Meizu MX3 to be just $326 thanks to cost-cutting measures such as closing stores and production line
Before Xiaomi appeared on the market, Meizu was China’s only smartphone maker with a cult-like following. It was often referred to as China’s Apple. It sold premium products for premium prices, and built up incredibly good brand recognition over the years. This has been helped in no small part by its numerous stores in the country.
Now though, things are very different. Meizu is no longer the tech darling of Chinese consumers. Xiaomi is. It’s Xiaomi that’s now breaking sales records with its new smartphones. That’s because Xiaomi is basically offering the same promise of quality as Meizu, but with much lower prices. So Xiaomi has quickly risen to the position once held by Meizu – most respected Chinese phone brand.
That said, Meizu isn’t going to just stand by and do nothing. The company is in the midst of a reorganization that aims to make it more like Xiaomi. In short, it wants to be able to sell cheaper smartphones. This has been already seen in the price war that it started last week.
However, Meizu’s greatest move is yet to come. The company wants its next flagship device, the MX3, to cost only 1,999 yuan. That’s approximately $326 or €243 if we go by today’s exchange rates, and it’s 500 yuan cheaper than the starting price for the MX2 from last year.
To achieve this, Meizu has to implement several cost-cutting measures. It looks like it’s going to get rid of all of its physical stores. This process will start in the first quarter of next year, with each store to be shut down thereafter. Furthermore, Meizu will also give up on its very own production line, since it’s apparently cheaper to just contract the phone making work out to Foxconn. Foxconn has already been making some MX2 batches, but apparently for the MX3 it will be the only producer. Meizu’s own production line, aside from being expensive, wasn’t able to make as many phones as the company needed, because of its limited capacity. So Meizu decided that instead of investing some more in expanding it, closing it down entirely made more sense, especially from a cost perspective.
The Meizu MX3 is going to be officially announced on September 2, we found out last week. It’s expected to sport a 5″+ 1080p Full HD touchscreen, a Samsung Exynos 5 Octa processor, 2 GB of RAM, a 13 MP rear camera, and it should be around 8 mm thin. It will run Meizu’s FlyMe OS 3.0, which is based on Android 4.2 Jelly Bean.