India's User Privacy Mandate Could Spell Losses For Smartphone Players Like Samsung, Xiaomi, Apple

  • India's latest smartphone mandate could amount to losses in business from pre-installed apps for players, including Samsung Electronics Co, Ltd SSNLFXiaomi Corp XIACF XIACYVivo, and Apple Inc AAPL.
  • India plans to force smartphone makers to allow the removal of pre-installed apps and mandate screening of major operating system updates under proposed new security rules, Reuters reports citing familiar sources.
  • Most smartphones used in India have pre-installed Apps/Bloatware, which poses serious privacy/information security issue(s), stated a February 8 confidential government meeting record. Xiaomi, Samsung, Apple, and Vivo representatives attended the close door meeting.
  • The document stated that the government has decided to give smartphone makers a year to comply once the rule comes into effect.
  • India's IT ministry is weighing these new rules to ensure the safety of user data.
  • Pre-installed apps could serve as weak security leading to exploitation by foreign powers like China, an Indian official state.
  • Smartphone players often sell their devices with proprietary apps but sometimes pre-install others with monetization agreements. Therefore, the government must distinguish between these and non-essential when enforcing screening rules.
  • The testing could prolong approval timelines for smartphones.
  • South Korea's Samsung has a 20%, and Apple has a 3% share in India's fast-growing smartphone market.
  • India ramped up scrutiny of Chinese businesses since a 2020 border clash, banning over 300 Chinese apps, including TikTok. It also intensified scrutiny of investments by Chinese firms.
  • Benzinga now provides actionable financial news and trading ideas for the Indian financial markets on
  • Image by Alan from Pixabay

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