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Are Chinese Corps are Using India as Dumping Ground for 4G Smart Phones

CHINESE BRANDSIndian companies claim that China is using India as a dumping ground for the high speed 4th generation smart phones and has captured the Indian market, making it difficult for their very own Indian brands to penetrate the market, which has created tough competition and given rise to rivalry between both the countries with regards to the 4G smart phones. These allegations have been completely denied by the Chinese companies. The scenario has changed which has also led to the current situation which is prevailing and the reason being that those Chinese companies who used to supply the Indian suppliers with the smart phones have now themselves entered the Indian market as direct suppliers and therefore the Indian companies have to look for new suppliers till the time they could find themselves with new suppliers the Chinese companies took advantage of the situation which gave them an upper hand and flooded the Indian market with the high speed devices.

According to the Indian companies the kind of smart phones China is supplying the Indian market may not even be 4G enabled properly and may not even have Band 3 or 1800MHZ band they are just dumping their inventory in the market according to Vikas Jain, who is the co-founder of Micromax, which is positioned at no.2 phone seller, this brand has 4G LTE services whereas the other has 2300MHZ.

When China would be dumping the Indian market with excessive supply of 4G smart phones then this would also affect the prices, says Pradeep Jain the MD of Karboon Mobiles. Chinese companies have over supplied the market with the 4G smart phones which has had a negative effect on the local brands as they would have to compete with the Chinese brands price wise too.

If slowly and gradually all the manufacturing units shift to India then what would happen to the Indian manufacturers? According to Arvind Vohra who is the country CEO and MD of the Chinese mobile smart phone manufacturer Gionee said that theirs is a quality phone and cannot be made available to the Indian market at a low price and their prices are higher than the other Indian players. He also claimed that their devices are world class and they cannot flood the Indian market with sub standard products.

Then the question also rises that how come the Chinese manufacturers are ahead of the local sellers?  We are all aware that China manufactures products according to the country it wants to target and supply and their brands like Lenovo, Xiaomi, Huwaei and Gionee have 12% of the share in the smart phone market in Q3 in India and as far as the 4G smart phones is concerned the Chinese companies have captured 45% of the market share in India in comparison to 10% of the local brands. The online platforms like Flipkart, Snapdeal and Amazon have also helped the Chinese vendors to increase their sales, according to Kiran Kumar who is a senior analyst at IDC, India.


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