With the ongoing Coronavirus Pandemic taking center-stage, things are not exactly smooth in the tech space too. Many countries are citing "poor Coronavirus transparency" as their reason to drop Chinese products as their vendors, or to stop doing business with them. Here is what we think the future holds for China.
Recently UK decided to drop Huawei as their 5G vendor, and expressed a strong wish to cut all ties with the Chinese tech giant, in the foreseeable future. This doesn't come as a surprise, as people around us are mentioning the same thing, to try to reduce their reliance on Chinese products. But it really is easier said than done. Take the smartphone industry for instance. In India, the market share of Chinese smartphones is well above 65% (source). These phones primarily target the budget and mid-range sections of the market. India, being a huge market for the budget smartphones, is heavily dependent on these brands like Xiaomi, OnePlus, Oppo, Vivo, Realme, Honor, etc. A ban on Chinese smartphones, however it may sound, is realistically not really feasible. They are one of the best phones at this price, and other brands fail to provide such quality at affordable prices.
Not just these smartphone companies, but even other phone makers, who are not based in China, use many of their components which are made by China. Huawei is one of the global leaders in 5G technology, and many of the countries and companies, have approached them for their tech. Many of the smartphone components are made in China, and exported all over the world. So then again, China becomes an irreplaceable part of the smartphone industry.
So what does this mean? Can we never move to drop Chinese products? Well for the time-being, realistically, No. The Indian audience is highly budget conscious, and removing the biggest player in the budget market, would not bode well for us. The bottom line is, everyone is looking at their own margins as well. Vendors can't part with Chinese phones, nor can the audience.
But things are not all that bleak. With a boost in native innovation, and if other companies slowly start to provide high quality products, at reasonable prices, we may see a time in the future, where our reliance on Chinese products, is a bit less. We just need to wait and watch what the future holds.
Here is a detailed article, specific to Huawei, and it's future in the Smartphone world. After google banning Huawei, see what the company is doing to be back in the game, stronger than ever.
This post is a direct reaction to the decision of UK to drop Huawei as their 5G vendor, citing Coronavirus transparency. (The detailed article can be found here. ). The writer, in no way is for or against banning of Chinese products. These are just his thoughts, and his opinion on where the industry is headed.
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Follow The Phone Shrink, to never miss another update, when we post detailed analysis, comparisons, our thoughts and reviews of the latest developments in the smartphone world.
-The Phone Shrink
Thoughts, Opinions, Reviews
The contents of this post are purely opinions of the writer and are in no way targeted to undermine or promote any particular company. These are his thoughts on this topic, and a means to spread information.
images: opensource, link provided on clicking an image.
Recently UK decided to drop Huawei as their 5G vendor, and expressed a strong wish to cut all ties with the Chinese tech giant, in the foreseeable future. This doesn't come as a surprise, as people around us are mentioning the same thing, to try to reduce their reliance on Chinese products. But it really is easier said than done. Take the smartphone industry for instance. In India, the market share of Chinese smartphones is well above 65% (source). These phones primarily target the budget and mid-range sections of the market. India, being a huge market for the budget smartphones, is heavily dependent on these brands like Xiaomi, OnePlus, Oppo, Vivo, Realme, Honor, etc. A ban on Chinese smartphones, however it may sound, is realistically not really feasible. They are one of the best phones at this price, and other brands fail to provide such quality at affordable prices.
So what does this mean? Can we never move to drop Chinese products? Well for the time-being, realistically, No. The Indian audience is highly budget conscious, and removing the biggest player in the budget market, would not bode well for us. The bottom line is, everyone is looking at their own margins as well. Vendors can't part with Chinese phones, nor can the audience.
But things are not all that bleak. With a boost in native innovation, and if other companies slowly start to provide high quality products, at reasonable prices, we may see a time in the future, where our reliance on Chinese products, is a bit less. We just need to wait and watch what the future holds.
This post is a direct reaction to the decision of UK to drop Huawei as their 5G vendor, citing Coronavirus transparency. (The detailed article can be found here. ). The writer, in no way is for or against banning of Chinese products. These are just his thoughts, and his opinion on where the industry is headed.
Share this post with your friends.
Leave a comment with your thoughts and opinions.
Follow The Phone Shrink, to never miss another update, when we post detailed analysis, comparisons, our thoughts and reviews of the latest developments in the smartphone world.
-The Phone Shrink
Thoughts, Opinions, Reviews
The contents of this post are purely opinions of the writer and are in no way targeted to undermine or promote any particular company. These are his thoughts on this topic, and a means to spread information.
images: opensource, link provided on clicking an image.
Very Informative and though provoking
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