The new certification norms by the Bureau of Indian Standards (BIS) states that batteries used for devices and laptops should be separately certified thus the smartphone makers may face delays in launching models into the market. Companies could face loss of precious lead time, a critical tool for them to maintain the edge over increasingly fierce competition.
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The new norms which came into effect from June 1, will impact companies that assemble phones locally as batteries are imported as separate component, which would now require certification as opposed to completely built units, the analysts said.
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“Handset makers assembling here could face a larger issue due to certification. For smaller players, it could lead to a loss in lead time and impact them for one or two quarters,” said Jaipal Singh, market analyst for client devices at International Data Corporation. “They may face inventory issues because the product will take some time to get to the market” as per Economic Times report.
It is mandatory to have BIS authorized imprinting on device, box and the carton from July, which will have to be done on the assembly line. The industry is trying to delay its implementation as well. This could escalate cost of compliance for all companies.
Industry sources said getting battery for a particular model, tested and certified, takes more than 30 days and about INR 3 lakh, including taxes, in cost.
“Approximately 850 models of mobile handsets, which are getting launched in India every year, and this number is estimated to grow further with the entry of more players,” the Indian Cellular Association had said in a letter to the department of electronics and information technology (DeitY) last year. But the country has only 12-13 BIS-certified laboratories, which are inadequate to meet the growing demand for testing in a time bound manner.
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The rise in cost of compliance will hurt smaller handset makers more than larger players like Samsung or Micromax, as they may not be able to absorb the cost of certification because they operate on lesser volumes, experts said.
Samsung, Micromax, Karbonn and Panasonic, the bigger-sized handset makers said they were obeying the rules laid down for standardization.