Sunday, 12 May 2013

Why China High-Profile Smartphone Sell Super Cheap?

Currently the only 1-2 million users can easily buy a smartphone running the Android operating system by the Chinese company with the production configuration is not bad compared to the more expensive products large firms.
Android operating system
In fact, many people wishing to purchase smartphone smartphone wonder why many attractive Chinese configuration has such a super cheap price? Whether these products are durable good or not?

Super Cheap Smartphone:

In October last year Viettel has attracted the attention of many users when V8403 smartphone launched by Chinese company ZTE production with the price of 1.5 million is considered cheaper smartphone on the market at that time.

However, the current level of $ 1.5 million for a smartphone was not the cheapest anymore.A few days ago, FPT FPT F2 selling smartphone for only 1.29 million cheaper than the V8403 while the detailed configuration of two similar machines. If you just look at the configuration the FPT and Viettel V8403 F2 is equivalent parameters iPhone 3GS  is worth about 6-7 million.

Up a little bit higher, at $ 2 million range, consumers now have a smartphone options, mostly the phone running Android OS. Samsung and LG also have some form in this price range as the Galaxy Y and LG Optimus L3. 

However, the company's largest product range in the $ 2 million now are less attractive configurations: small screen, low resolution, weak processor, small RAM (typically 256 MB) and runs Android 2.3, has a very old version.

Meanwhile, also in the range of $ 2 million, the user can select the Android smartphone configuration parameters but much more attractive from lesser-known brands such as ZTE, Lenovo, FPT, Q-Mobile, Mobistar or Hkphone.

The big difference between the smartphone brand is strong and cheap smartphone that many people have less money needs to buy smartphone to fret: choose the configuration or choose the brand?

If selected brand products, smartphones usually have configured a very basic level, even if you choose the no-name smartphone from Chinese companies or "Vietnamese brand" configuration will be more attractive.

So no reason for us to still shy with cheap Chinese smartphone?

2012 was a peak year of the Chinese smartphone market. According to market research firm IHS iSuppli the Chinese people have consumed 186 million smartphones in 2012 up 180% from a year earlier. 

Breakneck growth has brought China to become the largest smartphone market in the world, surpassing the U.S.. In 2013, IHS iSuppli predicts China will consume 268 million smartphones. Most smartphones sold in China are now cheap products below 1,500 yuan, due to domestic companies such as Lenovo, Coolpad, TCL, ZTE, Xiaomi, Huawei production.

Thanks to cheap smartphone, Lenovo just a short time after joining the smartphone market has been second place in China in 2012, just after surpassing Samsung and Apple, the company is the second smartphone market share globally , according to research firm IDC. 

From success in the Chinese market, Lenovo and many phone companies such as China ZTE, Huawei, OPPO, Meizu expanding the global market and target mainly the developing markets such as Vietnam, India and Indonesia.

Why Chinese companies such rapid success in the domestic smartphone market? 
Why China High-Profile Smartphone Sell Super Cheap?
The answer is related to the two big names that MediaTek and Android. Google to offer free Android operating system is a very good opportunity for the smartphone manufacturers. But new MediaTek is an important factor to promote the boom of cheap smartphones.MediaTek, a Taiwanese company founded in 1997, initially involved in the production processing chips for DVD players, TVs and phones popular. The company has a very large market share in the general phone market, selling 550 million processor for popular phones by 2011 and 400 million units in 2012.

MediaTek smartphone market participants on quite late. By 2011, they introduced a new integrated microprocessor for smartphones first of Lenovo. But just 18 months later MediaTek has accounted for 50% of the processor market for smartphones built in the Chinese market. 


It has sold 10 million integrated processors for smartphones by 2011 and 110 million units in 2012 accounting for more than half of all smartphones sold in China and surpassing Qualcomm chip manufacturers but leading smartphone ranked second in the Chinese market with 82 million microprocessor.

MediaTek secret of success and also reasons for the widespread development of China's cheap smartphone from solution called "turnkey". Not only simple provide microprocessor integrated, MediaTek longer provide for the phone manufacturers mobile phones designed sample to reference the basic software on the smartphone and even appoint both consulting staff directly for these house phone manufacturers in too process production.

Fabrication smartphone is complicated work more than many compared with universal telephone, requires companies must invest research and development to design, integrated components and Product Testing Last. Apple has lost more than 3 years of research, from 2004 to 2007 was the last to the first-generation iPhone. However, MediaTek and a few companies manufacture integrated chips such as Spreadtrum Communications has made the most of it, making the product almost complete smartphone includes built-in processors and other components of the Basic software.

The support of MediaTek help manufacturers to easily participate in the production of smartphones, greatly reduce the cost and time to develop new phone. In an interview with The New York Times earlier this year, director of handset manufacturers TCL - Wang Jiyang - said: "The support of MediaTek has helped TCL can bring new products to market cases twice as fast.'s work phone manufacturers are only editing software easier to use and to customize the appearance of the phone slightly to differ. "


Not only provide solutions for companies large phone manufacturers such as China's Huawei, ZTE and Lenovo, MediaTek also supports anonymous makers, many of which are manufacturers of counterfeit goods trade firms prestige. According to statistics China has about 100 large and small companies engaged in manufacturing smartphones.

Smartphone cheap production like?Two months ago, the U.S. magazine Technology Review published an investigative article regarding cheap Android smartphone manufacturers in China. According to this news story not as big smartphone manufacturers such as Apple and Samsung are manufactured in a factory cheap Android smartphones in China is mainly made of thousands of small-scale factories.

The companies buying the components smartphone, then transfer coming the production workshop small located scattered throughout city Shenzhen the capital sectors electronics industry of Trung Quoc, to assemble. On average each production line with investment costs of about $ 1.6 million (33 billion) and 35 young workers can be assembled and boxed 3,000 smartphone every day.

Liwan Liang, Director of Communications Xunrui, one of the cheap smartphone manufacturers have relatively large scale, revealed that the magazine Technology Review the cost to produce an Android smartphone just $ 40 including costs the processor's integrated MediaTek about 5-10 dollars depending on the size of the phone screen and other features. The $ 40 smartphone later will retail market for around 65-70 dollars. Average, each day Xunrui Communications can produce be is approximately 30,000 units smartphone so cheap for brands like Konka Mobile or sell for the house network such as China Mobile.

Liwan Liang also said that the goal of Xunrui Communications is producing quality cheap smartphone at an acceptable level. That means that the important component parts of the device as a monitor camera is not the best product.This also for know quality of smartphone Cheap will day increasingly be improved more than by a reason: profit in smartphone Cheap very low because so specific manufacturer also want raise the quality of to push injured effect and prices sell up.

The origin of these components is an important reason to create cheap China smartphones. Results "operating" a cheap smartphone originated from China showed that these products use a lot of cheap components especially components accounted for the highest value as display processor management application or camera. In fact, some cheap smartphone with warranty screen time is very short only about a month.

In summary, the development of the booming smartphone from cheap Chinese elements: offer free Google Android operating system the manufacturer does not have to focus on research and solution development thanks to close such packages from manufacturers such as MediaTek chip and the availability of resources as well as parts factory cheap smartphone. Also cheap is a part of the manufacturers of this smartphone are less brand so easy to sell at a profit.
 

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