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Indian govt planning to ban Chinese phones under Rs.12,000, says report

Indian govt planning to ban Chinese phones under Rs.12,000

The Indian government is likely to ban Chinese phones under Rs. 12,000 or $150, apparently, in a bid to push homegrown smartphone manufacturers. The move would be a blow to Chinese smartphone giants like Xiaomi, Poco, and Realme, among other companies, who rule the lower segment of the world’s second-biggest mobile market, according to the Bloomberg report,

Reports suggest Chinese companies have been dominating the affordable smartphone segment for the last several years now. Smartphones under Rs 12,000 account for a third of phone sales volume in India, out of which, 80 per cent of those shipments come from Chinese companies, according to market tracker Counterpoint.

The Indian government has yet not made any announcement about policies to execute the block on Chinese smartphone companies, Bloomberg said, citing people familiar with the matter. Indian smartphone manufacturers such as Lava and Micromax became popular when launched a few years back, but lost market share while facing tough competition from Chinese firms who now account for a major chunk of entry-level smartphones.

The tension between India and China amplified back in early 2020 after more than a dozen Indian soldiers died following a clash between the two countries on a disputed Himalayan border. Since then, Delhi has banned more than 300 apps, including one of the fastest growing apps TikTok and PUBG. Recently, the government ordered Google and Apple to pull down the Battlegrounds Mobile India (BGMI) app or the Indian version of PUBG Mobile from the Play store as well as the Apple App store

According to recently released IDC’s quarterly report, smartphones demand in India is shrinking due to rising inflation and higher input costs, resulting in high retail prices. Reports suggest that the average selling price (ASP) of smartphones in the country reached a new high of $213 (approx. 16,957) in the June quarter (Q2) of 2022.

Talking about the premium smartphone segment of US$500+ is the highest growing segment with 83% growth YoY. It contributes to 6% of the market wherein Apple continued to dominate with 53% share, followed by OnePlus (19%) and Samsung (15%).

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