Apple and Samsung will shortly have more competition from China. China has cheaper smartphones coming, courtesy of manufacturers: Huawei, Xiaomi and ZTE.
These companies apparently can churn out high-quality models for $300 or less. By comparison, Apple’s latest iPhone costs $650 without a cell service contract.
Many established phone makers will feel the pressure coming from China.
Samsung and Microsoft and looking to lose out as consumers gain options and look to save money on phones. Cell service providers are phasing out subsidies that partially offset the cost of new phones, so shoppers are becoming very price conscious.
Even Apple could suffer eventually. Sales of the iPhone are currently believed to stay strong, by their followers who purchase every update available. Without big innovations to keep the iPhone distinct from cheaper offerings, Apple’s sales will start to slip, as well.