Liang’s company, Xunrui Communications, buys smartphone components and then feeds them to several small factories around Shenzhen, in southern China. There, deft-fingered workers assemble the parts into basic smartphones that retail for as little as $65.
Each chipset costs $5 to $10, depending on the size of a phone’s screen and other features. In total, Liang says, his cost to make a smartphone is about $40. He says he can manufacture as many as 30,000 smartphones a day for brands such as Konka Mobile and for telecom operators like China Unicom. [link]