I Investigated India’s Biggest Smartphone Controversy

AI Plus launched with the promise of delivering India's first fully sovereign smartphone, emphasizing that their products were expertly engineered and built in India, prioritizing privacy and storing data locally. The CEO, Mav Sheth, explicitly criticized other companies for not meeting these standards, particularly targeting Chinese phones and their potential data privacy risks. An advertisement from AI Plus depicted a negative stereotype of a 'Chinese guy' taking a loan in an Indian man's name, further fueling anti-Chinese sentiment.

Mav Sheth, the CEO of AI Plus, has a significant background in the smartphone industry, having worked for Chinese brands like OPPO, Realme, and Honor. This history raises questions about his sudden strong anti-Chinese stance. Despite his previous affiliations, AI Plus launched phones at competitive prices, though the claims of being fully Indian-made and data-secure soon faced scrutiny.

YouTuber Gan Therapy discovered that the 'Next Quantum OS' on AI Plus phones bore a striking resemblance to Realme's OS. More critically, unremovable pre-installed apps like 'Clean Assistant,' 'Phone Clone,' and 'Mobile Butler' were found to be Chinese, with 'Phone Clone' explicitly stating Sprocom Technologies (a China-based company) as its service provider. An Android researcher confirmed these apps were indeed Chinese, designed to look like native apps by changing package names. This directly contradicted AI Plus's promise of data staying in India. Subsequent investigation revealed Sprocom as a Chinese Original Design Manufacturer (ODM), suggesting AI Plus largely rebranded existing Chinese designs rather than independently designing them. An industry insider further claimed Sprocom is a 'low-tier ODM' known for using cheaper, potentially secondhand components, implying lower quality than even other Chinese brands.

AI Plus launched new products, including the Pulse 2 and Nova Flip. Techweiser revealed bloatware on the Pulse 2 and the continued presence of the hidden Chinese apps. Techbar exposed that the Nova Flip was a re-branded Chinese ZTE Nubia Flip 2, with numerous ZTE identifiers in its software. Further investigation found other AI Plus products, like a kids' watch, linked to Shenzhen-based Leifine Technology, another ODM. Most notably, the AI Plus Wearbuds, claimed to be 'designed in India and patented in India,' were found to be identical to products from Chinese company AI Power, which even posted about 'great cooperation with AI Plus brand,' and shared a strikingly similar logo. Within 14 days, both Techweiser's and Techbar's videos were removed due to an ex-parte injunction from the Delhi High Court. This legal order also included a 'John Doe' clause, effectively banning any future negative criticism about AI Plus. Legal experts highlighted the unusual nature of such an injunction for tech reviews, especially in India where defamation laws are stricter.

AI Plus's website featured suspiciously perfect five-star reviews, some of which were clearly support queries or negative comments still rated five-star. Their terms and conditions included template-like text errors, and their supposedly independently taken photos were questioned by photographers. The personal loans clause in their privacy policy, which previously specified 'personal loans' according to the Wayback Machine, also contradicted their anti-loan ad campaign. When confronted, CEO Mav Sheth downplayed his anti-Chinese statements, claiming Chinese phones weren't a risk to consumers but to the economy. He initially denied the presence of Chinese apps on Indian versions of his phones but pivoted when presented with evidence, claiming the software on the interviewer's phone 'didn't exist.' Further testing showed the Chinese apps were indeed on multiple newly purchased AI Plus phones in India, with no updates to remove them. He also denied bloatware on new phones, despite clear evidence. He eventually admitted the Pulse 1 was 'imagined in China' but then convoluted his explanation, and only acknowledged ZTE's involvement in the flip phone in a 'tiny footnote' on the box, not in promotions.

Sheth defended the injunction by claiming the YouTubers were unresponsive and that their videos contained unverified claims, jeopardizing his significant investment. He emphasized the need for brands to have their 'side of the story' heard. However, the use of an ex-parte injunction, especially against a 'John Doe,' raised concerns about suppressing free speech and creating an unfair power dynamic. Later, Sheth expressed regret, stating he 'should not have been so harsh' and was 'willing to take it back,' blaming 'agencies' for manipulating misunderstandings. However, this change of heart felt disingenuous, as it coincided with the first court hearing where Techweiser revealed AI Plus allegedly used tactics like naming 'John Doe' as the main defendant and sending the legal notice to a fake email address to prevent timely defense. The judge has summoned Mav Sheth to court to answer these allegations, and the YouTubers' videos remain down, indicating the suppression of negative coverage has already achieved its intended effect.