Handset companies hike prices on high GST

New Delhi: India’s top handset makers such as Xiaomi, Apple, Samsung, Oppo, Realme and Vivo have increased smartphone prices following the increase in GST rate to 18% from 12% from April 1, and to factor in a weaker rupee.“The rupee has depreciated significantly against the US dollar. Since we maintain less than 5% profit margin for all our hardware products, we have no option other than to increase prices,” Manu Jain, India head at Xiaomi, India’s leading handset maker, said in a note to customers.Samsung, which has increased prices by up to ₹6,000 on its handsets, has also conveyed its move to its retail partners and distributors. India’s third ranked smartphone maker declined to comment.Apple on Wednesday increased prices of iPhones by over 5%, informing retailers that this was due to the increase in GST. This is the second price hike by Apple in two months, the previous one being because of hiked customs duty.No. 2 handset maker Vivo has also increased the prices of Vivo V17, Vivo S1 Pro, Vivo Y19, Vivo Y15, and its several other phones by up to ₹2,000, a retailer said. Oppo, the fourth largest, has also increased prices for its A, F and Reno smartphone series in the country, according to Mumbai-based retailer Mahesh Telecom."After serious consideration, we will be revising the prices of our products from April 1, across all platforms. We will keep monitoring the market situation and pass on the benefits to our consumers in our endeavour of bringing the best products to them at an affordable price range in the future," an Oppo spokesperson said.A spokesperson for fast-growing smartphone maker Realme added that the Covid-19 pandemic has severely hurt the smartphone industry, leading to a price hike of components and supply shortage. Furthermore, the Indian rupee rate has been continuously depreciating against the US dollar. "This has impacted the overall cost of the smartphone device. We are announcing that Realme smartphones will have to boost the prices up for the first time since 2018".

from Economic Times https://ift.tt/2X3nKIK