After introducing the PLI scheme for mobile phones, the Government is likely to restrict Chinese smartphone makers from selling devices under Rs. 12,000. The move is expected to help Indian smartphone manufacturers, including Micromax, Lava, and others.
It is worth noting that Chinese smartphones are dominating the Indian handset market, especially in Rs. 15,000 segment. However, Samsung has also managed to garner some share in the smartphone market in the country.
According to the Bloomberg report, the Government is planning to promote Indian handset makers; however, this move is likely to affect the sales of leading Chinese smartphone makers Xiaomi, Realme, Oppo, Vivo, Infinix, Tecno, itel, Poco, and Infinix.
Chinese Smartphone Sales In India: Details
For the unaware, under Rs. 12,000 smartphone segment is the highest selling that accounts for almost 80 percent of the exact sales of these companies as per Counterpoint report.
“Xiaomi smartphone shipments may fall by 11-14 percent a year, or 20-25 million units, with sales decreasing by 4-5 percent, we calculate if India enacts a ban on China-made mobile phones retailing under $150. It accounts for 25 percent of the segment in India, which is Xiaomi’s most important overseas market, with 66 percent of its smartphones priced under $150,” IDC’s analysts were quoted by Bloomberg.
Meanwhile, Firstpost reported that one of the Chinese smartphone company is already planning to increase the cost of the devices due to high input costs.
It is important to note that the Indian Government is investing in all Chinese brands. Recently, Vivo, Oppo, Xiaomi, Huawei, and more Chinese smartphone companies are under tax invasion cases. The Government banned more than 200 Chinese applications in 2020.
The Print also reported that the Ministry of Corporate Affairs recorded more than 700 cases against all those companies that have Chinese links. This clearly shows that the Chinese companies are under strict surveillance.
