Chinese smartphone brand Realme said it would not pass on the GST hike to users on Tuesday. Ahead of a delayed launch of its upcoming Narzo series, the company has decided to absorb the cost of the hike. “Realme Narzo pricing will consider the GST and currency rate and the price of the devices will not be increased in April,’ the company said.
The company was originally set to launch the Realme Narzo 10 and Realme Narzo 10A during a digital-only event on March 26. However, the launch has now been delayed indefinitely with the 21-day lockdown in India. “The cost of Realme Narzo series has already been considered keeping the GST hike and currency rate,” the company added.
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With the GST Council, headed by Finance Minister Nirmala Sitharaman, increasing the GST on mobile phones from 12 percent to 18 percent, industry experts had indicated that it would hit the industry and brands would not be in a position to absorb this impact. “Realme hasn’t increased the price of its smartphones since the second half of 2018 despite various factors like the price hike of smartphone components and supply shortage as well,” said the company.
The Indian rupee rate has been continuously fluctuating due to the coronavirus pandemic. It is currently quite low as compared to US dollar. “This has impacted the overall cost of the smartphone device. Many smartphone brands have increased the price of smartphones in 2019 and 2020 due to issues like supply chain shortage but Realme has always tried to absorb these additional costs,’ the company noted.
The new dates of the Realme Narzo series launch will be communicated by the company in the near future once the ongoing situation is improved. The company was set to launch the series and make it available for purchase on Flipkart. Tipster Ishan Agarwal assumed that the price of the phones could fall under Rs 15,000 in India. However, we expect Realme to price its Narzo 10 phone under Rs 10,000.
(With inputs from IANS)