Japanese telecom gaint Softbank recorded a loss of $350 million for last nine months of 2016 in the fair value of the Company’s investments in India. The loss comes on top of a $555 million writedown on the value of Softbank’s India portfolio in the six-month period ending September 2016. “With reference to the current markdown, portfolio…
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.
“We will probably need to be a little more cautious,” said Manu Jain, head of India operations at Xiaomi, the three-year-old Beijing-headquartered startup.
“We will need to be more proactive in putting together a risk management or mitigation plan, to ensure that we can try and foresee any potential risk that might be coming well in advance, not only a court case.” When asked whether lawsuits on patents would become a larger issue in the future, he said the entire industry is facing such problems. Original post at ET Telecom