Chinese phones ?! Ugh! Sounds cheap right? No not anymore. We are much beyond Those days Where Were designated as Chinese phones cheap and bad quality products. With top multinational companies like Xiaomi, Gionee, OPPO, OnePlus and many other companies from China entering the Indian market, They Have revolutionized the Indian mobile scenario. Online Value for Money and exclusivity are the new mantra of the mobile world. With the likes of established players of the Indian mobile market – Namely YU (Micromax spinoff), Karbonn, Intex – rushing for cover to launch online Their exclusive product, the dimensions of the mobile market has just revolutionized in the past year!…
With modern manufacturing prowess with the likes of Foxconn, and growth of the leading manufacturers of original Chinese teams based in and around Shenzhen Chinese technology market it is in bloom. In fact many of these companies are struggling to meet demand! There may be many companies that have heard of before and many have not been done. Either way we will provide a detailed overview of the main wonder phones have taken the world by storm or how to import to Pakistan. Sit down and buckle your seatbelt as we go on a long journey to the world of Chinese technology!
- Value for Money. The cost to power ratio is the top most selling factor of most Chinese tech. But how do they keep cost low when other big established players namely Samsung, Apple, Nokia fail / not intend to do so?
- Top notch manufacturing plants using the latest tech. All made possible due to bulk manufacturers like Foxconn.
- Huge R&D experience of many Chinese players namely Gionee, Ecoo. Oppo having done R&D for Samsung, Apple and many other before becoming launching their own brands.
- With the recent boom in the Chinese microchip industry with the quality chipsets introduced by Mediatek in 2014 have taken the world by storm. Established players like Qualcomm and Broadcom have been put in a stiff! One can easily say 2015 is the worst year by far for Qualcomm. With their own chips suffering due to multitude of heating issues, the timing of launch of compatibly low cost, powerful MT67XX generation couldn’t have been worse for them. Qualcomm’s loss is China’s gain because manyChinese companies have MoUs with Mediatek for providing them Chipset at subsidised costs.
- Various resellers selling Chinese phones globally (obviously charging a little premium over the selling price of the phones) via top notch couriers like DHL, FedEx. They also have warehouses in various locations in Europe and South Asia from where they ship the products. Payments are secure and done through PayPal mainly. We will provide a list of top resellers which you can check out if you want to import something from them.
How do these top Chinese companies keep the cost the phones down?
Are the Chinese phones compromise the quality of other flagship models in order to keep costs down?
But what really flagships of major companies such as Apple, Samsung and Sony and others really cost so atrociously high? That is the basic question that will help you find the answer to the above question. They do not!
Consider a flagship 2015 cost about $ 700 (approx. 44,000 INR / 4400 Yuan). This is generally the average selling price of most of the flagships that are launched at the beginning. Beyond this, the production cost of smartphones is actually 20-25% of the actual cost of production, other 30-35% goes to marketing (an enormous amount of any sense of the imagination), 20-25% by distributors, local retailers, transportation and distribution and, finally, business bags shares of 20-25% gains are consumed. Remember that this is a rough estimate and varies from brand to brand.
Chinese Phones Are compromise the quality of other models most emblematic in order to keep costs down?
But what really flagships of leading companies such as Apple, Samsung and Sony and others really cost so atrociously high? That is the basic question that will help you find the question the answer to the above. They do not!
2015 UN insignia considers Cost Around $ 700 (approx. 44,000 INR / 4400 Yuan). This is generally the average selling price of the majority of the flagships launched on the Principle. Beyond this, the production cost of smart phones is actually 20-25% of the actual cost of production, another 30-35% is marketing (an enormous amount of any sense of the imagination), 20-25 % BY distributors, local retailers, transportation and distribution and, finally, the stock version of a share of 20-25% gains are consumed. Remember this is UN and which varies from one brand overall estimate of one another ….
Once you made a billion phones in bulk, he would pay the current market rate of the peripheral, ie, the SoC, RAM, camera modules, sensors et al, but when it is manufactured in batches , which pays the prevailing market price based on the market rate. We all know how the prices of electronic products are reduced over time. And here it is where your strategy works. For example, when Xiaomi Mi4 introduced in 2014, it was 801 Snapdragon SoC market leadership, but now in 2015, E4 is still selling like hotcakes and top of the range 801 has been replaced by SoC Snapdragon 808 / 810. There has also cut its price by a big margin and so Xiaomi start making more profits. More or less the same with OnePlus One other Chinese phones. Initially, the gain is low and timing margins increased despite keeping costs to consumers.
Can you name a few top Chinese companies whom I can trust?
Yeah absolutely! Here are a few that comes to my mind as soon as you ask me this question:
[NOTE: Honor, IUNI & Nubia are spinoffs of their mother companies namely Huawei, Gionee and ZTE respectively. While Honor and IUNI are primarily online only brands of their mother companies Nubia is a premier segment of device from ZTE]
You may have heard about many of these companies before. So now comes the real list, which feature companies many of which you probably haven’t heard off before. But we can assure you they build some killer devices! Even if you haven’t heard of any of them before, no worries, there’s always a first time.
You might have also used or been using phones of three of the companies named above namely Meitu, Mlais and Coolpad. Micromax Canvas Selfie, iBerry Auxus Beast and YU Yureka are rebranded models of Meitu M2, Mlais M52 and Coolpad F2 respectively.
Did we miss out on any companies which you feel deserves to be on this list? If so feel free to air your views in the comment section below.
I want to buy one of their phones! But how to go about it?
In order to buy, you have to drop onto one of these Chinese reseller websites like Merimobiles, PandaWill and place the order. But is it that simple? No. If it had been so, we wouldn’t have been penning this down for you.
Here are some of the top Chinese resellers below:
- Honorbuy.com (formerly Xiaomishop.com)
If you think there’s a website we missed out kindly name it in the comment section below sharing your buying experience with the site. We will definitely add it to our list later.
Once you have selected the phone you want, and also found out the cheapest option at one of the resellers mentioned above, you think your job is done and the phone is damn cheap! But before you bring out the calculators and change the USD into your own currency and start celebrating seeing the price, you must stop right away! This isn’t the price you are going to pay. There will be a whole lot of price additions to one you see now. Let’s see what all are there:
- Shipping cost: In most of the websites, you will get two options. One option is Post and that’s the cheapest (but which we wouldn’t recommend – stay tuned to find out) and the other one is shipping via top courier companies. The shipping cost will albeit vary from country to country. On an average, it is in between $20 to $60. Shipping to India will cost around $20-$30 if you are shipping through DHL, FedEx.
- Currency conversion rate: First of all you need to have a credit card for shopping with any one of these Chinese resellers. All the websites mentioned above support secure payment via PayPal. But since you are paying using a different currency than what is used in China i.e. Yuan Renminbi, you need to pay a separate conversion rate. PayPal provides the option to handle the currency conversion on your behalf and for that they charge about 4.5%. Your credit card company might be charging lesser. In that case you can choose to pay in the currency seller ask while paying via PayPal.
- Import Duty: Import duty (or VAT in Europe) is the most unpredictable among all the added costs! Technically, the import duties on smartphones is around 6% in India and most other things (including tablets) is around 28%. But sadly, no one ever knows exactly how much the import duty you might need to pay. At least I haven’t been able to figure out exactly how does the Custom official charge import duties on products. It depends on your luck! But the few important points that they see are as follows:
- The cost of the electronic gadgets that is passing through the customs. If it’s a flagship device which you are importing then you would need to pay a higher custom duty as compared to a budget device. Generally the custom charges about $20-50 (approx. 1200-3000 INR) for flagship devices.
- If you are importing a phone which is high on demand, the customs might charge you more. Thus if you are importing something like Xiaomi Mi Note the customs will end up charging you higher.
- Customs duty also varies depending on the brand of the device your are importing. Maybe they will charge you more for a HTC or Xiaomi device than for an Elephone device.
But coming to the point, the customs duty is the primary reason why we would recommend FedEx, DHL over Postal service. DHL, FedEx provides an option for clearing the customs for you on your behalf and you need to pay the courier guy the custom charges when you receive the product. On the contrary, Postal service doesn’t handle customs for you. In case you are importing a device from China, the China Post will drop the package to the Customs office on the border. Then the customs department sends you a letter (mind it, they sent it via post) confirming receiving a device and informing you that it is sitting with them for Customs duty. Depending upon, where you are from, you either have to visit the customs office or have to write a letter to them confirming the order and asking them to clear the customs. So you can easily understand this is a long process! The package ends up spending few weeks or so in the Customs office. This is the second reason why we don’t recommend Postal Service. FedEx or DHL delivers the package to your within 3-4 weeks and you don’t have to tackle all the hassles of customs! Of course, the experience with DHL/FedEx hasn’t been flawless, but it’s still much better than the Postal service.
So finally you end up paying about an $80-$100 more over the price that you saw on the website.
I’m done with importing and stuff? But what about warranty?
In most cases, you won’t be getting the company warranty, because most Chinese companies provide country specific warranty i.e. for China only. But there is a way out, albeit a tough one. For warranty issues, you would need to ship the product back to the resellers from where you had bought and they will handle the rest. Mind that you will need to pay the shipment charges back to your resellers in China, but most resellers don’t charge for the return shipment though. Check with the reseller you purchased from for more details.
There are a few companies like Meizu, IUNI to name a few who provide international warranty and you would need to ship the product back to the company directly without going through the resellers. This will fasten up the whole process. But honestly speaking, you won’t need to worry about warranty issues! How many times have dropped down to a service centre for warranty issues in the recent past? It generally happens these days due to the multiple rounds of checking that each device goes through. But if you’re someone who worry a lot about warranty, the whole process is just not for you.
In spite of all the hassles and extra charges associated with importing a device from China is still not a bad option. In fact, it’s a great one if you don’t have many choices of the device which you are looking for in the same price range in your country. So go ahead and make you first attempt at buying a phone from China.
Don’t forget to post comments if you have any questions regarding importing phones from China will be more than happy to help you out.