Xiaomi: Patent issue to have no impact on pricing

Xiaomi says it needs to be prepared to face obstacles such as the patent infringement allegation it is fighting in India as it grows at a break-neck pace, already becoming the largest smartphone maker at home in China and the No. 3 globally. However, such issues, the company says, won't stop it from launching products at competitive prices.

The Delhi High Court had briefly stopped Xiaomi from selling devices in India on a lawsuit by Ericsson, which sought royalty for some patents that were essential to make the handsets that Xiaomi sold in India. The court later allowed Xiaomi to sell products that use Qualcomm chipsets and asked the company to deposit Rs 100 with the court for every handset sold. Further hearing in the case is scheduled for February 5. 

Analysts tracking handset companies say the additional cost related to royalty payment may be passed on to consumers, but Jain said that Xiaomi wouldn't raise prices. The company, called Apple of China, uses both Mediatek and Qualcomm chipsets in its devices. The court's interim order will not impact its partnership with the Taiwan-based Mediatek in markets outside India, Xiaomi said.

source : The Times Of India