CHINESE BRANDS DOMINATING INDIAN SMARTPHONE MARKET !

So in India, after our conflict at border with China we realized how much monopoly China is having in all sectors in our Indian market, especially in our smartphone market. The major smartphone manufacturing brands are owned by BBK Electronics and Xiaomi. Only non Chinese brands like Samsung and Asus are working in India at a large scale. In Q3 of 2021 the market share of Chinese Smartphones in India was whooping 45% that means out of every 100 people 45 people are using a Chinese smartphone.

Source : www.counterpointresearch.com

This monopoly of Chinese Smartphone brands in India is not new, it has been started somewhere in the year 2015-16. So we will discuss about this Chinese monopoly and how can we reduce the dominance of China from Indian smartphone market.

DIFFERENT BRANDS IN INDIA

So there are a lot of smartphone brands operating and running their business on a very large scale in India. Let's categorize them:

So these Chinese brands are having a good monopoly in the market. Somewhere half of the market is under their monopoly. Other than that brands like Samsung, ASUS, Apple and Google are also doing well in India but only Samsung have a big share in the market. And then comes the Indian brands most of these brands were not making a good value for money phone and some of them were also importing phones from Chinese market and then were rebranding them and selling in India, this is why these so called Indian brands were not able to capture a good market in India. 

SHARE OF CHINA

The revenue of brands which have manufacturing plants in India divides into three parts; first goes to the brand, second goes to India as they have their plant in the country and third goes to China. The smartphone brands which have their plants in India also somewhere contributes to the revenue of China. First of all most of the plants in India are Assembly plants, they do not make the product as which most of the parts of the device comes from China even though it is a non-Chinese brand. Processors like MediaTek and Snapdragon are also made in China.

A 100% MADE IN INDIA INITIATIVE

You must be thinking why can't we make smartphones in India, there are some reasons because of which we can't make smartphones in India. The raw materials required for making smartphones are not widely available in India. Like for eg; processors, the plants and machinery which is required for making processor is very expensive. Other than that parts like storage, semiconductors need to be stored in certain climate or temperature which is a big problem in India. 

Source : www.mybrandbook.co.in

Even if we assume that we can setup a mobile processor making plant in India then it will need a huge investment of Billions of Dollars. Any firm in India will never invest such a huge amount. We will need investors from different countries to invest in this project. Considering the infrastructure, transportation, availability of raw materials, Governmental support and many other factors required for the setup of plant, the investors are not easily ready to invest in India.

OUR RESPONSIBILITY IN REDUCING CHINESE MONOPOLY

As citizens we too have some responsibility to reduce these monopoly. In our home only we have so many Chinese products. Also we use so many Chinese products in our day-to-day life. We have to start finding an Indian alternative for these product. In terms of smartphones only instead of going for Chinese brands we can go for Indian brand like Micromax or else we can even go for Samsung, ASUS, etc.