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Why are Chinese phones so cheap?-Hi-tech fashion

Saturday, April 16, 2022 12:29 PM (GMT+7)

When thinking about buying a new smartphone, the first two names that come to mind are Samsung and Apple.

The two tech giants are long-standing business rivals, known for driving technological innovation with their cutting-edge products and services. But as new Chinese brands enter the tech sector, competition is skyrocketing like never before with new challenges, opportunities and concerns emerging.

Chinese smartphones are very cheap, making many people wonder: How can they do that? Here’s the truth behind the sudden explosion of Chinese brands and why more people should care.

BBK Electronics Empire

Many of us have probably heard of at least one brand among OnePlus, Oppo, Vivo, Realme and iQOO, especially in Asia. All of these emerging brands are subsidiaries of BBK Electronics – a multinational corporation based in Dongguan founded by Duan Yongping. By bringing together all the products under BBK’s subsidiary, this multinational corporation has become the leading manufacturer of smartphone largest in the world in the first quarter of 2021, surpassing even the most famous technology giants.

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BBK may not be a globally famous name, but its sub-brands are marking their territory in the tech world. In fact, the subsidiaries’ sub-brands are also becoming completely separate independent companies. For example, Realme is a previous sub-brand of Oppo, while iQOO is a sub-brand of Vivo – have all become independent. These subsidiaries may seem distant in theory, but they communicate and collaborate closely: sharing ideas, expertise and strategies.

Talents of Chinese smartphone manufacturers

When looking at the big picture, users will realize the genius behind these Chinese phone manufacturers. Today, the more sub-brands in the market communicate and share resources and expertise with each other, the easier it is to avoid losses. This is because one brand that achieves success can cause the rest to fail.

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This is probably one of the biggest reasons for BBK’s resounding success. To understand how BBK is changing the tech industry, it is more convenient to view their sub-brands operating in a unified fashion or as separate entities. To see more clearly, there was a time when the total market share of the three BBK subsidiaries Oppo, Vivo and Realme reached 25%, beating Samsung at 22% and Apple at 17%, while Xiaomi (also a Chinese company National) is 14%. Also, don’t forget OnePlus’ market share, which is small but still enough to help BBK become the world’s largest smartphone manufacturer.

If you notice, Xiaomi and BBK both follow the same strategy when entering the market: divide and conquer. The same is evident with Xiaomi’s sub-brands such as POCO, Redmi and the Xiaomi-owned Black Shark – all geared towards serving a specific audience and a specific purpose.

In the case of BBK’s brands, Oppo and Vivo are positioned as innovative brands, i.e. those that invest in R&D and launch new technology. OnePlus is positioned to provide a premium smartphone experience at a competitive price point. Finally, Realme is positioned as a budget-friendly brand for price-conscious buyers.

How Chinese brands compete with tech giants

Most Chinese brands seem to be aiming for a very specific goal: to sell large quantities of value-for-money products to price-conscious buyers to build authority. Of these, there are three key elements to keep in mind: customer service, strategy, and messaging.

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Customer service: smartphone buyers are getting smarter as they have the tools and knowledge they need to get the most out of their money, especially in the hyper-competitive Asian market. Especially among these is the selling price, so Chinese brands cut prices to stifle competition as they enter new markets.

– Strategy: With a huge population of Asians, Chinese brands decide to sell their devices at a small profit, but selling in large quantities will bring better profits. For budget brands like Redmi or Realme, profiting on hardware is not the goal but instead they profit from built-in ads and pre-installed apps. To popularize their phones, they hire celebrities to PR equipment as well as sponsor events.

Message: One of the biggest advantages of having multiple sub-brands is that each brand can be used to create, market and exploit a unique brand image. Take OnePlus as an example. When it first started, the company positioned itself as an enthusiast brand with catchy taglines like Never Settle, or Flaship Killer. The company listened to feedback and made changes to its products: all delivering a premium smartphone experience at a great price. Although up to now, this company has made premium products at premium prices.

Should I buy a Chinese brand phone?

Chinese brands may not be everyone’s first choice, but in a fast-growing market like India, they are marking their territory pretty quickly, so much so that they are eliminating other brands. international brand and completely eliminate domestic competition.

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The problem is, to own these Chinese smartphones, especially the budget phones, it’s hard to get rid of the built-in adware and bloatware, which eat up memory and lead to the OS experience. worse overall.

On top of that, there is a growing concern in the tech industry about Chinese brands spying on their users, like the Huawei ban in 2019. Because of the great value Chinese brands are providing , which is something to consider if a user is thinking of making their purchase.

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