Comments on: Shanzhai Surprise http://twopointouch.com/2010/business/shanzhai-surprise/ web 2.0, blogs and social media Mon, 30 May 2011 20:58:01 +0000 hourly 1 http://wordpress.org/?v=3.1.3 By: Ianhttp://twopointouch.com/2010/business/shanzhai-surprise/#comment-16464 Ian Sat, 24 Jul 2010 11:50:31 +0000 http://twopointouch.com/?p=2878#comment-16464 All good points, and I undoubtedly oversimplified things for the sake of brevity. These backstreet designers have direct connections to the manufacturers, and not just the ones we've heard of like HTC and Foxconn, but the manufacturers of the parts that those guys use. Also, they can go to cheaper manufacturers than any Western phone brand would ever consider using. All good points, and I undoubtedly oversimplified things for the sake of brevity.

These backstreet designers have direct connections to the manufacturers, and not just the ones we’ve heard of like HTC and Foxconn, but the manufacturers of the parts that those guys use. Also, they can go to cheaper manufacturers than any Western phone brand would ever consider using.

]]> By: Chris Edwardshttp://twopointouch.com/2010/business/shanzhai-surprise/#comment-16461 Chris Edwards Sat, 24 Jul 2010 09:56:16 +0000 http://twopointouch.com/?p=2878#comment-16461 As most manufacturing (and a lot of the design) gets outsourced to China, is manufacturing cost the issue or the business model? IIRC, Chinese mobiles are not subsidised and so don't need the blessing of the operators other than type approval. In the West, good luck selling a phone without a subsidy (as Google and Nokia have found). As operators aren't going to be bothered approving every crazy design that turns up on the doorstep, small batch order phones can't get a foothold. As smartphones become more common and less like phones, I wouldn't be surprised to see more novelty, pre-pay GSM-only gadgets turn up in much the same way as novelty transistor radios and calculators have in the past. As most manufacturing (and a lot of the design) gets outsourced to China, is manufacturing cost the issue or the business model? IIRC, Chinese mobiles are not subsidised and so don’t need the blessing of the operators other than type approval. In the West, good luck selling a phone without a subsidy (as Google and Nokia have found). As operators aren’t going to be bothered approving every crazy design that turns up on the doorstep, small batch order phones can’t get a foothold.

As smartphones become more common and less like phones, I wouldn’t be surprised to see more novelty, pre-pay GSM-only gadgets turn up in much the same way as novelty transistor radios and calculators have in the past.

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