Xiaomi increases prices of its best-selling products. Here's why
What's the story
Xiaomi is increasing the prices of Redmi Note 5 Pro smartphone and Mi TV 4 (55-inch model) by Rs. 1,000 and Rs 5,000 respectively. The new prices will be effective from May 1. For this price hike, the company has cited recent changes in Printed Circuit Board Assembly (PCBA) import taxes and the depreciation of rupee since the beginning of 2018. Here's more.
Twitter Post
Price hike to cushion increased costs, ramp up supply: Xiaomi
Mi fans! In order to ramp up supply for #RedmiNote5Pro #MiTV4 (55), we're marginally increasing the prices. This is because of the recent changes in PCBA import taxes INR depreciation.
— Manu Kumar Jain (@manukumarjain) April 30, 2018
This will help us bring more units to all of you!
Read more: https://t.co/T6aykphV0q pic.twitter.com/3NrgS4sxFd
Details
Everything you need to know about the new prices
The Redmi Note 5 Pro will now start at Rs. 14,999 for the 4GB RAM + 64GB variant. However, the price of the 6GB variant remains unchanged at Rs. 16,999. The Mi LED TV 4 (55-inch) will retail at Rs. 44,999. These new prices, effective from May 1, will be applicable across both online and offline channels.
Information
Price hike won't affect pre-orders of Redmi Note 5 Pro
Xiaomi said, "it would be honoring all pre-orders of Redmi Note 5 Pro 4GB + 64GB already placed on Mi.com at the original price of Rs. 13,999" - an offer that was recently started by the company.
The Reason
Indian government increases import duty on electronic components
Earlier this month, the Central Bureau of Excise and Customs imposed a 10% duty on the import of electronic components. The move follows government's earlier decision to impose a 10% duty on PCBs and 15% on LCD panels. Additionally, import duty has been increased by 10% to 20% on lithium-ion batteries, and by 5% to 15% on chargers, battery packs, and other electronic components.