Xiaomi’s Ban Might Boost Motorola’s Growth In India

Moto X 2014
One of the most shocking revelation to come alight in last few days is the ban (now partial) imposed on the Chinese handset manufacturer, Xiaomi in India. What came as a shocking revelation is that some of the 3G and connectivity technologies used by the Chinese handset manufacturer are patented by Ericsson. More shocking is the revelation by Ericsson that Xiaomi has been ignoring the correspondence from Ericsson in this regard since three years.
The impending tussle between two brands has forced the Delhi High Court to impose a ban on the Chinese manufacturer from importing, advertising and selling their handsets in India. However, recently, the court has partially lifted the ban and allowed the handset manufacturer to sell Qualcomm device in the country till January 8, 2015. This means Xiaomi can continue to sell Redmi 1S and Redmi Note 4G variant. Already, the Mi Store on the e-commerce website, Flipkart has been taken down.
Notably, with its unique flash sales strategy and limited inventory has managed to create a good brand hype in the country. Moreover, with devices that offered great specifications at throw away prices catapulted the brand to one of the top brands in a very short time. From MI3 to recently launched, Redmi Note, each device has been a marvel and sold like one. The handset manufacturer stole the thunder from Motorola, who created these niches with its Moto G and Moto E.

Motorola stands to gain the most from the ban on Chinese brand
Now that the Chinese handset manufacturer faces excommunication from the Indian handset industry, the brand that stands to gain the most is without any doubt, Motorola. Xiaomi was one of the front line runners to join the elite Million Smartphone Club in India.
Smartphone Market Share
However, with the impending ban, the brand might not make it any more. Moreover, guess who is already topping the chart in this club. Motorola, freshly acquired by Lenovo, has shipped more than 1 Million smartphones for the first time in India in the third quarter of 2014.
Notably, Xiaomi was the third highest smartphone shipper in the world with 17.3 million units shipped across the globe. Samsung and Apple were the top two brands with 78.1 Million and 39.3 Million unitsshipped worldwide, respectively. However, India being the second largest mobile phone and third largest smartphone market in the world, is extremely crucial for the likes of Xiaomi.
Smartphone Market Share
(Data source – IDC.com)
However, with no Mi devices to give competition, it is a known fact that the smartphones that started it all will be back in demand. Moto E, Moto G and Moto X are some really good smartphones that were shadowed by Xiaomi’s aggressive stance in the country. Now that Xiaomi is out of the scene and Motorola has launched the refreshed variants of its aces, there is no looking back for the US based handset manufacturer.
As much as we abhor the ban imposed on Xiaomi, which means losing out on some great smartphones including the yet to be launched MI4 and the rumored sub-Rs. 4,000 4G handset with quad core. However, Motorola was the brand to have come up with the idea of powerful budget smartphones and could deserve a much needed breather in the Indian handset market.

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