At an event in New Delhi yesterday, Xiaomi launched two new smartphones and a new LED 4K smart TV. And one thing that was common across all the products were Xiaomi’s traditional pricing, which was affordable. However, with the increased levy on component imports in the federal Budget, many smartphone manufacturers have increased the price of the products in India, and the same was likely to come from Xiaomi. But, Xiaomi has reportedly confirmed that it will not increase the prices of its existing mobile phone models.
As per a report by ET, Manu Kumar Jain, managing director of India operations, said that Xiaomi was working on a plan to absorb the impact of the increase in the import duty on components. “We’re working on a plan which will hopefully ensure that we won’t have to raise prices. Of course, we don’t have the margins but we won’t increase prices,” Jain said.
The entire move of increasing the import duty was aimed by the government to give a little nudge to its Make In India initiative. Manu Jain also said supporting the government’s move that it is exploring local manufacturing options for the Mi TV, “We will definitely consider local assembly once they (Mi TV 4) reach a certain threshold. We will have to take two things into consideration; one, whether the scale can justify the financial investment that either us or our partners make, and two, whether the kind of technology we need to make the TV here can be built,” he said.
Jain went on to say that Xiaomi may consider its existing partners in the country, or may choose companies such as TCL that manufacture the TV-sets in China.
According to a recent IDC report for Q4 2017, Xiaomi dethroned Samsung to head the India leader-board for two consecutive quarters. As the company announced its plans yesterday, it aims to sustain the leadership by launching six to eight phone models this year, besides the Mi TV. It also expects offline sales to make up 30-40 percent of its overall revenue by the year end, from around a quarter now. Xiaomi already manufactured 95 percent of its mobile phones in India through Foxconn’s India arm.