Friday , January 22 2021

The reason why Chinese mobile phones are so cheap "frighten" the US

The arrest of Huawei's management draws attention to the growth of Chinese companies in other markets, to such an extent that it is already ahead of the classic American companies.

Chinese smartphones have gained market share over the past two years. Indeed, in the list of the top five manufacturers of this 2018 Huawei surpassed Apple and came second, just below Samsung, according to the IDC report after the end of the second quarter.

This Chinese company, which now sees one of its senior executives and daughter of the founder Huawei, closed in Canada- he has 15.8% of the market, which means a 40.9% increase over the past 12 months. In the list of the first five appear two other companies of the same origin, Xiaomi and OPPO, which surpassed the "giants" like LG, HTC and Motorola.

Huawei is not the only one in the bigger country in the north: Xiaomi has to circumvent licensing and patents. Also, the company has indicated that they expect to sell mobile phones there in 2019, although they sell accessories from 2015 onwards.

How does the miracle of the mobile phone happen in the Great Wall?

One of the most famous reasons is Low cost of labor. In addition, companies such as Xiaomi, Huawei and Meizu are producing at home, while Apple and Samsung depend on Chinese manufacturers like Foxconn.

On the other hand, the hardware is very good, but it's not the tipFor example, in chips they choose Mediatek instead of Qualcomm because they are cheaper and are produced in China. In the past the screens are Japan Display or LG, cheaper than AMOLED, as explained by the Androidpit site. However, in recent versions this is changing, and Huawei, for example, comes with first-line cameras and Xiaomi is increasingly improving its offerings, even though they support a mobile phone strategy at the entrance as the M1 of the latter.

Low cost marketing

Another great opportunity is this prefer to sell their products through e-commerce – The OnePlus case is paradigmatic and generates a lot of fans around the world – allowing you to reduce the price because it avoids large distribution costs.

In the same sense, the Chinese are saving in marketing: while major brands are making numerous events to attract attention while brands such as Xiaomi – one of the most successful at present, out of complications of public supply: the expected US $ 100 million mark and is just over 50 million US dollars – Bet on social networks and mouth-to-mouthOne last piece of information in this respect: production is limited and this means that if you do not achieve it at the start, it will not be attained later; for example, the Xiaomi Mi4 sold for 37 seconds when launched in 2014.

However, when it was released on the world market, Huawei decided to include a spokesman like Lionel Messi to reach markets like Argentina, as well as an exhibition for Jersey Boca Juniors. But as he decides not to produce in the country, with the rise of the dollar in recent months his position in the local market suffered. They are now considering dealing with local manufacturers and maintaining an aggressive strategy for corporate and state sales of network hardware.

Low profit and lots of research

The Xiaomi Hardware Division's revenue never exceeds 5%, while Apple is always looking for between 30% and 40%, and that it rises by plugging accessories such as charging cables or net costs. Apple Watch.

On the other hand, in the case of Huawei, there is a R & D strategy for which they spend $ 12 million in 16 research and development centers. There they have developed quality cameras, the first processor with artificial intelligence and long-lasting batteries.

A diverse strategy

The clearest example of broader growth strategy This is Xiaomi, which sells even shoes, but also intelligent watches, appliances such as washing machines. Hardware provides 21% of its revenue to this company, while 63% come from smartphones. In addition, always talking about this company, Huawei, meanwhile, sells smartphones, tablets, carriers, home devices, and cloud services.

Xiaomi also offers services on the market as advertisements that carry between 4 and 9% of their total revenue. And in India, along with an entity called KreditBee, gives personal loans to people who have their computers using their own operating system MIUI – Android "retouched". The interest rate is 3% per month, and the amount must be returned within a time range ranging from 15 to 90 days.

The cheap ones are expensive

In the middle of this year, Kaspersky Lab's report found that some low-priced computers had pre-installed malware that could show ads to users without the ability to avoid them or collect personal data to sell to third parties or combine both invasions into your data).

Similarly, a pre-installed trojan has been found that allows criminals to run ads on the operating system on devices from relatively large developers such as ZTE, Archos, Prestige and myPhone. In another investigation, it was found that OnePlus and BLU smartphones have pre-installed spyware that collects sensitive personal information that is sent to the manufacturers' servers.

To make things worse, most of the participating vendors look like verified partners on the official Android site; which means that pre-installation of malware is an increasingly common practice.

"Given that phones contain more and more personal information, even those that are considered sensitive, it is important for consumers to make choices not only on the basis of price but also privilege security and privacy. Surprisingly, the cheap smartphone may be more expensive when the manufacturer installs malware that shows ads, which shares sensitive information with third parties and prevents the device from working properly, "said Santiago Pontirolli, Kaspersky Lab Security Analyst at Infotechnology.

In this sense, another study published by Avast mentions that they can find the malware installed in more than 100 branded brands such as ZTE, myPhone and Archos, which are sold in more than 90 countries, which type of practice covers all countries.

On the other hand, and returning to the question of the daughter of Huawei's founder, Meng Wanzhou, who is detained in Canada, US justice suspects that at least since 2016 the Chinese company has shipped products originating in the United States to Iran.

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