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Chinese Phone Companies Must Hurdle Through Tough Market

| Sep 21, 2015 06:49 AM EDT

As of Sept. 14, the iPhone 6S and 6S Plus were greeted with a strong demand for the first weekend of pre-orders.

Chinese handset makers are expected to face strong competition from Apple’s recent sale of its new iPhone, according to a report by the Want China Times.

Furthermore, the report stated that competitors in China could learn from Apple's current strategy of maintaining high inventories after the launching of pre-orders for its products.

In the past, Apple did the opposite and caused numerous buyers to comply with the waiting period due to low levels of supply.

As of Sept. 14, the iPhone 6S and 6S Plus were greeted with a strong demand for the first weekend of pre-orders. Observers note that the new products could possibly overcome the 10-million sales record of the previous iPhone version during the same period.

The low inventory level of Chinese handset makers is attributed to the fact that most of these companies are wary of low sales that could possibly be caused by the high degree of similarity of most smartphones in the Chinese market.

Competition intensifies when the companies try to develop 30 phone models which all make use of the Qualcomm Snapdragon 820 processor.

Apple, on the other hand, manufactures its own chips that power the iPhone. With such efficiency, Apple is able to gain a greater market share, making it increasingly difficult for Chinese companies to compete.

OnePlus is the latest company to suffer from a low inventory of new products. The company began distributing its brand new OnePlus 2 in September, a month after the official launch of the phone on July 28.

Samsung also encountered a similar problem when it was experiencing difficulties with sales of the Galaxy S6 Edge due to a tight supply, with the company unable to anticipate the strong demand for the device.

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