How chinese company produce low-cost smartphone

If you were thinking about how the Chinese manufacturers manage to produce low-cost smartphone, Actually I was so interested in this question so I put hours on the Internet to research about this topic and after serious study, I am here with the answer

1. LOW LABOUR COST

China has a lower cost of labor and that's why some of the big manufacturers had established their factory in China but their transport cost make it high which gives an upper hand to domestic manufacturers

2.WAY OF ADVERTISING

As Samsung and apple waste a huge cost of money in advertising but the Chinese vendor advertise through the social media and the internet which give equal results but lower the cost of ads.


3.FLASH SALE

unlike the traditional way of selling smartphone Chinese vendor rely on online marketing through the flash sale and it prevents them from making large showrooms and produce the same result.


4. LIMITED STOCK

The Chinese vendors produce a limited number of a smartphone so the smartphone doesn't get dumped when not sold. just like Xiaomi sell his smartphone Redmi 3s only on Wednesday so they don't have to produce a large number of a smartphone but it also manages to get the attention of customers.


5. BET ON HARDWARE

the Chinese vendors try to manage the cost and performance, they don't go for the best hardware or the latest one, but they manage cost with medium quality hardware like using DDR3 RAM instead of DDR4, MediaTek CPU's rather than latest Snapdragon processor, going for 1080p when 2k is available.

6. SELLING USER DATA

Last but most important,  Chinese companies were always selling user data without permission or sometimes telling you nothing about what they are collecting and sells them to Advertise companies or Survey companies for huge profit. I was always against this so I try to avoid Chinese smartphones and also recommend you to do the same if you care a byte about your privacy.

These were the few ways by which Chinese manufacturers produce low-cost smartphone if I had to forget anything important so leave a message in the comments box 


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