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December 13, 2014

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Ban forces Xiaomi to seek other ways

XIAOMI Corp will seek other channels to continue selling its smartphones in India after an Indian court barred the company from selling handsets in its biggest overseas market, the Beijing-based firm said yesterday.

Xiaomi suspended all sales in India “until further notice” to comply with a ruling from the New Delhi High Court that Xiaomi allegedly infringed wireless technologies patented by Ericsson.

“Our sincere apologies to all Indian Mi fans! We have greatly enjoyed our journey with you in India over the last five months and we firmly intend to continue it,” Hugo Barra, Xiaomi’s vice president for global operations, said in a note posted on Xiaomi’s Indian website.

Xiaomi said it is open to working with Ericsson to resolve the matter.

Judge G.P. Mittal of the New Delhi High Court ruled earlier this week that Xiaomi’s Indian distributor, online retailer Flipkart, is prohibited from selling the Chinese company’s phones while the court hears Ericsson’s complaint, Bloomberg News reported.

“The lack of patent challenges Xiaomi’s global expansion,” said Xu Lei, analyst of Beijing-based research firm Analysys International. “It will greatly increase cost of Xiaomi (in overseas markets).”

But Xu said Xiaomi won’t neglect India due to surging demand for low-cost phones in the world’s second biggest populous country.

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