Chinese Smartphones Under 12K: Sources claim that this action will effectively exclude Chinese manufacturers from the low-cost phone market in India. Because of Chinese brands, local producers cannot compete. Therefore, the idea of easing their burden is considered.
low-cost phone After that, can you recall the names of Chinese corporations? India now wants to alter it. The central government wants to stop Chinese companies from flooding the market with devices that cost less than 12,000 rupees. Brands like Xiaomi will consequently experience immediate consequences.
Sources claim that this action will effectively exclude Chinese firms from the Indian market’s low-priced phone segment. Because of Chinese brands, local producers cannot compete. Therefore, the idea of easing their burden is considered. This information came from an unnamed source.
Most phones are Chinese
If Xiaomi and other such businesses are shut out of India’s entry-level market, they will suffer severe losses. Chinese businesses that depended on India have prospered in recent years. Market watcher Counterpoint claims that there is a sizable market for cellphones priced around $150. In the three months ending in June 2022, this market category accounted for one-third of all smartphone purchases in India. And 80% of them are phones made by Chinese companies.
adverse effects on the stock market
As soon as this news became known, Xiaomi’s shares decreased. Trading on Monday saw significant losses for Hong Kong. Shockingly, shares dropped 3.6 percent. This year, Xiaomi stock has decreased by almost 35%.
Indian smartphone manufacturer
At one point, domestic companies like Lava and Micromax were expanding quickly. But thanks to the forceful influence of Chinese smartphones, they appear to have vanished. Micromax is unable to compete despite having enormous cash, clever marketing, low prices, and high-quality specifications.
Separately, the government is advising Chinese businesses to create local supply chains and distribution networks as well as to export from India. This demonstrates that Beijing is still keen in investing in the Indian market, according to New Delhi. However, the Center is also thinking about how to avoid damage to local organizations.