Indian Govt Doesn’t Want Chinese Companies Winning in Super Affordable Smartphone Segment

According to market researcher Counterpoint, up to 80% of low-cost phone shipments in India in Q2 2022 were made up of Chinese handsets.

Published by
Palak Sharma

India

India wants to stop Chinese smartphone manufacturers from selling products for less than Rs 12,000 in an effort to revive its flagging local industry, which will hurt companies like Xiaomi. According to those with knowledge of the situation, the initiative aims to drive Chinese companies out of the second-largest mobile market worldwide’s lower segment.  Bloomberg said that they claimed, while requesting anonymity, that it corresponds with growing worries about high-volume companies like Realme and Transsion undercutting local manufacturers.

Exclusion from India’s entry-level market would be detrimental to Xiaomi and its competitors, who have relied on India more and more recently to fuel growth as their domestic market has been subjected to a number of Covid-19 lockdowns that have severely hampered consumption. According to industry researcher Counterpoint, shipments of smartphones

priced less than Rs 12,000 made up to 80% of the sales volume in India for the three months ending in June 2022. During the last few minutes of trading on Monday in Hong Kong, Xiaomi’s shares continued to decline. It decreased by 3.6%, bringing this year’s loss to more than 35%. The insiders said it’s uncertain whether Prime Minister Narendra Modi’s administration will make any announcements or use unofficial methods to express its preference for Chinese businesses.

Xiaomi and rival Chinese companies Oppo and Vivo have already been the target of intense financial scrutiny by New Delhi, which has resulted in tax demands and claims of money laundering. The government has used illegal methods in the past to outlaw Huawei and ZTE telecom equipment. Although there isn’t a formal policy that forbids Chinese networking equipment, wireless operators are urged to buy alternatives. Due to their higher phone prices, Apple and Samsung shouldn’t be impacted by the change. Requests for comment from Transsion, Realme, and Xiaomi representatives went unanswered.

In the summer of 2020, India increased pressure on Chinese businesses after a confrontation between the two nuclear-armed neighbours on a disputed Himalayan border resulted in the deaths of over a dozen Indian soldiers. As ties between the two nations deteriorate, it has since blocked more than 300 apps, including Tencent’s WeChat and ByteDance’s TikTok. Before new competitors from the neighbouring country upset the market with affordable and feature-rich smartphones, domestic manufacturers like Lava and Micromax accounted for slightly less than half of India’s smartphone sales.

The majority of smartphones are currently sold in India by Chinese companies, but the junior IT minister of India told the Business Standard newspaper last week that their market domination was not based on free and fair competition. Despite their dominant position, the majority of Chinese handset manufacturers in India consistently incur annual losses, which fuel accusations of unfair competition. The government is still privately requesting that Chinese executives develop local supply chains, distribution networks, and export goods from India, indicating that New Delhi still values its investment extremely highly.

Palak Sharma

Palak believes that creativity and simplicity are the keys for the best articles, it helps people to understand your point in a right way. She is also a traveller, love to explore new places, meeting new people and to know about different cultures and religions is what she love. She thinks writing is an art and when a artist holds a pen they create magic with their words.

Share
Published by
Palak Sharma

Recent Posts

BSNL and BBNL Merger Almost Complete Now

Bharat Sanchar Nigam Limited (BSNL) and Bharat Broadband Network Limited (BBNL) merger is almost complete…

Reliance Jio’s Most Affordable 2GB Daily Data Plan, Take a Look

Reliance Jio has the overall 4G network when it comes to 4G availability and 4G…

Vodafone Idea has the Best Postpaid Plan You can Get in India Under Rs 1000

If you are looking for a decent postpaid plan, Vodafone Idea has got you covered.…

Airtel Brings RewardsMini, a New Additional Benefit with Rs 999 Plan

Bharti Airtel, the second-largest telecom operator in India, has introduced a new additional benefit for…

Airtel has Two Plans Which Jio and Vi Can’t Compete With

Bharti Airtel, the second-largest telecom operator in India, has two prepaid plans with which Reliance…

Check this 50 Mbps Broadband Plan with 7 OTT Apps

If you are working from home or learning from home, you need a stable and…

OTT Apps Regulation is a Step to Secure Users: Telecom Minister

The Draft Telecom Bill 2022 was released by the Department of Telecommunications (DoT) a few…

Will BSNL Ever Make a Comeback

BSNL (Bharat Sanchar Nigam Limited) wants to make a comeback, and the only way it…

5G in C-Band a Concern for Indian Aviation Regulatory Body

The Directorate General of Civil Aviation (DGCA) has some concerns with the rollout of 5G…