India Wants Low-end Chinese Phones Out
According to local press, the Indian government is looking to limit Chinese smartphone brands from selling devices priced below 12,000 rupees, the equivalent of ~$150 in order to preserve local manufacturers. While the Indian market is based on a wide variety of brands, very low-end phones are predominantly produced by Indian brands, with prices running as low as $7.30 for a 2G dual camera (0.3MP) phone with a 1.8” display. Roughly 1/3 of sales volume thus far this year in India is with phones under $150.
The first 3G offering starts at ~$20.75 and there are many models to choose from in those price ranges, so the government, while encouraging smartphone brands to enter the Indian market and manufacture locally, seem to be reserving the low-end market for those that produce at home. Chinese brands do offer some of those very low-end phones but popular Chinese brands like Xiaomi (1810.HK), Oppo (pvt) and Vivo (pvt) rely on phones in the $100 to $200 range given the average price of a smartphone in India was $211 in 1Q of this year. High end brand names will likely not be affected to any large degree.
The first 3G offering starts at ~$20.75 and there are many models to choose from in those price ranges, so the government, while encouraging smartphone brands to enter the Indian market and manufacture locally, seem to be reserving the low-end market for those that produce at home. Chinese brands do offer some of those very low-end phones but popular Chinese brands like Xiaomi (1810.HK), Oppo (pvt) and Vivo (pvt) rely on phones in the $100 to $200 range given the average price of a smartphone in India was $211 in 1Q of this year. High end brand names will likely not be affected to any large degree.
India Smartphone Market Share - Source: SCMR LLC, various
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