China’s smartphone sales under Rs 12,000 are likely to be prohibited in India

Another setback for Chinese businesses is that the Indian government is reportedly considering prohibiting Chinese smartphone makers from selling devices for less than Rs 12,000 in the country. 

Potentially, the objective is to promote domestic businesses like Lava and Micromax. With the exception of Samsung and a few other non-Chinese manufacturers, Chinese smartphone makers now dominate the sub Rs 15,000 pricing bracket or the budget smartphone segment.

The Indian government intends to encourage domestic smartphone manufacturers, according to a Bloomberg article. If the decision is made, it would undoubtedly affect sales for firms like Xiaomi, Poco, and Realme, among others, which have dominated the market for inexpensive smartphones for a number of years.

According to Counterpoint Research, shipments of smartphones priced under Rs 12,000 accounted for up to 80% of all sales in India for the three months ending in June 2022.

China and India have been at odds for a long time. Recently, a few Chinese smartphone manufacturers have come under fire. The ED has recently brought charges against a number of Chinese companies, including Xiaomi, Vivo, and Oppo, for alleged tax cheating. In a recent money laundering investigation, the Enforcement Directorate actually froze Vivo’s bank accounts. Later, the company pleaded with the authorities to unfreeze the bank accounts so that it could continue operating in the nation.

It should be emphasised that the Indian government has yet to formally reveal its plans to prohibit Chinese phone manufacturers from selling phones for less than Rs. 12,000, and if they do, how they intend to go about doing so.

The Indian government is interested in Chinese apps as well as smartphone manufacturers. The Battlegrounds Mobile India (BGMI) software, also known as the Indian version of PUBG Mobile, has recently been removed from the Apple App Store and Play Store by order of the government. In India, you may no longer download the BGMI mobile game. The motive for prohibiting the mobile game in the nation has not been stated by either the government or the game creator.