Will IAF warning hit sales of new Xiaomi phones in India?

In Pic: Xiaomi Redmi 1S. Indian Air Force (IAF) has reportedly warned against using the devices manufactured by the Chinese company Xiaomi. The IAF in its note mentioned many instances of Xiaomi phones and tablets sending back data to China. It cited a Hong Kong based user who claimed that the Redmi Note phone was automatically connecting to servers in China and sending back photos, and messages.

In Pic: Xiaomi Mi3. Xiaomi plans to launch its flagship Mi 4 phone by the year-end in India and also plans to set up its Mi Home experience zone in Bangalore within four to six months, Manu Kumar Jain, Xiaomi's India head of operations, said in August. How will the warning affect the  sales of Mi 4 phone remains to be seen.

Xiaomi has held flash sales of its phones RedMi 1S and Xiaomi Mi3 on Flipkart in India which have seen overwhelming response with the units getting out of stock in seconds.

Chinese companies and consortiums with Chinese links have already been barred from bidding for contracts to build Indian ports and in February this year, the previous UPA government had accused Chinese telecom equipment maker Huawei of allegedly hacking state-owned BSNL's network.