Xiaomi, Redmi, POCO smartphones become costlier due to GST hike
What's the story
Xiaomi has increased the prices of its smartphones in India, in a bid to cushion the impact of the raised tax on mobile phones. The price hike, effective immediately, is applicable to all Mi, Redmi, and POCO-branded phones available in the country. For the uninitiated, last month the government increased the GST rate on mobile phones by a hefty 50% from 12% to 18%.
Twitter Post
Here's the official announcement
Mi fans, #GST on mobile phones has increased by 50% from 12% to 18%.
— Manu Kumar Jain (@manukumarjain) March 31, 2020
After much deliberation in keeping with #Xiaomi policy of maintaining 5% margin on our hardware products,we will be increasing prices of our products.
New prices will be effective immediately. Thank you! 🙏 pic.twitter.com/mdTqKdXm3r
Information
Depreciation of Rupee against the US dollar also a concern
According to Xiaomi's official statement, the increased GST rate on mobile phones as well as the significant depreciation of the Rupee against the US Dollar has left "no option" for the company other than to increase the prices of its products.
New prices
POCO X2 has become costlier by Rs. 1,000
Xiaomi's sub-brand POCO has also announced a price hike for its recently-launched POCO X2 smartphone. The company's general manager in India, C Manmohan, has revealed that the mid-range handset has become costlier by Rs. 1,000. As for the updated prices, the entry-level 6GB/64GB variant now costs Rs. 16,999 while the 6GB/128GB and 8GB/256GB models are priced at Rs. 17,999 and Rs. 20,999, respectively.
Information
Redmi K20 series has received a hike of Rs. 2,000
Further, according to Flipkart's listing, the Redmi K20 series has received a hike of Rs. 2,000. The regular K20 model now starts at Rs. 21,999 for the 6GB/64GB model while the K20 Pro variant is now listed at Rs. 26,999 for the entry-level 6GB/128GB configuration.
Updated prices
New prices for some models yet to reflect on mi.com
According to Xiaomi's official announcement, the new prices of the smartphones will reflect on mi.com. However, at the time of writing, most of the models were listed at their old prices. For instance, the Redmi K20 was still priced at Rs. 19,999 while the Redmi Note 7 Pro (4GB/64GB) was listed at Rs. 9,999 as against its new price of Rs. 10,999.