#boycottChinaMobiles: Is India ready for it?

Recently India and China are standing face-to-face with each other, with China creating tension across the LAC (Line of Actual Control) near Ladakh region. Indian Army has confirmed that 20 Indian soldiers attained martyrdom in the standoff between India and China. ANI reported that Indian intercepts reveal that Chinese side suffered 43 casualties including dead and seriously injured in a face-off in the Galwan valley.
Amongst these high tension times, Indian citizens are now filled with rage and anger towards China. People are now demanding a ban on Chinese products import and boycotting chinese products and services available in India. Several videos and images have emerged with people burning and destroying Chinese branded products on the streets. Indian government already has decided to ban 59 Chinese Apps which includes some popular apps like TikTok, Shareit, UC Browser etc.

One of the most popular trend on social media nowadays is #boycottchinamobiles. Since Chinese smartphone manufacturers such as Xiaomi, Oppo, Vivo have made their strong holding in Indian market with Xiaomi currently ruling on top, are we really ready to boycott and stop using these chinese manufacturers of mobiles? Well we have an analysis here for you.

We can broadly categorize below smartphone companies currently present in India into Chinese and non-Chinese companies:


Chinese

Non-Chinese

Oneplus

Samsung (South Korea)

MI

Apple (USA)

Oppo

Nokia (Finland)

Vivo

LG (South Korea)

Huawei

Asus (Taiwan)

Realme

HTC (South Korea)

Motorola (owned by Lenovo)

Indian people are mostly budget oriented who tend to pick any item which offers the best price value to them. Now suppose if you want to buy any budget non-Chinese smartphone in India, the only reliable option we can notice here is Samsung. Samsung is the world leader in electronics and is pretty much self-dependent. Apple has always maintained their premium price segment. Nokia, ASUS, LG are not launching new smartphones frequently and even if they do, their specifications will already be lagging behind in the same price segment. HTC is very much dead in India. Well this means that manufacturers other than Samsung have a great opportunity to jump and grab the budget segment but we can’t be sure what’s their next move.

Again if you want to buy a flagship Snapdragon 865 non-Chinese smartphone, there is not much option to consider. Samsung also launches their Exynos version in India instead of Snapdragon in their premium flagships. 

On the other hand, Chinese phone makers offer great specs at lower pricing. Their aggressive approach in Indian market mostly towards budget oriented users has slowly made them ‘People’s choice’.  Not only in smartphones, they have made a significant impact in phone accessories segments such as headphones/earphones, power banks, Bluetooth speakers etc.

According to an article published at International Data Corporation (IDC) below table represent Top 5 smartphones companies. The yearly growth can be a negative due to the current covid-19 situation, but notice Xiaomi and Vivo are already making positive growth here :


As of now there is no truly Made in India smartphone. Micromax was basically Chinese phones who were either a direct copy of Chinese phones rebranded locally in India or all components imported and then assembled in India.

China is already having the world’s largest factories of major industries and has made other developed countries heavily dependent upon them. Even Apple’s newer IPhones are still assembled in China.  Taiwan based electronics company Foxconn, which is the world’s largest provider of electronics manufacturing services, has their largest factory in Longhua Town, China employing close to 400000 employees. Foxconn’s list of major customers includes Apple, Google, Huawei, Intel, Microsoft, HMD Global (Nokia), Sony etc.

The phones which come with a sticker of ‘Made in India’ on their retail box are not truly made in India. Instead major parts are being imported from around the world and assembled here in Indian factories. Very few local components are used in assembling these phones. By doing so companies can establish their assembling factories in India providing employment to local people. This also makes their shipping faster in the local market.

Xiaomi (owner of Pocophone, MI, Redmi, Black Shark) is also the fourth company after Apple, Samsung and Huawei to have self-developed mobile phone chip capabilities. Why are there no Indian companies?

Indian companies should focus toward the truly ‘Made in India’ strategy, where the government should promote local or non-Chinese companies who make components such as Printed Circuit Boards (PCBs), chipsets, mobile display, camera modules, batteries and speakers. Indian companies initially can invest more in Research and Development to get the best out of locally grown technology. Needless to say all this will create huge opportunity for employment in India. This is not an overnight task but a slow approach towards development.

For all this to happen,

  • There has to be a redefined government policy for new companies to develop.
  • More R&D and Innovations by companies.
  • Consumers should search for alternatives. Destroying and burning already owned Chinese goods are not going to make any impact. You will lose money and a product which you already owned.

The truth is even entire Chinese smartphones are banned for sale or imports immediately in India, people with tight budgets will only have the option to buy a very limited set (and probably outdated or lower specs) of smartphones.

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