Xiaomi Technology Co Ltd, the Chinese budget smartphone maker, also known as the ‘Apple of China’ has been ordered by the Indian court to stop selling its smartphones in the Indian market temporarily. This information has been revealed by the leading newspaper Economic Times citing legal documents.
A major blow to ‘Apple to China’
Xiaomi or the Apple of China is the world’s third largest smartphone maker in the world, and it sells its phones in India through the online retailer Flipkart.com. As per the court orders, Xiaomi is required to suspend the import and sales of devices until the 5th of February.
A case has been filed against Xiaomi in India by the Swedish telecom equipment maker Ericsson (ADR) (NASDAQ:ERIC) related to the infringements of patents, and the hearing is scheduled on the 5th of February. Economic Times further added that both Xiaomi and Flipkart have been asked by the court to provide details regarding the sale of the devices in India that are compliant with 3G, EDGE and AMR technologies.
This decision from the Delhi High court has come as a serious blow to the Chinese smartphone maker as it is highly popular in the Indian market, and was able to sell about 800,000 smartphones since its launch in July. The most popular models from Xiaomi are Mi3 and low cost Red Mi 1S. Within 5-6 months of its entry in the Indian smartphone market, it has managed to gain more than 1% share of the growing smartphone market in the country. Central Board of Excise and Customs has been directed by the Delhi High Court to stop the imports of mobiles, handsets, devices and tablets completely.
Tussle over licensing fees
A legal action has to be taken by Ericsson (ADR) (NASDAQ:ERIC) against Xiaomi in India over some licensing fees issue as per the statement given by the former. Reuters was told by Xiaomi’s chief of operations in India that an official notice from the Delhi High Court was yet to be received by them and they were looking for an amicable solution to the issue.
“Our legal team is currently evaluating the situation based on the information we have,” said Xiaomi’s executive. No details about the case were given by him. Flipkart is ready to cooperate with the authorities as informed by it in a statement.
According to Ericsson (ADR) (NASDAQ:ERIC), they had been trying to solve the dispute with Xiaomi (Apple of China) for about three years, but they were not complying and hence Ericsson was forced to take the legal route.