Indian court bans sale of Chinese mobile handsets made by Xiaomi

A court in India has temporarily banned the sale of devices made by the Chinese company Xiaomi.

Xiaomi sells its devices in India, the third largest smartphone market in the world, through the online shop Flipkart.com.

The High court in Delhi has asked Xiaomi and Flipkart to stop importing and selling devices until 5 February next year, when a lawsuit made by Ericsson in India against the Chinese company is expected to be resolved.

The Court also asked Xiaomi and Flipkart to submit the data on the devices so far sold in India that have 3G, EDGE and AMR technologies installed.

Ericcson has issued a statement saying that they were forced into legal action against Xiaomi in India over a licencing dispute.

Xiaomi's head of its Indian operation said they’re yet to receive the court decision and that they’re willing to cooperate with Ericsson.

"Our legal team is currently evaluating the situation based on the information we have," said Manu Jain.

Flipkart also said it was yet to receive an official notice and would work with Xiaomi and the authorities.

The sale of Xiaomi devices in India started in July 2014. India is an attractive market for cheap smartphones, as more people are now able to afford a smartphone, often for the first time, meaning it is one of the largest developing markets.

Just 10 per cent of India's population currently owns a smartphone, brokerage Nomura said in a recent research note, butthat figure is likely to double over the next four years.