Xiaomi India has announced that it will soon increase the prices of its Redmi and Mi phones. The reason is, of course, the increase in Indian excise tax and the depreciation of the rupee. Xiaomi has confirmed that the new prices will reflect on its Mi.com website starting April 1, 2020. The company says the consumption tax of the Indian smartphone industry will increase from 12 percent to 18 percent. Also Read - Xiaomi pledges to donate Rs 15 crore to battle against Coronavirus outbreak in India
The latest tweet of Xiaomi India also mentioned that the tax on a mobile phone will also increase by 50 percent. Furthermore, the exchange rate of the rupee to the US dollar has also fallen steeply. Poco also seems to have hiked the prices of its phone. The Poco X2 price in India is currently set at Rs 16,999. Apart from Xiaomi and Poco, Oppo is also increasing its phone prices. Also Read - Xiaomi Mi Note 10 Lite with Snapdragon 730G, penta-camera setup gets FCC certification
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As per a report by Gizmochina, Oppo has started notifying dealers and partners in India about its plan to increase pricing. While Oppo hasn’t yet officially declared anything, Xiaomi wrote an open letter to users. The company says, “Hope you are all staying safe. We urge you to stay self-quarantined and observe the national lockdown diligently. Let’s unite and come together to safeguard the people of our nation. We would like to share an update regarding the recent GST revisions announced by the Government of India.” Also Read - Alleged Xiaomi Redmi Note 9 spotted on 3C certification website
“GST rates on mobile phones have increased by 50% from 12% to 18% effective 1st April 2020. Moreover, the Indian Rupee has depreciated significantly against the US Dollar. Since we maintain a less 5% profit margin for all our hardware products, we have no option other than to increase prices.”
“The new prices will be in effect starting midnight April 1, 2020, and will reflect on mi.com soon. It is our intent to offer our fans the best products, with the highest specifications, at honest prices. As we strive to continue this endeavour, we request your kind consideration and support,” the company further added.
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