Will India BAN Chinese Smartphones India Government will BAN Chinese Phones that are under Rs. 12,000?

Our next story is about an opportunity worth millions of dollars. There could be a major shake-up in the Indian market. And Indian entrepreneurs have a chance, a small window to make the most of this unique opportunity.

India's smartphone market is worth 139 billion dollars. Most phones sold today are budget smartphones. I'm talking about phones that sell for $150 or less. That's around 12000. Indian rupees.

Around 65% of the phones sold in India are budget smartphones less than Rs12,000. That could mean a market of around $92 billion. And right now, Chinese companies dominate this market at 92 billion. But Indian companies could soon take over because Chinese manufacturers could be on their way out. Reports say India is considering a proposal, a proposal to curb Chinese smartphone makers.

It will not be a complete ban where Chinese companies could be pushed out of an important segment of the entry-level smartphone market. The cheap phones. If it happens, it will be a huge blow to Chinese companies. Like I said, they dominate this market. Let me show you some numbers.

These are from April to June. This year, in the first quarter of the financial year, more than 30 million smartphones were sold in these three months. 30 million. A third of these smartphones were priced at $150 or less. That's about 10 million smartphones.

Up to 80% of these phones were Chinese. So that's about 8 million smartphones sold by Chinese companies in India in the last three months. And these are just estimates. The actual numbers could be higher. This segment of phones below $150 has the biggest customer base in India.

Two-thirds of all smartphones sold fall in this price band. In other words, most customers in India buy entry-level smartphones. And Chinese companies rule this segment. I'll give you another example. Xiaomi is the biggest seller of smartphones in India.

I'd entered in market eight years back. So far, it has sold over 200 million smartphones. Most of them are budget phones. Look at Xiaomi's current lineup of products. 66% of the phones are priced below $150.

So a ban, official or unofficial, will deeply hurt companies like Xiaomi. They might not be able to sell most of their products. Next question why has India fallen out of love with Chinese smartphones? There are multiple reasons. The first concern is, of course, security.

New Delhi has been worried about Chinese tech companies and their operations in India. The fear is that these companies compromised the data of Indians. Remember, Chinese companies have also been kept out of India's 5G rollout the likes of Huawei and ZTE. There is no official ban on them, but they cannot supply gear to Indian telecom companies. Indian telcos are buying from alternative sources.

We've told you about this before. The second concern is regarding their business practices. Indian investigators are probing several Chinese companies. Smartphone makers like Xiaomi, Oppo, and Vivo have been raided. Their finances are being scrutinized.

They face allegations of tax evasion and money laundering. And this has already made it harder for them to operate in India. Then, of course, there's the situation at the border. For over two years now, China has been provoking India. There are now 60,000 Chinese troops in eastern Ladakh.

Beijing refuses to disengage and de-escalate. So India has stepped up pressure elsewhere. It began with the ban on Chinese apps. So far, India has banned more than 300 of them. And now Chinese smartphone makers are facing the heat in India.

This opens the door for Indian manufacturers. It's not like Indians don't know how to make phones. Before China flooded the market, India had several homegrown brands, and companies like Lava, Micromax, and Carbon. They dominated the market, but they could not compete with Chinese smartphones. This curb on entry-level phones could serve as an opportunity for Indian players.

Of course, they'll have to step up their game and win the Indian customer. You see, India is a price-sensitive market. Customers want the best products at the lowest rates. Can Indian companies match the quality of Chinese smartphones with all the latest features at a competitive price? These questions are important because while Chinese companies are forced to leave, they should not be at the expense of the Indian consumer.

As of today, four out of the five top smartphone brands in India are Chinese. The fifth one is Samsung, South Korea. Together, Chinese companies dominate 80% of the market. Is India really ready to dump them? Have to wait and see.