Xiaomi Faces Sales Challenges in Finland Amidst Political Tensions

Xiaomi Faces Sales Challenges in Finland Amidst Political Tensions

Operators in Finland Cease Sales of Xiaomi Devices

Chinese smartphone manufacturer, Xiaomi, renowned globally for its high-quality and competitively priced devices, is experiencing unforeseen obstacles in the Finnish market due to political and populist factors. The brand’s active presence in Russia has led to the suspension of its products by three major Finnish operators, Telia, DNA, and Elisa. This decision is seen as a response to Russia’s invasion of Ukraine, despite the fact that various tech companies have withdrawn from Russia as a form of protest and boycott.

The Stance of Finnish Retailers

While major operators have ceased the sale of Xiaomi’s devices, Finnish retailers Gigantti and Verkkokauppa have opted to continue offering Xiaomi products. Their decision is based on the fact that the European Union (EU) has not banned the sale of Xiaomi devices. Nevertheless, the situation remains complex as Xiaomi has been labeled an “international sponsor of war” by a Ukrainian anti-corruption agency since early 2023 due to its active operations in Russia.

The Impact on Xiaomi’s European Market

Ukraine and Poland are significant markets for Xiaomi. This means that boycotts in these countries could substantially affect the company’s revenues across Europe. As it stands, DNA no longer displays Xiaomi phones in its stores, while Elisa has reduced the number of available models. Telia has discontinued its collaboration with Xiaomi entirely and is only selling existing stock.

Veikon Kone’s Change in Stand

The Finnish retailer Veikon Kone was the first company to implement such measures against Xiaomi in the summer of 2023. However, it later reversed its stance after competitors did not follow suit. Despite this, Veikon Kone has no plans to add new models of Xiaomi devices to its stores.

The Potential Impact on Xiaomi’s Earnings

In conclusion, the repercussions of Xiaomi’s active presence in Russia amid the Ukraine crisis are being felt in Finland. Several mobile operators and retailers have suspended the sales of Xiaomi phones. Boycotts in key European markets like Finland could potentially impact Xiaomi’s overall earnings in Europe, posing a significant challenge to the smartphone manufacturer’s market position in the region.