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Let's talk about mobile - Growth of low cost Chinese Smartphone

In Korea low cost smartphones are selling like pancakes. The LG Uplus on Friday acquired
sales of Huawei’s Y6 dual handset, launched last December 16, had already exceed 5,000 units a week. Y6 hast a price tag of W154,000 making the most affordable smartphone in Korea.

LG Uplus also has an exclusive deal for phone, basically gives the phone away free, giving a huge discount even for consumers who sign up for the lowest flat rate of W29,900 monthly.

Unfortunately, 300 Y6 handsets had been sold on the first day, however the sale climbed to 800 a day. Later on the LG Uplus become the sixth bestselling smartphone beating the Samsung’s low end Galaxy A5.

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Huawei original plan is to target 10,000 Y6 unit sales but with this rate it’s impossible to get it maybe they will reach it five to six months. If the Y6 will go well, maybe other low end Chinese smartphone producer like the Lenovo and Xiaomi are more likely to move it, in that case the competition will be tougher for LG and Samsung on their home turf.

The Affordable smartphones produced by Korea’s TG & Co. and made in China’s Foxconn has also been a hit, with a sale extending to 150,000 units since the release last September. Luna is sold via SK Telecom and upgraded the specs of a premium handset for W499,000 or even a half price.

Samsung launched budget friendly smartphone

Samsung is setting up to launch their new budget friendly smartphone in Korea this month of November,  meeting the requires of cheap smartphones. The KT is the second phone operator in South Korea is heading to be the exclusive distributor of this new handset the Galaxy J7 which price range from 300 thousand won or approximately $261 to 100 thousand won or $87 in sales. 
 
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With this step it arrives right after SK Telecom, the rivals of KT, made a decision to launch its own handset Luna in September. This locally manufactured smartphone bough 30 thousand items in two weeks for 300 thousand won. The Galaxy J7 that was pre-launched in China and India last June, the handset sports with 5.5inch screen display, a removable battery and 5 megapixels for front facing camera.

Based to experts, low budget handset is anticipated to generate up to 55% of worldwide market this year, which signifies a boost by 20.4% from 2011.

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