In 2011, chip makers like Taiwan-based MediaTek and Spreadtrum started selling complete touch-screen smartphone chipsets, with detailed designs for smartphones included, enabling low-cost manufacturers to combine free Android and sweatshop labor in China to produce smartphones for about $40 each.
That means they can be profitably sold for $65 unlocked, or $35 with a contract.
There are now literally hundreds of companies making cheap Android phones in China.
chinese companies are competing strictly to each other to sell the samrt-phones at really shocking lower price. In Indian rupees, they will be selling around Rs.3250 unlocked.
Actually The change began in 2011, when computer-chip makers began selling off-the-shelf chipsets—the set of processors that are the brains of a touch-screen phone. Those and plus Google’s free Android operating system made smartphones much easier to produce.at low price.
Larger Chinese companies, like Lenovo and Huawei, have also swarmed into China’s market with mid range phones that costs approx $200. Lenovo captured 12 percent of China’s market last year.
Liang (Liang’s company, Xunrui Communications) says his aim is to make smartphones that are affordable, even if they aren’t yet as good as an iPhone. That means the camera and LCD screen might not be the best, and the battery life could be shorter. “I always use this word ‘acceptable,’” he says. “A lot of users only need an acceptable product. They don’t need a perfect product.”
What’s certain, Liang says, is that the quality of the phones his factories produce will rise. “There is no profit at the bottom,” he says. “Everyone is trying to improve their techniques.”