Cheap Chinese smartphones take on Apple as 5G moves forward

[Klaralven]

TOKYO -- Low-cost Chinese smartphones that can take advantage of high-speed 5G communications have entered the Japanese market. Through SoftBank, Chinese manufacturer Xiaomi has introduced a model costing just under 20,000 yen ($183), excluding tax. Until now the iPhone has been the popular choice in Japan, thanks to its high quality, but the challenge from Chinese models could trigger a race to cut prices.

Xiaomi's Redmi Note 9T, sold exclusively through SoftBank in Japan, made its debut on Feb. 26 with claims that it had far and away the best cost performance when it comes to 5G. The device has a sticker price of 19,637 yen, or 21,600 yen with tax. If certain conditions are met, such as signing a new contract with SoftBank and applying for a student discount, the phone retails for just 1 yen.

"Customers who like new products are coming to try out the actual device," said a staff person at a major electronics retailer in Tokyo.

While the Redmi Note 9T has a 48-megapixel camera, its system-on-chip -- the brain of the phone -- is made by Taiwan's MediaTek, not Qualcomm of the U.S. Costs were further reduced by using a liquid-crystal display.

Xiaomi entered the Japanese market at the end of 2019. Just before its initial public offering in 2018, it was known for keeping profit margins on hardware products, including smartphones, below 5%. The company took the unusual step of declaring it would be unpopular with shareholders because it would provide a wide range of affordable products.

https://asia.nikkei.com/Business/China-tech/Cheap-Chinese-smartphones-take-on-Apple-as-5G-moves-forward

[multigraincracker]

1. Thanks, I've been thinking of getting a new iPhone.

Mine is getting pretty wore out, but still works. Now I think I can wait and see if the prices come down.

[Beakybird]

2. Wouldn't a Chinese phone be filled with malware?

[joetheman]

3. I am onw who believes that smart phones never needed to cost as much as they do.

Greed for obscene profits is US motivating factor. It leaves out a huge chunk of citizens who would benefit from access to technology and raise national intelligence base. But then, why do we want a "well informed citizenry?"