Samsung and Xiaomi gear up for intense battle in Indian smartphone market

South Korean multinational conglomerate Samsung and Beijing-headquartered mobile company Xiaomi are gearing for intense battle in the Indian smartphone market.

The battle has intensified even more after Samsung hasstopped supplying its handsets to 200 retailers that became preferred sellers for Xiaomi for its phones.

"This is the first time any brand has stopped supplies to retailers for giving preference to another brand," said the owner of one such cell phone store in Delhi after being cut off by Samsung.

As per a business partner of Samsung, it has only cut off retailers who have removed its first branding signage from outside their stores. "Several of the retailers were leading partners of Samsung. Since Xiaomi has targeted them, Samsung is now renegotiating with them to woo back," he said.

However, retailers are claiming this to be untrue, since the company has blocked even those outlets that did not even have its branding outside the store in the first place.

A message of support sent to a WhatsApp group for members of the trade by Xiaomi India MD Manu Jain says, "I really appreciate that all of you are standing strong, despite the recent action taken by competition."

"Please do not worry about any brand taking away stock or other support. We will support you with more stock if required. In addition, we are also planning a financing scheme which we should be able to announce shortly."

When contacted, a Samsung India spokesperson told ET, "We have built the widest network of partners across the country, with whom we have been working for over two decades, winning the trust and love of consumers, together. It is our endeavour to provide the best retail experience to our customers, and we will continue to work with our partners for this."

(Image source PhoneArena)