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Like Xiaomi, Micromax is all about viral branding and has varied its products to include things like TVs. It remains to be seen how Xiaomi, which does have a small but very dedicated following in India, will deal with Micromax and other companies that operate with similar claims to fame. Xiaomi seems to be playing it cool. The company's head of operations in India, Manu Jain, told CNET that, "We don't focus on competition. The main objective of local manufacturing in India is to bring us closer to Indian consumers."However, this is not one battle that Xiaomi, or for that matter, any phone manufacturer can back down from. It's like the Strategy Analytics report says, "No serious global hardware or software player can afford to ignore the huge Indian smartphone market today."Xiaomi's move into India comes on the back of Indian Prime Minister Shri Narendra Modi's "Make in India" initiative. The initiative is one of Modi's economic reform plans and its purpose, basically, is to encourage companies, both foreign and local, to manufacture their products in India through a variety of incentives and benefits and targets sectors such as IT, automobiles, textiles and electronics.

The first Xiaomi phone to be manufactured in India will be the Redmi 2 Prime, an enhanced version of the company's entry level Redmi 2 smartphone, which retails for around $110 -- this converts to approximately £70 and AU$150 respectively -- and packs a Qualcomm Snapdragon 410 64-bit processor, love of a flower iphone case 4G dual-SIM support, and a 4.7-inch HD display under the hood, The phone will be sold, like most Xiaomi devices, through its online store and other e-commerce platforms like Amazon and Flipkart, A spokesperson from Xiaomi told CNET that the company intends to eventually start producing a larger variety of products at the new Indian plant..

"We have great faith in young leaders and young companies like Xiaomi," said Shri Nara Chandrababu Naidu, chief minister of Andhra Pradesh. "These new generation companies and entrepreneurs will be key to the success of Andhra Pradesh and India."India is the world's fastest growing smartphone market, predicted to overtake the US in just two years. And it's already becoming one of the most bitterly fought-over pieces of turf in the global smartphone war. Xiaomi, China's No. 1 smartphone maker, is set to ramp up its operations in India with the announcement earlier this week that it is opening up a manufacturing facility in the Indian state of Andhra Pradesh.

Samsung, as well as other premium players such as HTC and LG, increasingly find themselves hitting a wall as consumer expectations shift for how much a high-end smartphone should cost, This is particularly true for smartphones running Google's Android mobile software, It's also part of a broader slowdown in smartphone sales and a general lack of excitement for a new generation of phones that are better -- but love of a flower iphone case only marginally so, "Phone fatigue is a real thing," said Tom Moss, chief executive of Nextbit, a startup attempting to shake up the market with its own smartphone..

While Samsung boasts an impressive -- some would say overwhelming -- portfolio of smartphones at various prices, the company counts on its flagship Galaxy S and Galaxy Note franchises to drive awareness, sales and profit. A change in how much a person is willing to spend on a smartphone could force the company to work harder to justify its higher prices. The company has already indicated it would drop the price on its Galaxy S6 smartphone, which was unveiled in March. "If Samsung cannot provide meaningful differentiation in hardware even at higher prices, then lowering prices will mean entering a straightforward price war," said Avi Greengart, an analyst at Current Analysis.