'Shamsung' smartphones strain India-China ties

Discussion in 'Politics & Society' started by Ray, Jan 2, 2014.

  1. Ray

    Ray The Chairman Defence Professionals Moderator

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    'Shamsung' smartphones strain India-China ties

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    Stores in Mumbai specialize in low-priced Chinese products such as fake cell phones.

    MUMBAI, India -- A looming problem for China-India economic relations looks like an iPhone, sounds like an iPhone and acts like an iPhone. But it isn't an iPhone.

    A flood of counterfeits and knockoffs from China, alongside legitimate goods, are drowning Indian industry. Chinese companies are ripping away chunks of India's low-end market.

    Signs of local disgruntlement are growing. India's top Chamber of Commerce body earlier this year sounded a warning about the coming crisis for national industry if nothing is done to stop the China crisis.

    The proliferation of fake products supplied by underground Chinese makers is conspicuous in India's fast-growing smartphone market. But Chinese influence cuts a wide swath across the industrial landscape of the nation. Low-priced imports from China are causing sharp falls in the prices of all kinds of consumer electronics and household electric appliances in the subcontinent.

    Hurting the little guy

    Made-in-China products are also flooding into Indian markets served mainly by small and midsize local companies. The deluge of Chinese imports is beginning to further strain a tense bilateral relationship, which is traditionally prickly because of a territorial dispute.

    Indian consumers are for now embracing cut-price Chinese offerings. That may not be the case if they find themselves out of work because of relentless competition from low-cost manufacturers over the border.

    Take a walk through an Indian market and the scale of the issue becomes clear. Fake Chinese cellphones are clearly visible in the sprawling black markets of Mumbai, the country's biggest commercial center.

    Legions of vendors spend their days selling counterfeit Samsung Electronics and Taiwan's HTC phones. Cheaper look-alikes can also be bought with little fuss. Hordes of eager shoppers bustle through the warren of cramped shops, haggling over prices.

    Sales clerks ask shoppers whether they want the real thing or counterfeits. In the back of stores, clones of smartphones from leading manufacturers such as Apple, Samsung and HTC fill the shelves. Shoppers walk away with fakes that cost less than half of the price of the the real things. Some phones go for as little as 3,000 rupees ($48.10).

    Throngs of underground companies in China churn out shanzhai cellphones at very low costs. The Chinese word shanzhai originally means mountain stronghold of bandits. The term is often used today to mean "outside of government supervision" or "evading tax or copyright laws" and, by extension, "knockoff" or "imitation."

    Shanzhai cellphones, called "China mobile" in India, have captured massive market share in the country as many consumers prioritize getting a bargain over service guarantees. Chinese manufacturers have a competitive advantage because they evade tax, regulatory fees and safety checks at home.

    A 30-something living in Mumbai said he knew fake mobile phones tended to break easily. But that did not matter to him. A genuine smartphone was out of his price range, he said.

    Trade imbalance

    India's once vibrant economy is losing steam. Growth rates are significantly slowing. The country's market for smartphones, however, is expanding at a breakneck pace.

    Low-priced products launched by Indian makers such as Micromax have made smartphones affordable for more of the population. Many of cut-cost offerings from Indian markers are made in China.

    The Indian smartphone market is awash with products manufactured in China, because the same factories produce the Samsungs and the Shamsungs.

    Chinese products are also making deep inroads into the Indian market for electrical appliances. Indian companies typically import nonbrand products from China and sell them in India at extremely low prices, a senior executive at a Japanese appliance maker said.

    India's smartphone market is a microcosm of what is going on at a macro level. The country runs a chronic and growing trade deficit with China.

    In the fiscal year through March 2013, India exported some $13.5 billion worth of goods to China and imported $52.2 billion's worth. The government in New Delhi wants to narrow the trade gap.

    Consumers in India benefit from the bargains, but the trade imbalance is a source of economic tension between the countries.

    Numerous industries are beginning to get disgruntled. In Gujarat's ceramic industry, which mainly makes tiles and sanitary ware, local small and midsize players face the abyss. Low-priced ceramic imports from China are growing at dizzy annual rates of around 40%, posing a serious threat to local makers, which are also facing rising costs of fuel and materials. The bottom lines for Indian ceramic makers are sinking rapidly.

    Should that matter to consumers? Probably. Sometimes you get more than you bargained for when you spend on Made in China.

    'Shamsung' smartphones strain India-China ties- Nikkei Asian Review

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    The Chinese are great counterfeiters.

    It must be a concerted effort that aims at destroying foreign economies and industry.

    This scam has potential as a weapon of deceitful swamping of foreign economies and destroying indigenous industry and genuine foreign imports.
     
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  3. TrueSpirit1

    TrueSpirit1 The Nobody Banned

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    Sir, no matter how hard Chinis try, Indian handset market is dominated by Samsung, Micromax, Nokia, Sony, Apple & the likes of Lava, Xolo, Karbonn etc.

    The Micromax & latter ones (bold) source the design & semi-knocked down components from different sources in East Asia (including PRC) & get the handsets assembled by themselves. With time, the Indian handset manufacturers (assemblers) are taking over more & more of design work & now they have intentions of developing the ecosystem for sourcing components (SKD kit) in India, itself.

    Chinis fake handsets have less than 1% market & decreasing exponentially given the excellent value with reasonable reliability (acceptable quality) that Indian handset manufacturers offer. Plus, desi manufacturers are very aggressive in leveraging media for marketing, due to which Micromax Canvas series has become a sort-of-brand in India. Other, desi companies are following MMX's footsteps with visible success.

    So, we are already leveraging what the Chinis can do, doing our own value-add & now climbing up the value-chain. It is only a matter of time that fake-Chini maal market-share would be .0001%. In fact, Indian companies are exploring the export potential of their popular models in the developing world.
     
    Last edited: Jan 2, 2014
  4. ice berg

    ice berg Senior Member Senior Member

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    I guess you dont know that most of the handsets are made in China then.

    Made in China, but 100% Indian | Business Line

    This apart, all other mobile phone parts that include chip sets, processors are imported. At the most Indian vendors can explore possibilities of having assembling units here in the country.

    “None of the important elements of a mobile phone are manufactured in India. We do not have those facilities,” he said adding: “In short Indian handsets are actually not at all Indian. They are all made in China.”
     
  5. TrueSpirit1

    TrueSpirit1 The Nobody Banned

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    Looks like you are clueless about that fact that most Indian manufacturers (namely, the ones I have mentioned above) already have assembling units in India. As for the rest, you have simply repeated my points. Only difference is you are not aware of the details that matter & where the wind is blowing.

    Read my post again. You would gain insights & details that matter. Things are changing. These assemblers are climbing up the value-chain while Chinis were busy perfecting their trademark pilferage.

    But, assembled by Indians, which is different from the fake Chini maal that PRC is ineptly trying to dump.

    Now, you need to read the OP to understand the context being discussed here.
     
  6. ice berg

    ice berg Senior Member Senior Member

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    The only clueless kid here are you. Unlike a troll like you, I provided the reference. So you can keep your trolling to your self. The handsets are made in China. Suck it.
     
  7. TrueSpirit1

    TrueSpirit1 The Nobody Banned

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    Typical pussy-footed Chini. Cannot digest truth & scared when confronted with facts.

    Uncle, all handsets are assembled in India, only components sourced from China. But, how would a troll from a nation of counterfeiters know ?

    Further, looks like baidu translator is doing you good enough. Keep sucking on it, maybe it helps.
     
  8. bose

    bose Senior Member Senior Member

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    I am on a project implementation visit to Noida [just outside New Delhi] in the area sector 62, adjacent to our building [Seimens] that is a very big Samsung R&D centre and could see a large Korean contingent working there along with their Indian counterpart...

    Let the all the high end R&D work be done in India and assembly / manufacture done in China... :) or thay can move the manufacture to Vietnam with better productivity than China...
     
  9. TrueSpirit1

    TrueSpirit1 The Nobody Banned

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    @ice berg

    Here is the situation in Indian handset market:

    1) Samsung (Korea)
    2) Micromax (India) & Nokia (Finland)
    4) Sony (Japan)
    5) Apple (US)

    Where is your Chinese brand here ? Your suspect-quality Huawei & Lenovo don't even figure in top 15 handsets.

    Just suck up to the fact that you suck at system integration & have miserably failed to sell handsets in India, unlike Koreans who dominate the Indian market, Americans, Fins, Japs & obviously Indians, themselves.
     
    Last edited by a moderator: May 10, 2015
  10. bose

    bose Senior Member Senior Member

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    When I was in USA last year one of my friends showed me the copy of Motorolla Smartphone which he got it from his China visit... one cannot make out a difference from its original... China is world Champion on making illegal copies... maybe this is because they have supposedly very high IQ....
     
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  11. Neeraj Mathur

    Neeraj Mathur Regular Member

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    i have samsung galaxy note and its copy which costed me rs4000 only
    apps and everything is almost same.
     
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  12. bose

    bose Senior Member Senior Member

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    Brother, one thing I have implemented in my family, never to buy any Chinese products knowingly... I simply do not trust Chinese products... they are useless hope Indians understands it quicker the better…
     
  13. Neeraj Mathur

    Neeraj Mathur Regular Member

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    i agree with you
     
  14. Neeraj Mathur

    Neeraj Mathur Regular Member

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    but i must say i have oppo find 5 too
    thats one china phone that i am fan of.
     
  15. rock127

    rock127 Maulana Rockullah Senior Member

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    Guys.. kick CHEAP CHINA CRAP outta India as much as possible.
     
  16. EXPERT

    EXPERT Regular Member

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    what chinese are doing with every thing ,indians are doing with their food .
     
  17. Neeraj Mathur

    Neeraj Mathur Regular Member

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    what are indians doing to their food
     
  18. bose

    bose Senior Member Senior Member

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    Original Chinese food can only be found in India :)
     
  19. rock127

    rock127 Maulana Rockullah Senior Member

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    Chinese copied our martial arts as well.

    Biggest THIEF of the world.
     
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  20. bose

    bose Senior Member Senior Member

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    I will not be surprised if they claim Moon as theirs just because thay have droped some thing on its surface...
     
  21. EXPERT

    EXPERT Regular Member

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    go and search your nearest chinese "THELA" , you came to know that the food is not chinese, its indian .
     

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