Why Do Cheap Android Phones Cost So Little?

Cheap phones may sound too good to be true at first glance. Why is it that a $50 phone has the same specs that a $200 – sometimes even $300 – phone has? Why do some low-cost Android phones with lush displays and powerful processors cost around $200 when the branded counterparts cost upwards of a $500?

Sometimes it can be tempting to think that there’s a nefarious reason that these cheap smartphones are undercutting the competition so savagely. But when you stop and consider the following factors, it will be a lot easier to understand why there’s such a big discrepancy:

Marketing

The first and most significant reason why cheap phones cost so little: they’re not trying to compete with the marketing budgets of big boys.

Many big companies that have spent millions, or billions of dollars to cultivate their brands. People don’t care if the base components of their devices are literally identical to those of other affordable Android phones. The brands have won the trust of their fans, especially when the phones are doing exactly what they are supposed to.

Off-brand companies that offer budget Android phones, however, don’t have this advantage. They need every competitive advantage they can get to make people notice them, and one of the ways they do this is to sell their phones at thin profit margins. They don’t have a big budget for marketing all over the world. The goodwill of satisfied consumers, however, will help boost awareness of these smaller players. Word of mouth is their primary marketing tool.

Function

Another significant reason why cheap Android phones cost so little is because the emphasis is on functionality.

When it comes to phones, you have models that look good and feel good to hold. So good, in fact, that some consumers are willing to pay a lot to get a phone that is pleasing both to the eye and to the touch. This adds to the premium experience and is one reason why some phones cost significantly more than their low-cost counterparts.

Many affordable Android phones, however, keep things simple in order to minimize unnecessary expenses. They may not have all the added extras like NFC, High Spec Cameras or Sapphire Glass protection. This is especially true for budget Android phones. You pick them up because you need them to do a job. This doesn’t mean that the phones need to be ugly or anything. Many are pleasing enough to the eye and have all the basics you’ll need, but the focus is always on utility. Premium materials with good finger-feel are lower on the list of priorities.

Interchangeability

Another large difference between cheap phones and their branded counterparts is how easy it is to replace broken parts.

These low-cost Android phones often utilize components whose replacements can be easily found in the market. The technology used is shared and commonly available, which is a far cry from the proprietary technologies used by many higher-end brands. Makers of these phones want their devices to ‘play nice’ with others, which is always good for the consumer.

This is unlike many branded phones that force you to use gadgets in a ‘closed’ ecosystem. The brand controls all replacements, accessories, and add-ons for their devices – allowing them to dictate the prices as they see fit. The lack of interchangeability thus forces consumers to stick to their brand, even when doing so costs significantly more than what their competitors are offering.

Chinavasion is a Hong Kong-based wholesale electronics company sourcing its products straight from Shenzhen, the manufacturing heart of China. Retailers and consumers alike will be able to avail of a wide array of high-tech gizmos, from cheap Android phones to high-spec Windows tablets.

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