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  • Category: Miscellaneous

    Why do we prefer Chinese smartphones?

    Not only for India but for the whole world China is a big market and the biggest exporter of mobile phones. But how much profit they gain by selling a smartphone in India? And what percent of profit does India get in a sale? When India has so many brands of smartphones why everyone prefer Chinese smartphones? Why Chinese brands are in the top position among smartphones in India?


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  • #699934
    I think they get a huge difference. This I guess from the contiguous and flashy advertisements and shows put up by the mobile sellers and the eagerness and earnestness by the mobile vendors to promote the Chinese brands. The vendors get good commission and incentives that is why they are enthusiastic in promoting the Chinese mobiles. So the Chinese companies also may be getting good profit.
    I don't know how many of them original work of research and design is. A few years ago I was using a Chinese mobile. It had some good features, and came with a very cheap price. When I had to select the model of the device for adding a new software/app it selected a model of a reputed brand. Then it struck me that the device was an unauthorised duplication or copy of that reputed brand. That is why the phone could be sold cheap. Using iron fist China gets high productivity and cheap labour which enables them to sell at cheap prices and give high incentives. But, for most Chinese products after sales service and durability are questionable. Many of them are use and throw type.

  • #699937
    In 2016 a Noida based company Ringing Bells pvt ltd launched the
    Freedom 251 as the Cheapest Smartphone in the World, which Cost Just Rs. 251, the device featured 4-inch display, 1.3GHz quad-core processor, 1GB RAM, 8GB internal storage (expandable up to 32GB), 3.2-megapixel back camera, 0.3-megapixel front camera, and a 1450 m Ah battery.

    Online order was also taken by the company from the buyers but what happened with the company I don't know but it was heard that RBPL was enmeshed in several court cases and the company stopped to supply the phone in the market.

    It was just a glimpse for the users that how much profit mobile phone companies earn.

  • #699940
    China's smartphone market is very big. They sell in lakhs and if they get just one or two dollars for phones also, they can make lakhs of dollars. Here the question is not the profit. There are many other issues. They earn a lot of foreign exchange and the government will gate money in the form of sales tax. Is that not an income to the China government. Profit may be going to the company manufacturing but the government will get good money in the forum sales tax and export tax. This money also we have to pay as the cost of mobile phones. China is exporting many other items in addition to cell phones. We are even purchasing firecrackers from them. I don't exactly how much business they are doing with India. But it will run to crores of rupees and our foreign exchange to that tune is going away. One should remember this also. If we promote Indian companies, there is no involvement of foreign exchange and our money will be in our country only. The profit also will go to our Indian company and taxes will go to the Indian government only.
    drrao
    always confident

  • #699946
    In India, if a large 1.5 litre coco-cola bottle whose manufacturing cost is less than Rs. 5/- can be sold at Rs. 90/-, making a profit of Rs. 85, Imagine what would be the manufacturing cost of a Mobile phone that costs many thousands. I am sure, China must be making `huge money through the sale of Mobile phones. An item worth Rs. 100/-in China must be costing Rs. 3000/- in India. Chinese are very active and smart. They don't remain idle and lazy. Industrially, China is far superior to India. Chinese make money in India, while Indians spend money on China.
    No life without Sun

  • #699955
    Chinese are aware of boosting their sales. However, their products have lot of demands because of heavy discounts by their manufacturers. They can go to any length to boost up the sales of their products. Materials are cheap in the Chinese market because the manufacturing cost is less due to cheap labour availability. They can make huge production at the same time. They can flood their products in the Indian market be it steel, mobile product or firecrackers.,toys etc. Their aim is to block the sales of the Indian products because the customers would run after the Chinese products due to its cheap cost.
    However, not all the products produced by China are attractive and useful except the mobile phones which offer satisfactory services for a pretty long time.

  • #699966
    China has the capacity to produce low cost products. It may be mobile or a toy played by children. You can trace a minimum of ten products in a middle class family. There is no family in India without at least one product of China. Starting from calculators used by students, the hair trimmers, hand torches. There are many popular products which are available in plenty to be named in India.
    The main software technology still remains in their hands as they upgrade the minutes also get upgraded by updates done over internet. They get more than 75% of the cost value as profit. This helps in to invest in diverse products.

    Lead the leader

  • #699968
    Chinese companies work on mass production and supply their product on less profit-margin in the international market. This way of the business has rendered them to have monopoly against all their competitors. They provide good quality products at minimum rate, consequently
    influx of Chinese products is seen everywhere. It's said that China renders the loan to countries and spend money on infrastructure there which renders them opportunity to expand their business easily.

  • #699985
    What I feel that China knows the weakness of the world in particular and India in general as we are fond of new gadgets and they are masters in producing many new items and as they produce more the cost of production would be far less and they sell at huge price for others and India. And we the people are fond of new gadgets and new features and even go for high end varieties. Surely China would have been earning 50 percent profit on each product it sold to India and the demand is ever growing. Now is the time to show the door for China products as we should totally shun their products and bring them on the road.
    K Mohan @ Moga
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease


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