India Requests Domestic Location Information System Support from Samsung, Xiaomi, and Apple... Concerns Over Cost Increase

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] The Indian government is reportedly demanding that major smartphone manufacturers such as Samsung Electronics, Xiaomi, and Apple support the location information system developed domestically on their smartphones. This move comes as part of efforts to reduce dependence on foreign systems like the U.S. GPS and accelerate the expansion of the domestic system, raising concerns among companies about increased costs.

According to multiple local sources and meeting minutes cited by major foreign media on the 26th (local time), the Indian government recently held a confidential meeting with smartphone companies, requesting that new smartphone hardware sold from January next year be modified to support NavIC, the location information system developed domestically, in addition to GPS.

India has been striving to expand the use of NavIC, which began operation in 2018 to reduce reliance on foreign location information systems including the U.S. GPS. Currently, India mandates its use in public vehicle location trackers. Countries possessing location information systems that can compete with GPS include China, Japan, the European Union (EU), and Russia.

According to reports, the Indian government met with representatives from Samsung Electronics, Xiaomi, and Apple in August and this month. At these meetings, smartphone companies expressed concerns that installing NavIC would inevitably increase related costs. A representative from Samsung Electronics India stated that supporting NavIC requires not only a new smartphone chipset but also additional components. It was also emphasized that preparations for models announced through 2024 have already been completed.

An industry insider told foreign media that the biggest concern for manufacturers like Samsung Electronics and Xiaomi is the increased cost burden due to the inclusion of dual-band chipsets. The insider also noted that these companies lead the product segment priced under $200 in the price-sensitive Indian smartphone market.

Smartphone companies have initially requested the Indian government to allow time until 2025 to support NavIC. The meeting on the 2nd reportedly included some Chinese companies holding a 28% share of the Indian smartphone market, in addition to Samsung Electronics, Xiaomi, and Apple. An Indian government official told foreign media that a final decision will be made soon.

Meanwhile, Russia has previously pressured smartphones to support its domestic location information system in addition to the U.S. GPS. To reduce dependence on GPS, Russia required smartphones sold locally to support its domestic location information system, GLONASS.