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India to block sale of Chinese phones priced below $150: Report – WION

In order to increase the chances of domestic businesses, India is reportedly trying to prevent Chinese companies from accessing its sub-$150 (Rs 12000) phone market, according to a report from Bloomberg News on Monday, citing anonymous sources. The change, according to the article, would be devastating for Chinese businesses like Xiaomi and Realme.

As per the Bloomberg story, the effort is intended to force Chinese goliaths out of the lowest section of the second-largest mobile market in the world.

They claimed it correlates with growing anxiety over high-volume brands undercutting local producers, such as Realme and Transsion. They declined to be named because the conversation was delicate.

China cannot afford to give up on the Indian market at this time. After China, the nation of over 1.3 billion people in South Asia is the largest market for smartphones globally.

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Xiaomi and the other firms involved will suffer a great loss if the entry-level market in India is closed off. These businesses have experienced significant growth in the Indian market following the Chinese lockdown thanks to the potential there. 

The coronavirus in China nearly put an end to the market for phones because people there are already technologically sophisticated and have access to smartphones. 

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Smartphones priced under $150 made up a third of sales in the three months ending June 2022, according to market researcher Counterpoint. And in that, Chinese smartphone manufacturers held an 80% stake.

Xiaomi and its rivals, Oppo and Vivo, have already been exposed to intense financial examination by New Delhi, which has resulted in tax demands and claims of money laundering. The government has already used clandestine methods to outlaw communications equipment made by ZTE Corp. and Huawei Technologies Co. Although there isn’t a formal policy that forbids Chinese networking equipment, wireless operators are urged to buy alternatives.

Since Apple Inc. and Samsung Electronics Co. charge more for their phones, the change shouldn’t have an impact on them. Requests for comment from Transsion, Realme, and Xiaomi representatives went unanswered. Inquiries from Bloomberg News went unanswered by the technology ministry of India’s spokespeople as well.

(With inputs from agencies)


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