Sale of Chinese phones to be banned

0
11

The entry-level smartphone market category in India, which accounts for the majority of sales for Chinese smartphone manufacturers, will no longer be open to them.
In an effort to revive India’s struggling indigenous sector, this policy intends to force Chinese smartphone companies out of the bottom section of the second-largest smartphone market in the world. Due to COVID-19 lockdowns, China’s smartphone manufacturers have been solely dependent on India for growth over the past two years since demand for their home market has decreased.According to market tracker counterpoint, shipments of smartphones priced under $150 made up up to 80% of the sales volume in India for the three-month period ending in June 2022. The impact of this approach may be negative for Chinese businesses like Xiaomi, Realme, and others. If India enacts a ban on China-made mobile phones selling for less than $150, we estimate that shipments of Xiaomi smartphones might drop by 11–14 percent annually, or 20–25 million devices, with sales falling by 4-5 percent. With 66 percent of its devices costing less than $150, it represents 25% of the sector in India, which is Xiaomi’s most significant international market.The impact of this approach may be negative for Chinese businesses like Xiaomi, Realme, and others. If India enacts a ban on China-made mobile phones selling for less than $150, we estimate that shipments of Xiaomi smartphones might drop by 11–14 percent annually, or 20–25 million devices, with sales falling by 4-5 percent. With 66 percent of its devices costing less than $150, it represents 25% of the sector in India, which is Xiaomi’s most significant international market.

By Subhechcha Ganguly