Ericsson lawsuit could derail Xiaomi's global expansion
High-flying start-up Xiaomi could see its ambitious international expansion halted in its tracks after telecommunications giant Ericsson took legal action preventing the mainland company from selling its smartphones in India.
High-flying start-up Xiaomi could see its ambitious international expansion halted in its tracks after telecommunications giant Ericsson took legal action preventing the mainland company from selling its smartphones in India due to alleged patent infringement.
Analysts said the development provided an opening for the likes of Samsung Electronics and Lenovo Group to slow the rapid market share gains of Beijing-based Xiaomi, the world's third-largest smartphone supplier in the past two quarters.
"It's not looking good for Xiaomi, which is fully aware of the importance of intellectual property," Bernstein Research senior analyst Mark Li said.
Jason Low, a research analyst at Canalys, said Xiaomi currently did not own any significant patent portfolio to support its international operations, compared with Apple and other major smartphone brands.
Ericsson, the world's largest supplier of telecommunications equipment, yesterday confirmed earlier reports that it won an injunction against Xiaomi in India, the fastest-growing smartphone market in Asia-Pacific.
The High Court of Delhi on Monday ordered Xiaomi to cease importing, manufacturing, advertising and selling its devices that allegedly infringe on Ericsson's so-called standard-essential patents.
