Which company earns the most on selling phones? The truth will surprise

In fact, mobile companies give different types of margin and incentives to shopkeepers to push their phones into the market. Companies whose phones are less popular or who have to promote more, they give big profits to shopkeepers so that they can convince customers to buy the same phone. At the same time, the brands who have a strong hold in the market give less margin to the shopkeepers, because their phones are easily sold.

For example, if the customer buys a company like Apple or Redmi, the shopkeeper does not benefit much. The demand for the phone of these companies is already so much that customers buy them without explaining them. Therefore, shopkeepers get a very limited margin on these phones. On the other hand, Chinese companies like Oppo, Vivo and Reality give shopkeepers a chance to earn more on their phones. The business model of these brands is that retailers should be given an attractive margin to get maximum market share.

This is the reason why you have often seen that when you go to a shop and ask about a particular phone, the shopkeeper repeatedly tries to pull you towards a phone like Oppo or Vivo. Actually, this happens because these companies get more profit on selling phones. Many times companies also give shopkeepers selling targets every month. If they meet that target, then they are also given facilities like additional bonus, gift or trip.

According to reports, shopkeepers on some budget and mid-range smartphones can get a margin of 10 to 15 percent, while this margin is barely 3 to 5 percent on the premium brands’ phones. That is, if the shopkeeper earns a few hundred rupees by selling an iPhone, then on the other hand he can earn up to thousands of rupees on selling Oppo or Vivo phone. However, many retailers get a margin of about 14 to 15 percent on Samsung’s phones.

This does not mean that the shopkeeper always wants to harm the customer, but he tries to increase his sales while earning more profits. But it is necessary for the customer to read the complete information and review of the phone before going to the shop so that he does not take any wrong decision only after coming to the shopkeeper’s talk.