Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

China's Xiaomi to set up India customer data center to deflect privacy concerns

Published 10/27/2014, 04:05 AM
Updated 10/27/2014, 04:11 AM
© Reuters People stand near a logo of Xiaomi ahead of the launching ceremony of Xiaomi Phone 4, in Beijing

MUMBAI (Reuters) - Chinese smartphone maker Xiaomi Inc said on Monday it plans to set up a data center in India next year to store local user data, as the fast-growing company seeks to deflect concerns about privacy that could hamper its efforts to expand overseas.

The move by privately owned Xiaomi comes after it said last week saying it was migrating some data on non-Chinese customers away from its servers in Beijing due to performance and privacy considerations.

Xiaomi, whose low-priced but feature-rich smartphones have made it the biggest smartphone vendor in China, entered India this year with plans to invest heavily to secure rapid growth in the world's third-largest smartphone market.

It sells its phones in India via Flipkart.com, the country's biggest online retailer, and said last month it planned to sell 100,000 phones a week in the country in October.

On Monday, Xiaomi said it had been moving Indian users' data from its Beijing data center to data centers of Amazon Web Services, the cloud computing platform of the online retailer Amazon.com Inc, in Singapore and the United States since early 2014. It said that process would be completed by the end of the year.

Xiaomi has faced several privacy controversies, including accusations from international security researchers and a government agency in Taiwan that it funnels unauthorized user data back to its servers in Beijing. Indian media reported last week that the country's air force had issued alerts to its personnel and their families against using Xiaomi phones on security concerns.

The Chinese company said on Monday it was attempting to contact Indian authorities for more details on local media reports, adding that it did not collect user data without permission.

© Reuters. People stand near a logo of Xiaomi ahead of the launching ceremony of Xiaomi Phone 4, in Beijing

(Reporting by Zeba Siddiqui; Editing by Kenneth Maxwell)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.