Dropping below $100: Chinese smartphones invade Egyptian market
The rise of new Chinese companies is expected, rather than international ones like Sony, Samsung and LG.
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Competition among smart-phone companies in the Egyptian market has reached its peak, as demand for Chinese phones increased while the market shares of other manufacturers decrease.
The low prices of Chinese phones helped them spread widely, which resulted in Chinese companies’ share of the Egyptian market reaching its peak, which set back the market shares of a number of big companies.
Abdel Moneim El-Khawaga, CEO of El-Motaheda Group G-TIDE and ARCOS devices’ agent, believes the expansion of Chinese companies at this time is natural, seeing as 92% of the world’s phones are manufactured in China. He further pointed out that six of the largest 10 companies in the world are Chinese, which gives them experience in the field of smart phones.
Global companies directed their manufacturing to China to make use of its experience, prompting Chinese companies to reduce the cost of their phones.
He added that there is a study saying that in the year 2020, a transformation will take place in terms of smart phones prices, as the prices of 75% of the phones will be less than $100. This will make it harder for global companies to maintain profitability because of the costs and expenses they bear, and that would drive them out of the cell phone market.
The universal map for smart-phones will change, especially after the senior Chinese companies, such as Oppo and Xiaomi, have entered. These companies were predominantly investing in the Chinese market, but because the marked reached a state of saturation, which pushed these companies to invest beyond their local market.
A major change in the smart-phone market is expected during the upcoming years. The rise of new Chinese companies is expected, rather than international ones like Sony, Samsung and LG, excluding Apple as its share in the market will not be affected, due to its loyal consumers.