Chinese smartphone companies under siege, government tightens grip, this will affect you


Chinese brands like Xiaomi, Oppo, Vivo and Realme account for 80 percent of the Indian smartphone market. The slowdown in the smartphone industry and raids by Indian probe agencies have affected the Chinese brand. These companies are very worried about their future in India.

Chinese smartphone companies are in trouble.

Image credit source: TV9

Fear of an economic downturn, falling demand and government investigations Chinese smartphone A headache for brands. The result is that these Chinese companies no longer exist employees are laying off, but may also reduce their spending for next year. If this happens, it will definitely have a big impact in India. Chinese brands like Xiaomi, Oppo, Vivo and Realme account for 80 percent of the country’s smartphone market. Today we will tell you why these companies are facing so many problems.

Smartphone brands start their plans and estimates for the upcoming year from October-November. However, the Indian smartphone industry is currently facing an economic downturn. The result is that Chinese brands may want to make any investment decisions in the coming year very carefully. That’s why Indian users may face a dearth of cool and affordable smartphones.

That’s why Chinese phone brands are worried

  1. Financial Crisis: Indian smartphone market is sluggish. According to the Economic Times, Navkendra Singh, associate vice president of IDC India, said there are many uncertainties among Chinese companies. No one is committed to the type of investment in marketing and distribution in the coming year.
  2. Government Enquiry: Many Chinese smartphone brands are under scrutiny in India. Government agencies are investigating smartphone companies like Xiaomi, Oppo and Vivo. The government’s austerity is also affecting their work. For example, IDC India estimates an 8-9 percent decline in smartphone shipments in the fourth quarter of this fiscal.
  3. Classification: In the last few quarters, Chinese smartphone companies doing business in India have retrenched here. These companies are taking the path of layoffs to cut costs. Sanjay Shetty of Randstad India says that these companies have laid off 600-800 employees.
  4. Promotion of Indian Brands: Chinese smartphone companies are not liking the government’s promotion of Indian companies. The Government of India is providing financial support to Indian smartphone companies for phone production under the Production-Linked Incentive (PLI) scheme. A brand like LAVA will benefit from this.
  5. Retailers: Chinese smartphone companies are very important for Indian smartphone retailers. Most Chinese phones are sold in India, so most retail stores are also of brands like Xiaomi, Oppo. Companies provide incentives to retailers and if incentives are not provided, 20-30 percent of retail stores may decline in the next few years.
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