FINLAND: In a significant move, three of Finland’s major mobile carriers, Telia, DNA, and Elisa, have announced the suspension of sales for Chinese tech giant Xiaomi’s products as of Thursday. This decision is a direct response to Xiaomi’s continued operations in Russia following the invasion of Ukraine.
Earlier this year, the National Agency of Corruption Prevention in Ukraine designated Xiaomi as an “international sponsor of war.” Telia cited this label as the primary motive for discontinuing cooperation with the Chinese firm. The company has resolved to sell only the existing stock and will not acquire new devices.
DNA has confirmed the complete suspension of all Xiaomi product sales. CEO Sami Aavikko expressed dissatisfaction with Xiaomi’s handling of the situation in Russia, making it clear that plans are in place not to replenish stocks once the current devices are sold out.
In contrast, Elisa will take a more measured approach, opting to limit its range of Xiaomi devices rather than entirely suspending sales.
While Veikon Kone became the first Finnish retailer to halt Xiaomi sales during the summer, it later reversed its decision due to a lack of follow-up from competitors. Currently, the retailer has no plans to introduce new models to its stores.
On the other hand, retailers like Gigantti and Verkkokauppa have affirmed their commitment to continue selling Xiaomi products until further notice, citing the absence of an EU ban on Xiaomi.
This decision by Finnish carriers follows a series of setbacks for Xiaomi’s European business in 2023. Poland and Lithuania banned the sale of its products in March and April, and the European Union imposed sanctions on Xiaomi’s CEO, Lei Jun.
The sanctions on Xiaomi are part of a broader EU initiative to exert pressure on Russia to withdraw from Ukraine. This effort has also led to a ban on the export of crucial semiconductor components necessary for smartphone production to Russia.
Xiaomi’s continued presence in Russia has sparked intense debate. While the company contends that it has a responsibility toward its Russian customers and employees, critics argue that it indirectly supports the Russian government financially.
The ramifications of this Finnish decision could reverberate throughout Xiaomi’s revenue, market share, and reputation in Europe. Moreover, it may lead to increased calls from other European governments to halt the sale of Xiaomi smartphones.
For the European smartphone market, this development could translate into reduced competition and heightened demand for alternative brands, potentially benefiting manufacturers like Samsung, Apple, and Huawei. It may also trigger greater scrutiny of other Chinese companies operating in Europe.
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