I don’t think SMIC refuses to sell to non-Chinese companies. Nokia mostly uses Unisoc chips, which are made in China (not sure if by SMIC).
But if they did, it would be a pretty serious problem, since I don’t think SMIC even has a viable competitor in the entry-level smartphone chip market.
It could be a different stratum of society. Maybe like politicians and businessmen. They say ~5% of Indians have iPhones, but I only know two people with iPhones (and one was second-hand).