The competition is tough in all niches and in all markets. But it’s fierce in China, especially. Every day we see new brands appearing on the market and take leave of existing brands. What we see more frequently is the unification of forces. Many like to say it’s a simple merge of two or more companies, but actually, one of them acquires the other. Seems something like this will be announced in the nearest future. According to some rumors the second-tier Chinese tech company, Hammer Technology is going to acquire another Chinese manufacturer Elephone.
There is still no comment from Hammer Technology yet, but we have heard this brand has some problems with enlarging its market. The truth is Smartisan-branded products are quite good in terms of performance, appearance, pricing, etc. But they have a low recognition rate. On the contrary, Elephone that is previously known as a cheap smartphone maker has already launched many interesting products for various niches and has also improved the quality of its smartphones. Moreover, it launches handsets that sport the latest technologies and walk in line with the latest trends.
Say, it is going to announce the pop-up dual-front-camera smartphone soon, namely the Elephone U2. The Elephone A series smartphone not only use a notch screen design but also come with a gradient pack panel. There are also smartwatches, smartbands, sports cameras, panoramic cameras, Bluetooth speakers, and much more in its product assortment. Thus, though the Hammer Technology has been designing higher quality products, because of a poor marketing strategy, it fell through the cracks.
So if this rumor is true and Hammer Technology is going to acquire Elephone, there is every reason to think we will see Smartisan (or anything else) smartphones and other products made not only for the top-end and mid-range niches but for the low-end market as well. Apart from this, the unification of the forces will help both companies to become more competitive in the current market.