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The Smartphone Industry - An Essay Sample

5 pages
1340 words
Middlebury College
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The smartphone industry has grown over the past few years to exponential levels. The rise in the use of technology has caused an increase in demand for smartphones and related gadgets. China boasts of being the leader in the manufacturing of electronics. The manufacturing industries in China have shared the role as a world leader competitively. Ever since the start of the digital generation of devices in the present century, Chinese companies have set the pace in the smartphone industry. China has one of the most rigorous academic curriculums that enhance the scientific training and learning process practically. Due to the quality education, research, and technological innovations, Chinese companies thus have a skilled workforce at their disposal to advance their cause.

The growth of Chinese companies such as Oppo and Huawei has brought competition to the pioneer companies such as Nokia and Xiaomi. Despite the growing number of electronic companies manufacturing smartphones, all the companies remain viable due to a constantly increasing demand for the gadgets in Asia and other parts of the world. China is the single major exporter of smartphones to a majority of countries. The continuous innovations and advancements done by Chinese companies have ensured that all the companies are viable and so does the industry continues to progress. The political support offered by the country regarding seeking bilateral and multilateral cooperation between China and other states continue to boost the industry and China's significance in the smartphone industry and also the electronics industry

China has established itself as a technological powerhouse and has an advantage over other companies and countries. The advantage comes from some factors which singly and jointly attribute to the overall prowess of China. Chinese companies manufacture cheap smartphones compared to the likes of Apple which sell their smartphones at high prices. People consider purchasing smartphones which are both effective and cheap. The low price of China's smartphones is attributed to some factors which may not be available in other smartphone manufacturing cou8ntries. Chinese companies thus produce their smartphones at a much lower price. Therefore they can be able to sell their products at low prices and still obtain a profit.

Having pioneered in the industry, Chinese companies have had the chance to experiment new technologies and advancements while being able to influence the markets. Oppo, for instance, has been able to continually try out a new feature on their smartphones while advancing their brand as a trendy smartphone producer. The availability of a skilled workforce ready to execute different roles in a smartphone manufacturing production line. Without the excellent quality of smartphones produced by the Chinese companies, there wouldnt be a positive progress by China in the industry. The combination of trendiness and quality has helped Chinese companies lead the industry. The huge population of Chinese and Asian citizens offers a ready market for the companies. The relative advantage by Chinese companies is likely to be maintained due to the rise of online sale platforms and the increased marketing and advertising by companies such as Xiaomi, Huawei, and Oppo.

The continued decrease in smartphone prices across the smartphone industry has made companies reconsider their economies of scale. The presence of market of smartphones is projected to rise with a contrasting expected decrease in prices. The companies are poised to make profits by advancing their products to new markets such as Africa whereby the populace is increasingly embracing digital devices as before. It is thus profitable for the companies to produce the current quantity of products. The cost of production in China is quite low due to cheap raw materials and labor. The taxes by the government have been decreased to encourage Chinas expanding smartphone industry across the globe.

China seeks dominance in the economic arena and has partly achieved so by building the electronics industry. There would never be a point when the smartphone industry could be exhausted because of the constant development and innovation of new features. Also, the fact that smartphones are prone to damage such as breakage of touch screens has led to the growth of a secondary business which is the production of smartphones' spare parts. It is projected that the constant decrease in smartphone prices would draw in the low-level companies offering them a space in the market hence a rise in competition and flooding of gadgets in the demand. A further plunge in the process would force the companies to sell their products at small profit margins. However, once China has established dominance in the market, it would seek to legally and statutorily regulate the market via sound policies to ensure the market stays viable.

One thing that has ensured that Chinese companies stay significant in the industry is the diversification of the products. Different companies have a niche and sell out their products due to a unique feature in their products. Some companies have established a niche in the camera feature. Some consumers prefer to have devices that they mainly use for photography. Other consumers prefer the musical feature of smartphones. Other companies have advertised their products as having effective sound and music features. However, the features of smartphones are quite all common and same such that a consumer seeks out to other key aspects such as the quality of the gadget.

The Android platform used majorly by all smartphone manufactures is an open platform. The platform encourages liberty of developers in constructing their innovations around the system. The single most used platform in the world in smartphones thus makes the smartphone industry in China quite a homogenous one. Apple being non-Chinese is one company that has produced a unique line of smartphones in the brand of the iPhone series. The application and software production becomes an alternative for the companies to diversify. The technological uniqueness of a smartphone has to be accompanied by relevant android application and software. The rapid advancements and technology research by the companies has made the industry a relatively heterogeneous industry with a diversity of products offered and produced.

Chinese smartphone companies have developed a global-oriented approach to their venture. They have capitalized on the read global market to drive their sales. Garnering profits depends on the approach taken by the companies in making their sales. Some companies prefer foreign direct investments involving setting up assemblies and industries in other countries. Other companies have a preference for the foreign trade involving direct sales and exports to sale destinations. Foreign direct investments weigh versus international trade on the contrasting advantages and disadvantages.

Chinese companies have been involved in investing money in other countries to set up stores. The Chinese government has been flexible in allowing Chinese smartphone companies to do direct investments. The advantage of foreign investments allows the company to primarily operate in the new locations rather than have their distributors export the gadgets from their central assembly lines in China. This allows the company to garner more profit and establish consumer confidence and grow the brand of the company. The smartphone foreign direct investment varies from having the company deal with the exporting of the gadgets to their stores in the new destination or setting up stores in the country. Either of the option despite taking some capital from the company does also offer the company to open up its business and widen its franchise. It is thus a sophisticated and aggressive business approach compared to trade.

OppoOppo smartphones have increasingly gained market share in the smartphone business globally. The product is a Chinese brand that is renowned for its selfie feature that has lately been its core selling feature. By combining sophisticated hardware, technological innovations, powerful software and quality materials, Oppo has gained massive user approval. Having been founded in 2004 and entering the mobile phone industry in the year 2008, the company has rapidly grown beyond expectations. Oppo breached international boundaries and began sales in 2010. The ever-expanding sales and production might see the brand shift to more markets. The company embraces technology as the core of the venture hence the constant innovation and release of top-notch products and gadgets.

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