As the smartphone market becomes more competitive, local brands are increasing their retail prices. The increase in prices is mainly due to the rising cost of components and the pressure of increasing profits.
While Samsung and Apple currently dominate the smartphone market, Chinese smartphones such as Huawei, OPPO, and Vivo have become increasingly popular in the recent years because of the cheaper price.
But this year, Chinese brands have decided to increase the prices because of the price of the components and these companies are seeking greater opportunities in the high-end market.
Meizu Technology Co increased the price of its Note 5 to 999 yuan ($145), an increase of 100 yuan from its release last December.
Meanwhile, LeEco's smartphones are now 80 to 280 yuan higher compared to their release prices. Huawei Technologies Co Ltd and Xiaomi Corp also followed suit, adjusting the prices of their products.
"Due to the continuing depreciation of the yuan, the cost of smartphone storage, display and chips have all gone up because the orders are all processed in dollars," said Xiang Ligang, a smartphone expert and CEO of cctime.com.
Despite the increase in retail prices, it seems that Chinese citizens won't hesitate in buying new smartphones this year.
According to a survey conducted by Accenture, 54 percent of people would buy a smartphone this year, up from last year's 48 percent. Meanwhile, three out of four Chinese consumers are planning to buy new smartphones this year, up from last year's 61 percent.
"Improved features and falling prices are key reasons consumers around the world are signaling a desire to buy new smartphones," said David Sovie, global managing director for Accenture's electronics and high tech business.
Nokia 6 Sells Out in China
Nokia made a surprising comeback with the release of its new smartphone in China.
Selling at $245, the new Nokia 6 was sold out in a span of a few minutes. Receiving over a million registrations for a flash sale last Thursday, the Nokia smartphone's demand was 'unprecedented.'
The Nokia 6 feature 64GB of internal memory, a 16-megapixel rear camera, and an 8-megapixel selfie and video chat camera. It is still unknown if the smartphone will be released in the U.S. market.
Smartphones have now become a necessity in today's mobile age. As manufacturers struggle to continually innovate and compete, the smartphone market still has great potential. Chinese brands can still explore the opportunities in the domestic and global market.