Smartphone, Wearable prices in Budget 2022-23: Will you pay more NOW?

Budget 2022-23 made a couple of announcements regarding the technology sector. While 5G spectrum auction is getting all the attention, the Finance Minister Nirmala Sitharaman also had a couple of updates to share in relation to smartphone components and their prices. The government has given concessions to manufacturers of mobile phone chargers and camera lenses, both of which are expected to affect the prices.

“Duty concessions are being given to parts of the transformer of mobile phone chargers and camera lens of mobile camera module and certain other items. This will enable domestic manufacturing of high growth electronic items,” said Sitharaman in her speech.

Additionally, customs duty rate has also been adjusted to make possible easy manufacturing for wearables, hearables and electronic smart meters.

What does this mean for us?

Technically, this should translate to slightly lower prices for smartphones and other wearable devices. However, the price benefits from manufacturing mobile phone camera lenses and chargers is most likely to be offset by the increasing difficulties in the supply chain of components, which is a result of the global chip shortage.

Wearables, on the other hand, could see some notable price drops this year. The wearables and hearables segments has seen tremendous activity ever since the pandemic hit us in 2020. The affordable wearable segment has seen lots of fitness tracker, wireless earphone, smartwatch launches lately.

Vikas Jain, Co Founder and CEO, World of Play, says, “We support the government's focus on technology, it will help many tech based companies like WORLD OF PLAY to come up with exciting product experience for the Indian consumers. We welcome the focus of government on the wearables and acoustic component ecosystem and domestic manufacturing and believe on a long term, this focus will make India as a formidable design and manufacturing powerhouse.”

“The government has today announced duty exemption on electronics manufacturing including wearables and hearables. This is a very commendable move and will help Indian companies like Mivi that are manufacturing in India. We will be able to not only create more number of jobs but also offer a more price competitive product to our customers. It will also encourage more Indian brands to look to produce locally and reduce their dependence on imports,” said Midhula Devabhaktuni, Co-founder and CMO, Mivi.