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TheStreet Open House

Coolpad's Smartphone Is Hot in China but Little Threat to Apple, Samsung

But the emphasis on research and development by four-year-old Yulong Telecommunications has given Coolpad a single feature that should hold its place in China, another vendor says.

It sells mainly to the lower tier, which describes the biggest share of Chinese consumers, but with the specs of higher-priced Android handsets.

Coolpad marketing is simple and traditional (read “cheap”), a PR executive in Guangzhou says, while the production scale is huge, earning the developer money even at low prices.

Read More: How Tiger Woods Becomes Zynga's Last Hope for Glory

This market dynamic -- typical of emerging China – will not threaten Apple or Samsung because both sell to the high end. But it threatens lower-priced rivals such as HTC (traded in Taiwan) and homegrown PC-smartphone makers such as Lenovo and Huawei.

At the time of publication, the author held no positions in any of the stocks mentioned, although positions may change at any time.

Ralph Jennings is on LinkedIn.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

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