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Xiaomi devices downed by Indian air force over security concerns

Xiaomi is building a new data centre in India to store the data of its growing customer base in the country in order to deflect privacy concerns that have the ability to derail its progress in the global smartphone market.

Read more: Google’s budget Android One range targets Indian market

The Chinese-based firm has already started to move Indian user data from its Beijing data centre to Amazon Web Services data centres in Singapore and the US, which will be completed by the end of the year.

Reuters also reported that the company was working earlier today to contact Indian authorities for more information on local media reports that mentioned the country’s air force had told staff and families to stop using Xiaomi phones due to security concerns.

To assuage those concerns it is preparing to fund a data centre in the country and will eventually transfer the data stored at Amazon Web Services to the location to help it achieve further growth in the emerging market.

India isn’t the only place where worries over the firm continue to linger with an accusation from international security researchers and a government agency in Taiwan that it sends restricted user data back to its servers in Beijing.

Taiwan, a breakaway province, is expected to make a ruling on the smartphone manufacturer by the end of the year and some are already speculating that it could result in a ban on sales in the province.

Xiaomi is making great strides in the Asian market and a report from Canalys released in August showed that it accounts for 14 per cent of shipments in China, which is more than Samsung, Lenovo, Yulong and Huawei. The company shipped some 15 million units in Q2 2014 and it plans to sell approximately 100,000 phones a week in India during the current month.

Read more: Google’s Android One rollout in India sets off alarm bells at Samsung

Conservative estimates on shipment revenues in India expect them to hit $20 billion [£12 billion] by 2017, which is a rise of just shy of 50 per cent compared to the $14 billion [£8.5 billion] this year, and goes to show why Xiaomi must reassure consumers to prevent any damage being done.