Motorola Moto G (Lollipop Out!)

  • Thread starter Thread starter Sushubh
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Couple of reasons...

Low labor cost.
Low development cost.
Low manufacturing cost.
Low IP cost.
Probably lower profits as they make up through larger volumes?

I think the biggest factor here would be that they do not have to worry about patent infringement lawsuits. They can just copy anything they like. Replicate it for cheap. Bigger companies have to spend a lot of money on R&D. Samsung makes processors, chipsets, memory, displays and what not. Companies like Xiaomi benefits from their R&D as they just use the end product.
 
Patents are not global. You have to apply for them in each individual country I think. And I am going to guess that patent laws are not very strong in China. Otherwise, all the companies would be suing each other off rather than focusing on what they do best... Manufacture cheap and sell truckloads.
 
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So they are allowed to sell freely in india with no objections from other manufacturers. I have seen samsung and Apple fight it out trying to ban sales of each other's products in countries like U.S.
 
This probably also explain why Chinese companies are not focused on US market. They do not want to get sued in USA. Oppo did not launch in USA. They created a subsidiary OnePlus which continues to pretend that they have nothing to do with Oppo.
 
In the end, every government wants to protect their local businesses. Chinese government I guess protect local businesses. Otherwise what would they have to offer to the world :)
 
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