Brands like Redmi, Realme, Vivo, Motorola are launching cheap smartphones every day. Despite having good hardware features, smartphones of these companies are launched at a much lower price than smartphones of brands like Samsung, OnePlus, Nothing, Google. Not only this, good offers are also given by the company on the purchase of smartphones of these brands. You might be wondering, despite providing good hardware, how do these companies earn money by selling phones at cheap rates? Don’t think, we will explain its complete mathematics to you.
Earning is done through hardware
The price of any smartphone depends on the hardware installed in it and the manufacturing cost. Also, brands have to leave some profit margin for every unit to their online and offline retailers. Chinese brands launch most of their smartphones in India by rebranding the phones launched in the domestic market. They earn money by making slight cuts in the hardware features of those phones. However, hardware is not the only source of revenue for brands. The company earns more than this in other ways.
Big money is earned from pre-installed apps (bloatware)
Most of the smartphones of Chinese brands earn money through the apps already present in the phone i.e. bloatware. A common user does not pay attention to these apps while setting up the smartphone and installs them on the phone. After this, ads keep coming to the phone through these apps. These ads are the main source of earning for smartphone companies.
If you have recently purchased a budget or cheap smartphone from these brands, then you must have seen many bloatware already present in the phone. These bloatware help these brands earn money through ads and data mining etc. However, recently, after the dissatisfaction of the users and the strictness of the authorities, many brands are launching smartphones without bloatware. Also, users have the option to disable or uninstall these bloatware.
Be careful while setting up the phone
While setting up a new smartphone, always keep these things in mind that if you get a suggestion to install any third party app on the phone, then setup the phone without selecting any app. After setting up the phone, download only the app you need from Google Play Store. After downloading the app, give them only the necessary permissions. Do not give permissions for location, camera, media, phone calls, messages etc. By doing this your personal data may fall into the hands of advertisers or cyber criminals.