Xiaomi to comply with Delhi high court order barring sales smartphones
12 Dec 2014
Chinese smartphone maker Xiaomi says it would comply in full with the Delhi high Court order asking it suspend sales of smatphones in the country.
The third-largest smartphone maker in the world, had earlier halted the upcoming flash sale of its Red Mi 1S and Red Mi Note smartphones, The Economic Times reported.
According to Manu Jain, head of the company's India operations, the company had not been served the court notice yet, but it was aware of the issue. The court has barred the company from selling, importing or advertising mobile phones in India till 5 February, the next date of hearing.
He said the company wanted to be 100-per cent compliant with Indian rules and regulations.
The order comes on telecom equipment maker Ericsson's plea that Xiaomi was infringing on its patents.
Jain said Xiaomi would explore all options including legal options on what it could do.
He added the company would communicate and explain very openly to its users about what the order said, once it was received.
Hugo Bara, head of international operations at Xiaomi, said in a Facebook post last night about the company's decision to suspend sales, adding however, that the company 'firmly' intended to continue operations in India.
Meanwhile Reuters reported that the rapid growth of China's top smartphone maker had started losing its shine. The company had been restrained from selling handsets temporarily in India.
Xiaomi could probably pay up and resume sales, patent fees would however, will likely squeeze margins, and in turn the company's valuation.
The unexpected ban comes only five months after its entry into the third-largest smartphone market in the world. Swedish group Ericsson is demanding compensation for the use of its technology in the company's phones in India.
According to commentators, the impact on Xiaomi would be small, given that the bulk of the company's $5 billion in sales the first half of this year came from its home market of China.
The stakes though are high with smartphone shipments to India to reach over 80 million units by the end of the year, as per projections of research group IDC.
More importantly the growth rate is expected be around 40 per cent for the next five years.
