Report: only 13% of Chinese consumers will buy smartphones priced over $330

Today Sina released a report on consumer preferences for Chinese smartphone brands and pricing, and while Sina isn’t a market research firm and the survey isn’t perfect, the report still produced some interesting findings on how Chinese buyers perceive domestic mobile devices.

Sina sent out questionnaires to 800,000 recipients, asking consumers to state which domestic brands they have the ‘deepest impressions’ of, and list their preferred price points for domestic smartphones.

Of the 670,000 respondents, 18 percent of respondents claimed to be most familiar with Huawei, followed by Lenovo (17.9 percent) and Xiaomi (16.5 percent). These three brands are trailed closely by Coolpad, Meizu, and ZTE.

The news here is that Xiaomi, a company barely three years old, is now just as well-known as China behemoths Huawei and Lenovo. Meanwhile, Lenovo, a company best known worldwide for its stronghold in the PC market, remains well-known in China for its mobile devices. The company sells the majority of its phones domestically at the moment, and trails only Samsung in terms of sales figures in China.

Sina points out that these six brands received an aggregate of 97 percent of respondents’ votes, while only three percent of respondents claimed to have deep impressions of local brands Hisense, Haier, TCL, Gionee, Bubugao, and OPPO. The low brand recognition of OPPO comes as somewhat of a surprise, as that brand, like Xiaomi, has attracted the attention of the international tech media for its customized CyogenMod Android ROM, and for its global expansion ambitions.

Meanwhile, as for pricing, an overwhelming maority of the 627,000 respondents expressed a preference for midrange phones.

SinaPricesTwoPng

As the above chart indicates, 57.8 percent of respondents would be willing to pay RMB1,000-1500 (between $165 and $246) for a Chinese phone, while almost 30 percent replied that they would shell out RMB1,501-2,000 (Between $246 and $329) for a domestic handset. Meanwhile, at price points above RMB2,000 (about $329), consumer acceptance of domestic devices drops significantly.

Challenges for domestic manufacturers

Of course, while Chinese companies appear to be best poised to sell to local consumers at the mid-range, most profits are made at the high end. Anything priced above $411 will have healthy profit margins, but will be pit against the ranks of Samsung and Apple – and consumers that are less price-sensitive might choose international brands over domestic counterparts.

This has led domestic manufacturers to push “premium budget” devices like the Huawei Ascend P6 and the Meizu MX3 (Xiaomi’s best devices also fit into this price range). Phones in this sub-category tend to feature quad-core processors, rear cameras of at least 8MP along with front cameras, and screen resolutions around 1280 x 720.

China’s smartphone market is the largest in the world, with 30 million handsets sold in the month of August alone.

(Source: Sina)

(Editing by Steven Millward)


The post Report: only 13% of Chinese consumers will buy smartphones priced over $330 appeared first on Tech in Asia.

Matches

MORE TOP STORIES TODAY

Punjab pull off another big chase

Punjab pull off another big chase

GAME 7, SHARJAH—Maxwell, Miller, Pujara chase down Rajasthan's 192. More »

Royal test for Kings

Royal test for Kings

Preview — Clash of philosophies between Australia-centric teams More »

Have nothing to prove to anybody — Sehwag

Have nothing to prove to anybody — Sehwag

The Nawab of Najafgarh says a good run in IPL could help his chances of a comeback on India's tour to England in June. More »

Shastri in proposed IPL probe panel

Shastri in proposed IPL probe panel

Some members stressed on the need for proposing names with an "impeccable record and clean image". More »

Duminy steals first win for Delhi

Duminy steals first win for Delhi

Furious fifties by Duminy and Dinesh Karthik end a long losing streak for the Daredevils. More »

Five things England must do to bounce back

Five things England must do to bounce back

England have appointed a new head coach in Peter Moores. More »

AB, Parthiv seal Bangalore's second win

AB, Parthiv seal Bangalore's second win

Royal Challengers overcame a stutter to cruise to the small target they were set by Mumbai Indians. More »

‘Felt like helpless minority’

‘Felt like helpless minority’

Former BCCI treasurer Ajay Shirke says emotions got the better of Srinivasan and he tried to oversimplify things by calling Meiyappan an “enthusiast.” More »

Srinivasan can attend BCCI meeting

Srinivasan can attend BCCI meeting

His status as president of TNCA makes him eligible to attend the Working Committee meeting on Sunday. More »

No way back for Pietersen: ECB

No way back for Pietersen: ECB

Kevin Pietersen's hopes of reviving his international career appeared to end Saturday when ECB managing director Paul Downton said there was 'no way back'… More »

The world record that nearly wasn't

The world record that nearly wasn't

Twenty years ago this week, Brian Lara became Test cricket's highest scorer, but he almost didn't make it. More »

Maxwell carves his parallel universe

Maxwell carves his parallel universe

Glenn Maxwell seems to project an icy disdain when at the crease. Match situations rarely faze him and the bubble in which he plays excludes everyone … More »

Moores gets second stint as coach

Moores gets second stint as coach

In a two-year spell from 2007 to 2009, the 51-year-old Moores led England in seven Test series. More »

Bangladesh senior players to see shrink

Bangladesh senior players to see shrink

Bangladesh's senior players will have three sessions with a psychological skill development coach later this month More »

BCCI is not anybody’s property — Dalmiya

BCCI is not anybody’s property — Dalmiya

Dalmiya feels that Srinivasan’s ‘power hungry’ attitude isn’t helping matters. More »

Tough for bowlers: Saeed Ajmal

Tough for bowlers: Saeed Ajmal

The 36-year-old believes the T20 format and rule changes in 50-over matches have made a real difference. More »

KP ridicules idea of day-night Tests

KP ridicules idea of day-night Tests

Kevin Pietersen has ridiculed the idea of day-night Test cricket, saying the game would be so different to proper Test cricket that we will need a whole… More »

Rajasthan edge low-scoring thriller

Rajasthan edge low-scoring thriller

The bowlers restricted Hyderabad to 133 for 6 before Rahane and Binny took Rajasthan over the line. More »

Maxwell blitz takes Punjab home

Maxwell blitz takes Punjab home

The Kings XI batsman blasted a 43-ball 95 to help his team pull off a massive chase against Chennai Super Kings. More »

BCCI members want independent probe

BCCI members want independent probe

The board members are realising after the Supreme Court's observations that something has to be done — IS Bindra More »

'BCCI lacks leaders to take on Srini'

'BCCI lacks leaders to take on Srini'

Two former BCCI presidents, Shashank Manohar and Jagmohan Dalmiya, have reacted strongly to the news of the BCCI calling an emergent meeting on Sunday… More »

Delhi look for first points against confident Kolkata

Delhi look for first points against confident Kolkata

Preview — The threat of Sunil Narine looms large again. More »

Bangalore vs Mumbai: A battle of the big-hitters

Bangalore vs Mumbai: A battle of the big-hitters

Preview — Given the firepower in both line-ups, Dubai crowd may see another high-scorer More »

Yuvraj tees off to Sharjah's delight

Yuvraj tees off to Sharjah's delight

Yuvraj Singh was hardly convincing to begin with against Delhi, but a big dose of crowd support and a helping of poor bowling meant he had the opportunity… More »