Xiaomi and OPPO were raided by Indian tax authorities. Why did Chinese mobile phones suffer a major blow in the Indian market?

According to media reports, Chinese mobile phones have suffered a major blow in the Indian market. Xiaomi, OPPO, and Realme, which have a dominant market share in the Indian market, have been subjected to large-scale surprise inspections by the Indian tax department. Such a encounter may lie in India’s plan to support its local brands.

In the early years, local Indian brands such as micromax had a dominant market share in the Indian market. Micromax once surpassed Samsung to rank first in the Indian smartphone market, but only for one quarter, and then Chinese mobile phones quickly seized the market.

The first among Chinese mobile phone companies to enter the Indian market is Xiaomi mobile phone. Xiaomi mobile phone can be described as the most enterprising mobile phone company in China. It launched mobile phones in 2011, and more than two years later, it won the first place in China and the third place in the world in the third quarter of 2014. In the third quarter of 2017, Xiaomi won the first place in the Indian mobile phone market.

With the success of Xiaomi in the Indian market, OPPO and vivo followed in. In 2018, OPPO created the realme brand in the Indian market. Today, four of the top five positions in the Indian mobile phone market are occupied by Xiaomi, vivo, realme and OPPO. They In total, it occupies nearly 50% of the market share, and local Indian mobile phone brands have already declined. Today, local Indian brands mainly make feature phones.

After a few years of silence, Indian local brands are now preparing to regain their strength, and India’s richest man Ambani is even more ambitious to enter the smartphone market.

Ambani, the richest man in India, founded the Indian operator jio a few years ago. At the beginning, he quickly rose to consumers by providing free 4G services and feature phones that are close to the free supply of smartphones. In more than a year, he has gained more than 100 million users. , Less than two years later, jio became India’s largest operator.

However, the era of smart phones has arrived. Ambani will naturally provide consumers with smart phones if he wants to consolidate his position as the largest operator. However, he believes that the prices of smart phones provided by Chinese mobile phone companies are still too high, so jio cooperates with Google A simplified version of Android has been customized to reduce the hardware requirements as much as possible, and jio allows access to Google Play. It is reported that the smart phone that jio plans to launch may cost about 200-300 yuan.

However, the performance of these smartphones launched by jio is too low, and Indian consumers have accepted more powerful Chinese mobile phones. This may be the reason for the large-scale surprise inspection of Chinese mobile phones by the Indian tax department to provide market space for jio’s mobile phones. .

Of course, India’s richest man cannot fully control the Indian mobile phone market. After all, there are many operators in India, including Bati Telecom founded by his brother Anil, who need the support of Chinese mobile phones. This may leave Chinese mobile phone companies in the Indian market. provide opportunity. The advantages of Chinese mobile phone companies in the fierce market competition in India have also proved that they do have their own unique competitive advantages. It is estimated that the position of Chinese mobile phone companies in the Indian market will not change much in the short term.

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