Chinese company upgrades mid-range phones to a higher-end model.

After many years of presence in Vietnam, Chinese companies are still striving to improve their position by selling smartphones at higher prices.

Chinese manufacturers are quietly upgrading their mid-range products to move them up to the higher price segment.

Upgrading devices after each lifecycle is a given. Along with that, manufacturers usually want to increase the price of their devices, especially in the mid-range segment. However, the Vivo V70 series, launched earlier this year, represents a significant leap forward compared to its predecessor. Market dynamics, coupled with a component shortage, are driving this "premiumization" process, which has been quietly underway.

Priced at 18 million VND, the Vivo V70 enters a segment where users can "spend a little more" to buy flagships like the Galaxy S25 or iPhone 17. The features added by the manufacturer must be powerful enough for the device to be competitive.

Vivo's plan

Like its competitors such as the Galaxy A5x and Oppo Reno, the Vivo V series also started in the mid-range segment, priced at 7-8 million VND. After many years, all of the aforementioned products have now shifted to the 12-15 million VND price range. This process has happened quietly, with price fluctuations of 500,000-1 million VND with each new launch.

Earlier this year, Vivo clearly demonstrated its premium pricing strategy by raising the price of its V70 model to 18 million VND. This occurred during a period when manufacturers were struggling with a memory chip crisis due to the global AI race. This new situation left the budget segment with little room for maneuver, as production costs were concentrated on RAM and ROM components. The general market trend was price increases, even among manufacturers that traditionally positioned themselves as offering high-performance, low-cost options like Xiaomi and Realme.

The V70 model reaches a price point of 18 million VND.

Vivo launched its flagship Vivo X series with three models, the highest-priced at 50 million VND in Vietnam. This strategy helps to boost brand positioning and create a sufficiently large price gap to differentiate the V series. The products benefit from some of the technology and reputation of the more expensive models.

Finally, Vivo simultaneously introduced the V70FE, priced at 14 million VND. In this way, the old market segment was taken over by a new product.

Vivo's approach isn't new. Xiaomi and Oppo are also constantly looking to add more expensive options to fill the upper-mid-range segments, such as the Xiaomi T series or Reno Pro. In this context, launching a flagship is a crucial step these manufacturers must take to enhance their brand positioning.

Added value

Pricing strategy is one aspect; the premiumization process still depends on the product itself. To sell at a higher price, manufacturers must provide added value that justifies the cost paid by the customer.

In terms of hardware, the V70 model is equipped with a new high-energy-density Silicon Carbon battery. The device focuses on portability, being only 7.4 mm thin but still boasting a 6,500 mAh battery, 30-40% larger than similarly sized Apple and Samsung smartphones. This solution helps increase usage time to 9-11 hours with mixed tasks.

The camera is also a key feature, often becoming more prominent once the phone moves beyond the mid-range segment. The V70 is supported by Zeiss optics and Sony hardware, and features image stabilization. Compared to most mid-range phones, Vivo offers a versatile camera system with three focal lengths up to 85mm for capturing images in various conditions.

The device is equipped with enhanced imaging and battery solutions to compete with previous iPhone models.

However, the segment limitations mean that the camera sensors are not very large. This will be a drawback when shooting photos and videos in low light, requiring AI intervention.

In terms of software, the manufacturer offers various film color simulations, similar to options on Fujifilm cameras such as Classic Chrome, Classic Negative, etc., which are popular among young people today. Currently, only Oppo on the market offers a similar solution.

Vivo doesn't usually rely on performance power to compete. However, the Snapdragon 7 Gen 4 is still a familiar processor, highly regarded in the mid-range and upper-mid-range segments for its speed and gaming compatibility. The V70 only falls short when compared to older flagship models that have seen price reductions. However, given the current chip shortage, a price drop for high-end devices is unlikely.

Compared to previous generations, OriginOS is a major plus for recently launched Vivo devices. The new interface is modern, regularly updated, and offers many customization options. However, the devices still lack the "trendy" AI-powered tools found in competitors and need further upgrades from the manufacturer in the future.

The upward trend in smartphone prices has been predicted and may continue. Currently, low-priced options are becoming increasingly scarce or of declining quality. The 18 million VND price tag for Vivo's V series is surprising, but it could become the "new normal" in the next 1-2 years. The same could happen with Xiaomi, Oppo, or Samsung phones.

The biggest competitor to these models is older iPhones. When the price increases to 18-20 million VND, customers have more options with Apple phones released the previous year. They still have good specifications, high-end hardware, and a smooth iOS. In return, these phones often lack new technologies such as multi-focal cameras, have poor battery life, and are missing AI features.

Source: https://znews.vn/hang-trung-quoc-cao-cap-hoa-dien-thoai-tam-trung-post1650399.html