But this is just a superficial myth; behind it lies a web of hidden wounds.
With a production capacity of 200 million units, the outcome of competing for less than half of the market's purchasing power is self-evident.
The oversupply has undoubtedly resulted in huge losses for these businesses.
These domestic mobile phone manufacturers may seem to have snatched a large piece of the pie from foreign brands, but little do they know that they are actually completing a market segmentation and screening process.
Behind the apparent success lies the fact that domestic mobile phone manufacturers have captured the low-end market through their price advantage.
Despite the competition over the next two or three years, domestic mobile phones still maintain a considerable market share, but they are increasingly trending towards low-end products.
The mid-to-high-end market, which is the main source of profit, will be entirely occupied by foreign mobile phone brands.
In terms of profits, the real money is made in the mid-to-high-end market.
It can be said that more than half of the high profits of domestic mobile phones come from the mid-to-high-end market rather than the low-end market.
Su Wu estimates that after a brief period of glory in the first quarter of next year, domestic mobile phone manufacturers will be burdened with debt, as the low profit margins will not be enough to support their continued development.
Being technologically dependent on others is an inevitable outcome.
Watching Li Zhi speak eloquently, Su Wu inwardly groaned.
I wonder how many more stock market investors will suffer.
He said earnestly, "I'm not optimistic about the future of domestic mobile phones. It's best to be cautious about investing. If you really want to invest, then invest in my business."
"Third brother, you're not being honest! I don't think you're a good fit. You're making Longyao phones and cooperating with Ericsson?" Li Zhi immediately retorted.
Su Wu smiled wryly, "This is different; I can't explain it clearly in a short time."
Continue read on readnovelmtl.com
