Xiaomi switches off India phone sales

Chinese smartphone maker Xiaomi, which became a rage in India in recent times with sale of its feature-rich, yet affordable devices, has temporarily suspended sales in the country after the Delhi High Court, in an interim order has directed the company as well as Flipkart to stop selling its products in India, following a patent dispute.

The temporary ban which will extend until February 5, is the result of a patent infringement case that Swedish telecom equipment maker Ericsson filed against Xiaomi in India. Ericsson confirmed that it is taking legal action against Xiaomi in India for using its technology in smartphone devices without paying licensing fee.

The unexpected ban comes just five months after Xiaomi’s entry into the world’s third largest smartphone market where it retails smartphones, Redmi 1S and Redmi Note on e-commerce site Flipkart. Ericsson is demanding that the smartphone maker compensate it for using protected technology in its phones in India.
Following the ban, Xiaomi Vice-President Hugo Barra wrote on the company’s Facebook page on Friday, “We have been forced to suspend sales until further notice due to an order passed by the Delhi High Court. As a law abiding company, we are investigating the matter carefully and assessing our legal options.”   

The financial impact on Xiaomi looks small — the bulk of the company’s $5 billion in sales the first half of this year came from its home market China. Yet, the stakes are high; smartphone shipments to India will reach over 80 million units by the end of the year, according to research group IDC, and are expected to grow at an astonishing 40 per cent for the next five years.

A retreat from India, even if temporary, will deal a setback to Xiaomi's efforts to replicate its Chinese success in India’s already crowded market, where Samsung and Nokia are waging a fierce battle with local brands like Micromax and Karbonn.
Waiting for comeback

Looking at hopeful prospects and a fresh beginning, Barra wrote, “We have been committed to continue our sales of Redmi Note and Redmi 1S devices in India. In the last two days alone, we received over 150,000 registrations for Redmi Note on Flipkart and the momentum has been terrific.”

“Our sincere apologies to all Indian Mi fans. Please rest assured that we’re doing all we can to revert the situation. We have greatly enjoyed our journey with you in India over the last five months and we firmly intend to continue it,” he wrote to cusomers.
Meanwhile, a Flipkart spokesperson said, “Flipkart adheres to the laws of the land, and we will cooperate with the authorities wherever required.”
DHNS & Agencies