Chinese Smartphones are now priced close to Samsung’s

Chinese Smartphones are now priced close to Samsung’s

Chinese smartphones were once labeled as low-priced alternatives to Samsung and iPhone models.

Whilst we still have various kinds of valuable Chinese smartphones in the market, the quality and prices of these Chinese smartphones have boosted in recent years.

Xiaomi and Meizu still target on the low-end and mid-range markets, other brands like Huawei, OPPO and Vivo are gradually raising the average selling price of Chinese smartphone companies.

Many of the Chinese smartphone companies managed to contribute innovation to the sluggish smartphone market and are no longer replicating Samsung or Apple models.

Xiaomi-Mi-MIX

For instance, Lenovo released its first Tango-enabled phone, the Lenovo Phab2Pro, and Xiaomi triumphantly brought dual curved display design to the affordable price range with the Xiaomi Mi Note 2. Also, the Xiaomi Mi Mix is one of the most radical smartphones in recent times.

Steadily, these Chinese smartphone producers have transformed themselves from low- priced phone makers to innovators, bringing out innovative products and pricier smartphone models which contribute to better profitability.

A report from Strategy Analytics, depicts that the average selling price of Chinese smartphones in 2016 was near behind the average selling price of Samsung smartphones.

avg-selling-price-chinese-phones

As illustrated in the bar chart above, the bar in gray represents the avg. selling price of the company in 2015, while the ones in tones of blue are of the first three-quarters of 2016.

Apple’s avg. price is way greater than its Android rivals, $617 for Q3 2016. While Samsung’s avg. price was $222, with Vivo very close behind at $218, which credited to the sale of its costly models like the Vivo XPlay 6. OPPO and Huawei have an avg. selling price of $186 and $148 in the same period.

The avg. selling price of OPPO and Huawei dropped a little in this period, however both OPPO and Huawei managed to increase their market share aggressively in 2016.

OPPO-R9

The OPPO R9 managed to hit great sales in 2016, whilst Huawei’s low-end and high-end modelshad together improved the company’s shipments and profitability.

According to Chung Hae-sik, an analyst at the Information Technology Promotion Center (IITP), Samsung seems unlikely to raise its avg. selling price this year in order to retain its majority market share and regularly check on its competitors’ strategies.

SOURCE