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Author: Phill Maling
Publication Date: Aug 05 2014
Pages: 9
Report Type: Presentation, PowerPoint

Chinas smartphone vendors Cheap as chips!

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Report Summary:

This PriceTRAX extract examines smartphone prepaid/unsubsidised and post-paid/contract pricing for Chinese smartphone vendors. Alcatel/TCL, Lenovo, Huawei, ZTE, Xiaomi, Coolpad, Amoi & K-Touch’s global average retail prices were calculated over the past 12 quarters and compared to the average prices for all smartphone vendors. Smartphones from Chinese manufacturers retail for less than 50% of the smartphone global average retail prices in Q2 2014 at 168 USD versus 345 USD for an average smartphone (tax excluded). Contract/post-paid device price for Chinese smartphones (in Europe) paints a similar picture with a disparity of 60%; upfront device price for a smartphone from a Chinese OEM being approximately 40 USD (on a 24 month contract) compared to the average handset at 102 USD upfront on a 2 year contract in Europe.

Summary Points:

- Chinese smartphones retail for 50% less than the global average smartphone price both prepaid/unsubsidised and post-paid.
- Huawei, Lenovo & Alcatel have global availability however many Chinese OEMs are only available in APAC and more specifically China only.
- Average smartphone retail pricing in China (all OEMs) is 230 USD, 44% lower than the global average.
- 27% of the smartphones currently available globally are from Chinese manufacturers.

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