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 SSNLF, Xiaomi Corp XIACF XIACY, Vivo, 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.
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