White-box Android makers face extinction as the big boys go downmarket

White-box Android makers face extinction as the big boys go downmarket
White-box Android handset manufacturers, you know, the ones in huts and abandoned warehouses scattered all over the the Guangdong province, are finding it increasingly difficult to make their sub-$160 phones and make profit.

The big local boys Huawei and ZTE are successfully ramping up their Android efforts, as we witnessed first-hand during our MWC visit this month, and they have the components supply bargaining power to compete better. That's on one hand.

On the other, global players like Samsung and Nokia are increasingly willing to get down and dirty with affordable handset, which adhere to basic quality standards, so your no-name Android handset stands very little chance before something with a famous logo slapped on it at about the same price and specs.

Moreover, the government-run Chinese carriers are heavily subsidizing Huawei, ZTE and Lenovo, and the Chinese themselves are becoming increasingly brand-conscious, so the days of your humble white-box Android maker might be numbered. With all these popular brands elbowing them out from the $150 market, they are forced to move to the $100 market for entry level smartphones, which for them is almost the same as cost.

source: Digitimes

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4 Comments

1. mercorp

Posts: 1045; Member since: Jan 28, 2012

pity.they have smarts like duo sim and tv tuner. someone should save them.

2. remixfa

Posts: 14605; Member since: Dec 19, 2008

adapt or die.

4. Baseballer

Posts: 132; Member since: Dec 07, 2011

Billy Bean(Brad Pitt)- Moneyball. Good quote!

3. rallyguy

Posts: 620; Member since: Mar 13, 2012

I agree with remixfa. Companies must adapt to the market to succeed. Of course in China they are given money by the government to stay in business. I believe this is one reason why Chinese branded products suck in quality. They have no incentive to make quality devices since the are supported up by the government. In a way, much like some US companies. I know most phones or at least parts of the phones are made in China, but they are made to standards. I would never think of buying a Chinese branded phone until they have been on the market for years and their quality tested/ Even then I probably would not.

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