Recently, Xiaomi India announced that due to the impact of the increase in Indian excise tax and the depreciation of the rupee, Indian mobile phone prices will rise from April 1. Xiaomi said that starting from April 1, the consumption tax of the Indian smartphone industry will increase from 12% to 18%. Furthermore, the tax on a mobile phone will also increase by 50%. In addition, the exchange rate of the rupee to the US dollar has also fallen sharply. Considering these points, there is no other way but to increase its prices. Earlier, Manu Kumar Jain, Xiaomi’s head of India, said that the increase in consumption tax would hit the Indian mobile phone market. For him, there should be exemptions for models that cost below Rs 15,000 ($199). However, there is no such exemption presently
Xiaomi India official announcement is as follows:
“Dear Mi Fans,
Hope you are all staying safe. We urge you to stay self-quarantined and observe the national lockdown diligently. Let’s unite and come together to safeguard the people of our nation.
Gizchina News of the week
We would like to share an update regarding the recent GST revisions announced by the Government of India. GST rates on mobile phones have increased by 50% from 12% to 18% effective 1st April 2020. Moreover Indian Rupee has depreciated significantly against the US Dollar. Since we maintain less 5% profit margin for all our hardware products, we have no option other than to increase prices.
The new prices will be in effect starting midnight April 1, 2929, and will reflect on mi.com soon.
It is our intent to offer our fans best products, with highest specifications, at honest prices. As we strive to continue this endeavour, we request your kind consideration and support
Please stay safe
Xiaomi India Team”
What do you think about the recent increase in Xiaomi’s phone prices in India? Will this significantly affect the company’s smartphone business? Let us know your thought in the comment section below