Summary of As Profits from Low-Price Strategies Keep Dwindling, China’s Smartphone Market Is in for an Overhaul

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As Profits from Low-Price Strategies Keep Dwindling, China’s Smartphone Market Is in for an Overhaul summary
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Until recently, a low-price strategy worked just fine for China’s domestic smartphone manufacturers. But as the market begins to saturate, more and more Chinese consumers are willing to spend extra on additional functions and better quality as they replace their old phones. As a result of this “consumption upgrade,” China’s smartphone manufacturers are looking to re-establish their brands in the higher-end market. Beijing Business Today reporter Jin Chaoli explains how these companies are trying to tackle their competition. getAbstract recommends his article to marketers and anyone interested in Chinese consumer trends.

In this summary, you will learn

  • What trends are shaping China’s smartphone market and
  • What the future holds for China’s smartphone industry.
 

About the Author

Jin Chaoli is a reporter for Beijing Business Today. Sponsored by Beijing Daily Newspaper Group and issued nationwide every weekday since 1985, Beijing Business Today is the most-read economic publication in Beijing.

 

Summary

Get rid of the low price tags and start selling to people who are willing to spend more. That’s the strategy China’s major smartphone manufacturers have adopted as of 2017. Technology company Xiaomi, for example, gained popularity among Chinese consumers with low prices and high configuration during the smartphone’s boom years. Now the golden Mi 6 with standard configuration costs ¥3,999 [$590] – a far cry from the ¥1,000 to ¥2,000 Xiaomi’s phones cost when Xiaomi first established itself in the market. Huawei, Xiaomi’s main competitor, topped the sales chart in the first quarter of 2017 with its sought-after brand Honor. Riding the wave of mounting prices, too, the Honor V9 now can set a consumer back as much as ¥3,499.

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