Quantitative Verification of Cost-effectiveness Advantages: Research on China’s Smartphone Export Based on Demand Elasticity Model (2023–2024)

Abstract

In recent years, Chinese smartphone brands have achieved remarkable and far-reaching success in the global market, capturing significant market share and reshaping industry dynamics. This research aims to quantitatively verify that “cost-effectiveness” is its core competitive advantage from the perspective of economics, employing rigorous data analysis and theoretical frameworks to demonstrate how Chinese manufacturers deliver superior value propositions compared to international competitors. By collecting market data from IDC, Canalys and other institutions from the first quarter of 2023 to the second quarter of 2024, this article first describes the trend of China’s mobile phone exports, and then constructs a demand price elasticity model for empirical analysis. The calculation results show that the demand elasticity coefficient of Chinese smartphones is about -1. 8, indicating that the demand is elastic, and the price reduction strategy can effectively stimulate sales growth. The case study further confirms the success of Xiaomi with this model. Finally, this article discusses the challenges faced by this model and puts forward future prospects.