Telecom Diary: India needs Chinese handset brands across price segments to drive 5G

India is reportedly working on a strategy to nudge Chinese smartphone players to exit the sub-Rs12,000 market segment to make space for domestic companies like Lava, Micromax and Karbonn. While it is important that domestic players also thrive in the vast Indian market, making Chinese players leave the segment may hurt consumer interest since Indian players may not be fully equipped to handle the ever-evolving needs of consumers in the segment.

Local companies such as Lava and Micromax have been pushed to the fringes in the last seven years due to less control of supply chain and aggressive pricing by Chinese players. At their peak in 2015, homebred brands such as Lava, Micromax, Intex and Karbonn together accounted for around 35% of the smartphone market. Micromax and Intex were giving then market leader Samsung a run for its money.