Xiaomi Increases Phone Prices to Counter 50% GST Hike; Effective from Today
If you've been keeping upward with the latest updates, you would know that the appurtenances and services tax (GST) on mobile phones was hiked from 12% to 18% in India in March. It comes every bit a huge blow for telephone makers and Xiaomi seems to be the first one to have announced a price hike for its unabridged portfolio.
No, this is not an Apr Fool'south joke as many Mi fans suspect. This is 100% existent. Xiaomi India Physician Manu Kumar Jain took to Twitter last night to interruption this news. The caption of his tweet, as you tin see below, read – "Later much deliberation & in keeping with #Xiaomi policy of maintaining <5% margin on our hardware products, we will exist increasing prices of our products."
The GST rate hike comes in effect today, i.eastward 1st Apr 2020, and Xiaomi has now taken the necessary measures to counter the effect on its business concern. The reasons for the price hike are cited in the open up letter attached below. Jain mentions that the GST charge per unit hike, combined with depreciation in Rupee vs Usa Dollar rates has led to this decision.
Mi fans, #GST on mobile phones has increased by 50% from 12% to 18%.
Afterward much deliberation & in keeping with #Xiaomi policy of maintaining <5% margin on our hardware products,we volition be increasing prices of our products.
New prices will exist constructive immediately. Thank you! 🙏 pic.twitter.com/mdTqKdXm3r
— Manu Kumar Jain (@manukumarjain) March 31, 2020
Too, if you are not aware, Xiaomi is determined to stick to less than 5% profit margin on all of its products. This move was announced dorsum in 2018, making it possible for the Chinese giant to offer its devices at and then-chosen "honest prices." So yeah, there wasn't much selection left for Xiaomi except for bumping upwards the retail prices of its smartphones.
What does this mean for you? Well, all of your favorite Xiaomi, Redmi, likewise as Poco phones, are going to be more expensive going forward. The company is nevertheless to update its official website only the newer prices for some phones have already gone into upshot on eastward-commerce platforms. You cannot place an order due to the ongoing lockdown in Republic of india but yeah, the updated prices are live on Flipkart.
The newly launched Redmi Note 9 Pro that was launched starting at Rs. 12,999 back in March now starts at Rs. 14,999 for the 4GB+64GB base variant. The Redmi K20 serial receives a huge price hike besides. Redmi K20 and K20 Pro at present get-go at Rs. 21,999 and Rs. 26,999 respectively as opposed to Rs. 19,999 and Rs. 24,999 that the base of operations variants were selling for.
In addition, Xiaomi's sub-brand Poco has also confirmed the price hike in a alphabetic character on Twitter. Poco X2 today received a price hike whereas at that place's no word on the Poco F1. Poco X2 debuted starting at Rs. 15,999 but its 6GB+64GB base variant is now selling for Rs. 16,999 over on Flipkart. The 6GB+128 and 8GB+256GB variants volition at present cost Rs. 17,999 and Rs. 20,999 respectively.
The increased taxation rate on smartphones tin exist seen equally a regressive move and one that stands opposed to the digital revolution that India may accept been looking forward to. Apart from Xiaomi, it's currently rumored that Oppo has hiked telephone prices by 5% to balance the effects of the new GST rate.
Editor's Note: Updated to include Poco's toll hike confirmation. Tweet attached and new pricing info included.
Source: https://beebom.com/xiaomi-increases-phone-prices-counter-gst-hike/
Posted by: craigstoing.blogspot.com
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