Such sales of content and accessories allow it to sell smartphones without extra charge, at prime cost. As an exclusive, the Xiaomi company is a subsidiary of a major manufacturer of Qualcomm processors, that is why it gets processors at a subsidized price, which certainly also affects the final cost of its phones.
The second aspect of the cheapness of the Chinese smartphone is its limitation. In order to actually buy Xiaomi or OnePlus phones, the client will either have to use the official online store or buy through an intermediary company.
The cost of the e-commerce site is much smaller than the financing of hundreds of physical stores across the country, or even the world, and these savings again affect the final cost of products.
Social Networking and Marketing
Large companies spend many millions of dollars a year to keep their products at the peak of popularity and drive into minds of consumers that they want this particular brand. TV advertising, billboards, sponsorship and support from celebrities are extremely expensive and add the lion’s share to the cost of the gadget itself.
Xiaomi, OnePlus and other similar companies all use network marketing to promote their products. Using free services on social networks such as Facebook, Twitter, Google+, etc., saves a lot of resources. These brands were able to use viral marketing to become very popular in a short time. In this way, perhaps the most expensive and difficult task is to find someone with creativity and right mindset – a good marketer.
Low Production Volume
The production of smartphones in limited batches allows to significantly reduce costs, and even improve quality control. And a positive side effect is added to this – the inaccessibility of the gadget makes it an exclusive.
If the company produces only 10,000 phones, it will allow selling all the devices as quickly as possible, and the company does not need to rent the warehouse for several months. In this case, the risk of loss of finished products (theft, fire, inaccurate treatment) also decreases.
Accessories, Applications and Services
Going back to the topic of selling accessories, let us say that many Chinese brands have already taken over this trend and continue to manufacture covers, protective films, cables, batteries, and even lifestyle and clothing products. Therefore, even earning a little on phones, companies do not remain losers.
Another way of making money is to provide services integrated into the phone’s firmware and even sell applications in alternative markets.
Although many people do not like these methods of making products cheaper, they really work, and we can get cheap phones with the most top characteristics.