The Chinese smartphone market is gaining ground, but it is also becoming increasingly saturated with brands that compete with each other for component search.
Companies that produce Chinese smartphones tend to try to obtain the supplies of most of the components from "local" suppliers, but at this moment they can not manage the situation and therefore the orders sometimes get out of hand with consequent delivery delays.
For this reason, some brands including Xiaomi, Huawei, Vivo and LeEco are adopting a more conservative approach to orders with such vendors, to such a degree as to self-produce more specific components such as Xiaomi's new Pinecone Surge S1 CPU.
Some reports in circulation even show that there is a backlog of orders dating back to the fourth quarter of 2016 that have yet to be delivered, and this could be one of the reasons why some smartphone manufacturers have delayed the launch of new smartphone models since Q1 2017 to Q2 2017.
Typically when a market is saturated, such as smartphones, there is a reduction in unit prices in order to maintain competition between producers.
This type of scenario, however, seems to be foreign to Huawei's low profit margin in the 2016, despite the 139 record expedition of millions of smartphone units last year, which is therefore driving the company to set a price increase strategy.
A strategy already used by Xiaomi and LeEco who have been forced to announce price increases for some of their models in order to increase their earnings.
So it seems that the increase in the prices of Chinese smartphones and related components is the basis of the 2017 market. The forecasts point to a scenario in which Chinese smartphone sales fall below 100 million units in Q1 2017, a huge drop compared to the 130 million units recorded in Q4 2016.
But the thing that did not consider analysts seems to be the innovation factor. In fact, many companies, including Xiaomi, are increasingly bringing new features, new technology, also resulting from investments in research and development. And so the price increase does not only justify market laws but also the financing of the coming innovation.
Lovers of CINAFONINI, what do you think? Have you heard the "overwhelming" effect of Chinese smartphones or are you more than happy to know that that small allowance is useful for research and development of companies? Let us know your in the comments box below.
Just stop wanting the Chinese "brand" at all costs.
There are excellent products from less "prestigious" brands at much better prices, such as Vernee or Oukitel.
Do you want the brand? Then pay it.
Right observation even if at the moment the Chinese "brands" undoubtedly offer more quality than the smaller brands. With the exception of Huawei, which has now entered the top brands and therefore is undergoing and making us undergo all that lies behind its fame, companies like Xiaomi still manage to offer advantageous prices compared to the competition
Simple. Price increase = stop buying.
If prices increase because they take the risk of buying mobile phones without a European guarantee?