Andre Yoskowitz
1 Apr 2012 20:12
So called "white-box" phone makers are being shut out of the Chinese market, as large player like ZTE, Lenovo and Huawei release smartphones for under 1000 yuan ($150 USD).
Other big players, like Samsung and Nokia, are also reducing their prices in the nation in an effort to take market share.
"White-box" handset makers, who create un-branded phones that clone popular Android (and other smartphone OS) devices, will likely see a 30 percent drop in their sales in 2012, says Digitimes. A few hundred are even expected to go bankrupt over the next year.
Not helping their case is the fact that Chinese carriers are aggressively subsidizing Lenovo, ZTE and Huawei phones, allowing them to compete price-wise. Brand recognition has also increased exponentially in the nation, leading to more demand for branded phones from big-time smartphone makers.
By 2013, Digi says it expects entry-level smartphone prices to reach an average of just $100.