According to reports, the Indian government is considering the possibility of banning Chinese smartphone makers’ ability to sell their products for less than Rs 12,000, which is roughly equivalent to $150. The goal may be to encourage domestically produced businesses such as Lava and Micromax. Samsung and a few other non-Chinese businesses have managed to grab some market share in the budget smartphone segment, often referred to as the under Rs 15,000 pricing group. Although Chinese phones banned in India Will now dominate this market segment.
Chinese phones banned in India
India wants to prevent Chinese smartphone makers from selling handsets below Rs 12,000 ($150) in order to boost its local area. This will be a big blow for companies like Xiaomi Corp.
According to people aware of the situation, efforts are being made to forcibly oust Chinese companies from the bottom half of the world’s second largest mobile market. [Citation needed] He claimed it was undercutting local manufacturers with growing concern about high-volume brands like Realme and Transsion, but asked not to be named as they were addressing a sensitive issue.
Due to a succession of COVID-19 lockdowns that have paralyzed its domestic market, Xiaomi and its competitors have relied on India to fuel their growth. These companies will be adversely affected if these companies are kept out of the entry-level market in India. According to market tracker Counterpoint, shipments of smartphones under $150 in India accounted for 80 per cent of total shipments during the three months to June 2022. These shipments accounted for a third of the country’s total sales volume. ,
government schemes Chinese phones banned in India
If India passes a law prohibiting Chinese-made mobile phones with a retail price of less than $150, our calculations show that Xiaomi’s smartphone shipments could drop by 11-14% every year, which That equates to 20-25 million units, and sales may decline. From 4-5%. According to sources, it accounts for 25 percent of the region in India, which is Xiaomi’s most important overseas market, with 66 percent of its smartphones priced under $150. India is the country where Xiaomi has had the greatest success in selling its products internationally.
Xiaomi and its competitors Oppo and Vivo have been subjected to a thorough financial review by New Delhi in the past. Money laundering charges have also been filed as a result of these actions. In the past, the government has used informal measures to ban the sale of telecom equipment manufactured by Huawei Technologies Co and ZTE Corp. Wireless carriers are being pushed to acquire the option, despite the fact that there is no formal regulation that restricts its use. Chinese networking hardware.
Will it affect other smartphone companies?
Due to the high prices they sell their phones for, Apple Inc. and Samsung Electronics Co should remain unaffected by the change. We reached out to representatives from Xiaomi, Realme and Transsion, but they did not respond to our queries. Similarly, spokespersons for India’s Ministry of Technology did not respond to requests from Bloomberg News. Before new competitors from the neighboring country troubled the market with low-cost and feature-packed handsets, half of India’s smartphone sales were done by domestic businesses such as Lava and Micromax.
After a clash between two nuclear-armed rivals over a disputed Himalayan border in the summer of 2020 that resulted in the deaths of more than a dozen Indian soldiers, India increased the amount of pressure it was applying to Chinese businesses. As a result, it has subsequently banned over 300 applications, some of which include WeChat by Tencent Holdings Ltd and TikTok by ByteDance Ltd. This step comes at a time when the relations between the two countries are continuously deteriorating.
12000. Ban on Chinese phones under
As Jio PhoneNext has grown over the past several quarters, Chinese brands dominate 75-80 per cent of these volumes. Both Realme and Xiaomi account for fifty percent of this market, which means they now hold a dominant position,” said Pathak.
Transsion Holdings, which is headquartered in Shenzhen, is a significant competitor in the bottom segment and budget segment of the market in the country. Infinix, Tecno and Itel are some of the brands that the company represents. In the second quarter of 2018, Transsion Group had a 12% market share in India’s handset market, which includes Itel, Infinix and Tecno.
According to Counterpoint Research, Tecno ranked second in the under Rs 8,000 smartphone segment in the country, while itel won the under Rs 6,000 smartphone segment with 77 per cent share.
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