In order to prevent Chinese phone manufacturers from selling smartphones for less than 12,000 rupees (about $150), India plans to impose restrictions on them.
India is second only to China in terms of the strength of its smartphone market.
However, the Indian phone business is facing a unique challenge because a significant portion of consumers prefer to purchase cheap phones at incredibly low prices, and in the best cases, some of them purchase phones of medium quality.
The only one of the top three markets in the world that prioritises inexpensive electronics is the Indian market.
This seems to be a problem because it forces phone manufacturers to release phones in India with the poorest specifications, which might force them to raise their prices to raise the calibre of the products they sell there.
Chinese corporations dominate the Indian market for this type of device and generate the majority of sales there; hence, the Indian government’s decision may primarily apply to these businesses while Indian businesses will not be negatively impacted.
The article claims that the Indian government wants to limit competition for large Chinese firms in order to prevent them from entering the Indian market for low-cost phones. This is because they are worried about severe rivalry between Chinese firms like Realme and Transition and their Indian competitors and do not want Chinese firms to unsettle the companies. As a result, Indian manufacturers will be the only ones offering phones under $150.
Since they do not export budget phones, companies like Apple and Samsung are not anticipated to be negatively impacted by the new regulations, but Xiaomi, Realme, and Transsion are most likely to be. However, none of those companies have officially commented.
Chinese phones that cost less than $150 are not allowed in India.
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