Xiaomi Ordered to Stop Sales In India
David Curry | | Dec 11, 2014 08:28 AM EST |
(Photo : Reuters) Xiaomi has announced the Mi 4i in India, its first exclusive in the country.
Chinese electronics company Xiaomi has been ordered to stop sales in India following a patent infringement case set up by Ericsson.
The court case was filed by Ericsson India, after Xiaomi (Mi India) allegedly infringed on eight patents. Most of the technology patents surround the device's networks: 3G and EDGE.
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Xiaomi and Flipkart, which is the exclusive retailer for Xiaomi, will need to provide sales numbers to the Indian court. It is likely they will be fined a small amount for each device sale for the patent infringement.
In an announcement. Xiaomi said it is happy to comply with the Indian court and Ericsson. The matter should be settled in the coming weeks, if Xiaomi can reach an appropriate deal.
Xiaomi has become the fastest growing mobile company worldwide, despite only selling in China, India and a few other regions in Southeast Asia. The company's aggressive pricing and high-end specs have captured the eyes of millions in Mainland China, and Xiaomi reportedly took 1.5 percent of the Indian market in under a year.
Xiaomi may have been able to increase sales to double the percentage by the end of 2014, but the sales blockade will undoubtedly kill off that increase in sales.
Micromax and other Indian mobile makers are worried about Xiaomi, the aggressive marketing campaigns and high-end specs cannot be matched-it seems-by Indian suppliers.
The sales blockade may force Xiaomi to offer a flash sale for the Redmi Note and other popular devices. In a previous flash sale, Xiaomi managed to sell 75,000 units in 8 seconds in India alone.
Hugo Barra, Xiaomi's vice president of International, has confirmed Xiaomi will not enter any new markets until 2015.
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