Xiaomi India has announced that it will be increasing the prices of its smartphones starting today, April 1, 2020. The announcement comes days after the recent increase in GST rates on mobile phones from 12 percent to 18 percent that was slated to come into effect today.
This essentially means that all phones sold by the company will be more expensive. While the change in price hasn’t reflected on the company’s website, certain people on Twitter are noticing increased pricing of the Redmi Note 7 Pro as well as the company’s sub-brand Poco selling its latest smartphone, the Poco X2, Rs 1000 more than the launch price.
This might sound like an April Fools joke, but Xiaomi Global VP and India head, Manu Kumar Jain confirmed the price hike on Twitter. He mentioned that the company’s policy of maintaining less than 5 percent profit margin has left no choice but to increase the prices of its smartphones. Notably, the depreciation of Indian Rupee against the US dollar is another reason why the company is increasing the prices of its smartphones.
Mi fans, #GST on mobile phones has increased by 50% from 12% to 18%.— Manu Kumar Jain (@manukumarjain) March 31, 2020
After much deliberation & in keeping with #Xiaomi policy of maintaining <5% margin on our hardware products,we will be increasing prices of our products.
New prices will be effective immediately. Thank you! 🙏 pic.twitter.com/mdTqKdXm3r
A report suggests that a similar move will be followed by other brands including the likes of Realme, Vivo, Oppo and more. As for Xiaomi, expect phones like the newly launched Redmi Note 9 Pro, Redmi K20, and the Redmi Note 8 Pro to get revised prices. Xiaomi is also expected to launch the Mi 10 series in India after the original plan to launch the phone on March 31 was cancelled.