The Indian smartphone market is dominated by budget and mid-range smartphones manufactured by Xiaomi, OPPO, and their Chinese peers. However, it seems that the Indian government is going to rectify that very soon. As per a report, India is planning to restrict Chinese OEMs from selling devices cheaper than Rs. 12,000 ($150).
A Bloomberg report suggests that the reason behind this move is to kickstart the failing domestic smartphone industry. Indian OEMs like Micromax and Lava once had a strong position in the Indian smartphone market but after the arrival of Chinese manufacturers like Xiaomi, OPPO, and Vivo, they barely saw any rise in their sales. While this move may strengthen the domestic manufacturers, it will definitely land a huge blow to the Chinese OEMs who dominate the entry-level segment in the country.
In recent years, Xiaomi and other Chinese OEMs have been hugely dependent on India to fuel growth as their home market suffers from a series of Covid-19 lockdowns that have severely hampered consumption. A third of India’s smartphone sales were under $150 in the quarter through June 2022, with Chinese companies accounting for up to 80% of those shipments, according to market research firm Counterpoint.
While this decision will definitely land a huge blow to the Chinese OEMs, Samsung and Apple may not be affected at all because the companies don’t focus on the entry-level segment.
Currently, there has been an official announcement from the Indian Government regarding this move. We are unsure if a new policy will be implemented in this regard or if Delhi will use informal ways to convey its preference to the Chinese companies. The smartphone brands have not commented on this news either. We hope to learn more about it in the near future.
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