The Indian government is considering ``banning the sale of cheap smartphones made in China''

With over 1.3 billion people, India has become an important market for Chinese companies selling low-end smartphones. However, overseas media Bloomberg reported that the Indian government is seeking to ban the sale of cheap Chinese smartphones that cost less than 12,000 rupees (about 20,000 yen).

India Seeks to Ban Chinese Phone Brands From Selling Devices Under 12,000 Rupees - Bloomberg
https://www.bloomberg.com/news/articles/2022-08-08/india-seeks-to-oust-china-firms-from-sub-150-phone-market

India Seeks To Ban Chinese Phones Cheaper Than Rs 12,000: Report
https://www.ndtv.com/india-news/india-seeks-to-ban-chinese-phones-cheaper-than-rs-12-000-report-3236089

India seeks to ban China budget phones - Android Authority
https://www.androidauthority.com/india-china-budget-phones-3194357/

In China, lockdowns related to the new coronavirus infection (COVID-19) often occur , which has a negative impact on the consumption behavior of the people. Under such circumstances, Chinese companies are looking to overseas markets as a driving force for growth, and smartphone makers such as Xiaomi and Realme are increasing their dependence on India, the world's second largest market for low-end smartphones. According to market research firm Counterpoint , one-third of the smartphones sold in India in the quarter to June 2022 will be entry-level models priced at less than $150, with up to 80% of them coming from Chinese companies. It was shipped by

However, Bloomberg reports that the Indian government is considering ``banning the sale of cheap smartphones for less than 12,000 rupees by Chinese manufacturers,'' as testimony from an anonymous informant. This move is said to be aimed at revitalizing the sluggish domestic industry in India, and is expected to hit Xiaomi, Realme, Transsion, etc., which sell cheap smartphones in India.

According to Bloomberg's analysis, if China's smartphone sales of less than 12,000 rupees are banned in India, Xiaomi's smartphone shipments will decrease by 11 to 14% annually, or 20 to 25 million units, and sales It is estimated that the high will fall by 4-5%. According to IT-related research company IDC, India is the most important overseas market for Xiaomi's low-priced smartphones, and 66% of Xiaomi smartphones sold in India are in the price range of less than 12,000 rupees. .

In the Indian smartphone market, domestic companies such as Lava and MicroMax used to account for less than 50% of sales, but the influx of cheap smartphones from Chinese manufacturers has weakened the power of domestic companies. It is expected that these domestic companies will regain their competitiveness as the exclusion of Chinese companies progresses.

There are also voices of dissatisfaction within the government against Chinese companies that dominate the smartphone market, such as India's deputy science and technology minister telling the business magazine Business Standard that it is not based on free and fair competition. going up Although many Chinese smartphone makers occupy a large share in India, the fact that they are posting annual losses is also a factor in strengthening criticism that it is unfair competition.

The Indian government has been tightening its grip on Chinese companies for some time, and smartphone makers such as Xiaomi and Oppo are being closely monitored under suspicion of tax fraud and money laundering. It has also unofficially ordered carriers to ban Huawei and ZTE telecom equipment in the past. Regarding the ban on the sale of smartphones less than 12,000 rupees by Chinese companies, it is unknown whether it will be communicated to companies through unofficial routes or whether Prime Minister Narendra Modi will officially announce the policy.

There have been frequent military clashes between China and India in the border area of the Himalayas, and in recent years a large number of Chinese apps have been banned in India. I'm here.

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