Why Chinese mobile phones are so Cheap?

There are so many mobile phones companies which affected by Chinese companies. I don't know why Chinese mobiles are so cheep. Because if you calculated the cost, it is equal to traveling experiences from China. In simple words, if suppose I ordered empty box from China, the traveling experiences will be nearly same as mobile phone's price.

 

The Chinese have for sure earned their stripes on their cheap smart phones. Surprisingly, theses smart phones work very well and yet very low prices.

There must be some factors that lead to them selling these phones cheap. Come to think of it, Chinese don't own stores but sell online. Don't you think this is a major way of saving? As a matter of fact you would hardly see a high end Chinese phone advertisement on your TV. They market their products cheaply on the social media.

Most manufacturers find it easy to create their products in China because of their cheap labour. All these little savings here and there will be finally passed on to the customers in terms of a cheaper phone.

 

The majority of companies nowadays decide to manufacture their products in China for several reasons, for which i will list a few : cheap labor, less regulated laws, lower taxes and so on. Now to answer your question in regards to why are Chinese mobile phones cheap it's because they use low quality materials and components that allow them to reduce the cost of manufacturing and to save up a lot of money that can be used for advertising the product. But there a few respectable companies such as Lenovo, ZTE, Huawei and Xiaomi that are capable of competing with the well known brands.

 

In my opinion, Chinese phone brands have managed to use E-commerce to their advantage. The cost of opening, running and maintaining physical stores is eliminated when you use these E-commerce sites. The amount of physical stores is really small when compared to the Chinese phone makers available in the market. This allows them to offer mobile phones at a very cheap price.

 

They can mass produce cheap components and source products right from their own country from other companies if needed. They have teams of people dedicated to copying new phones as soon as they come out. Sometimes people put an idea on Kickstarter, and it is made in china before the original person gets his or her funds. That's how fast they are. China's labor costs are low, part costs are low, and shipping in bulk creates an easier way to manage that cost as well.

 

Chinese phones are so cheap that's because almost all of the workforce of electronics industry is in China, even Iphone manufacturing plants are in China, that's why parts and other accessories can be bought via wholesale or retail, I have heard or read an article if I'm not mistaken that a man has made an Iphone out of Chinese electronic parts and costs him much lower price than the finished form of Iphone, and that's not an imitation it was the real Iphone but it was just an assembled one.