Rise of the China smartphone industry and all its benefits

Elliot Rhodes

Chinese smartphone manufacturers have in the recent past been giving Fortune 500 tech companies such as Apple and Samsung a run for their money.

Chinese smartphone manufacturers have in the recent past been giving Fortune 500 tech companies such as Apple and Samsung a run for their money.

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Notable companies that are based in China include Lenovo, Xiaomi, Alcatel, and Huawei.

In particular, Xiaomi and Huawei are currently selling more smartphones in developing economies than Apple and Samsung.

LG Electronics of Seoul, South Korea, is already struggling to catch up with most of the Chinese companies. And if a report by Strategy Analytics is anything to go by, China produced 10 out of the 17 fastest-growing smartphone companies in the world in 2018.

Clearly, the country’s smartphone industry is out to take the tech world by storm.

China offers a quite challenging market to penetrate.

However, for any company trying to set up a company in China, there are companies that offer their guidance and expertise which guarantees success to companies.


What is the secret?


The Chinese smartphone industry is growing consistently partly because the government has invested substantially in China’s digital transformation.

For example, unlike most phone makers from the West, Chinese manufacturers don’t have to pay intellectual property royalties to their government when they sell their products in the local market.

That means lower overhead costs, enabling these companies to sell their products $20 to $40 lower than Apple and Samsung.

On the other hand, China’s labour market has many highly qualified tech experts who are always ready to provide the smartphone industry with low-cost labour, consequently helping phone makers maintain their manufacturing costs at the minimum.

Without a doubt, smartphone makers in China have a leg up in East Asia and most of the developing world such as Latin America and Africa.

And, because the nation has a population of approximately 1.4 billion people, the local market by its sheer size is enough to give local companies a headstart in the global smartphone market.


Benefits of industry growth


One thing that Chinese phone makers have succeeded tin doing is to break the myth that for a phone to be affordable, it has to be of poor quality.

There was a time when people were avoiding products from China because they were made to believe that they were of shoddy.

The world is now taking notice of the good quality phones that are coming out of China – and a good number of smartphone users are opting to buy from Chinese brands as opposed to rather expensive South Korea and US-based brands.

If people are yet to realise the benefits that come with owning a Chinese smartphone, here are them of them.


  1. 1. Everyone can now afford a smartphone

Unless money is the least of your problems, price is one of the vital considerations you make when shopping for a smartphone. The pricing of a smartphone is as important as the features with which the smartphone comes.

That being said, if you are to compare an iPhone 6 from Apple with a Xiaomi Mi5 smartphone, for example, you realise that the two have almost similar features, yet Xiaomi Mi5 is more than $400 cheaper. If not for anything else, Chinese companies are making it possible for low-income earners to enjoy the smartphone experience without having to break the bank.


  1. Great design and innovation

As  mentioned, Chinese phone manufacturers are making high-quality phones and selling them at affordable prices.

The design and innovation coming out of this industry is amazing to say the least. People who have seen the latest Oppo, Nubia, and Xiaomi products say as much. Their in-built features are great, the designs are splendid and the hardware is of the best quality imaginable.

Although LG, Apple, Samsung, and other brands are manufacturing quality phones, their innovation seems to have stagnated for a long time now. Their products aren’t as exciting as those coming out of China.


  1. Smartphones from China do not come with pre-installed ‘bloatware’

Bloatware (the third-party apps that are preinstalled in most smartphone apps) are rare in Chinese smartphones, so their RAM has a lot of free space.

And, unlike the bloatware that cannot be uninstalled, the few pre-installed apps that Xiaomi phones come with, for example, can easily be uninstalled.


In Conclusion


If an international corporation is seeking to penetrate the Chinese market, it is imperative that it understands the China digital transformation beforehand.

While at it, ensure the corporation should consult a professional employer organisation in China to help with the hiring process.

Lastly, it should hire the services of a translation company to help with localisation plans. With those three steps, a company will have an easy time knowing its Chinese customers and understanding the country’s business culture.

More to read: Company Registration in China

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