vol.043：China Smartphone Sub-Brand Strategies and Market Dynamics

The source provides an in-depth analysis of the smartphone sub-brand strategy employed by major Chinese manufacturers, particularly focusing on Huawei and Xiaomi. It explains that companies utilize sub-brands, such as Huawei’s Honor and Xiaomi’s Redmi, to target different market segments―specifically, using sub-brands to capture the low-end market while maintaining a premium image for the main brand in the high-end sector. The text contrasts Huawei’s successful strategy of creating a seamless price-range gradient between its main and sub-brands with Xiaomi’s more uneven distribution. Ultimately, the article argues that this sub-brand approach was critical to the growth of Chinese phone makers, though it notes that Huawei’s future is uncertain due to U.S. economic sanctions limiting its access to key components.

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