In China, low-priced smartphones, produced by companies like ZTE and Huawei Technologies, are becoming very popular.
This trend is opening a new market space that is different from usual expensive smartphones and thus it has become a challenge for the devices produced by foreign companies like Apple's iPhone.
China, which happens to be the largest mobile market in the world as per number of subscription, is also a key competitive place for the makers of smartphones.
ZTE and Huawei, who are makers of network equipments for telecommunications operators, are also focusing on providing an alternative of the usually expensive smartphone devices such as iPhone and Samsung's Galaxy SII smartphones.
A number of models of smartphone have been launched by these companies for around 1,000 yuan which is $147 reports The Australian (opens in new tab). Because of the low cost the subscribers who are unable to buy Apple, Samsung or HTC are heading towards these smartphones, thus giving an opportunity to low-cost smartphone producing companies a chance to grow.
Even though Apple and Samsung are the market leader in many countries, in China the subscribers are price-sensitive making it tough for them to survive.
The Chinese smartphone market till date is high-end and Apple, Samsung are the market leader. But, if analysts are to be believed then the low-priced market of the smartphone is blooming rapidly.