Here’s why some Xiaomi devices are getting expensive
The revised prices come into effect from today. Here’s everything you need to know about Xiaomi’s price hike.
Xiaomi raised prices on Monday of its select devices as part of the company's efforts to ensure steady supply. Xiaomi VP Manu Kumar Jain said that the company has raised price of its Redmi Note 5 Pro by ₹1,000 and Mi LED TV 4 55-inch by ₹5,000. The revised priced come into effect from May 1.
"We have been seeing huge demand for Redmi Note 5 Pro and Mi LED TV 4 55-inch. In order to ramp up supply for Xiaomi Redmi Note 5 Pro, we are importing a significant amount of PCBAs as our local PCBA production would only ramp up 100% by CY Q3, 2018. With the recent changes in tax structure on PCBA imports and the depreciation of rupee (~5% since the beginning of the year), this has resulted in significant increase in costs for us," Jain said in a Facebook post.
After the price changes, Xiaomi Redmi Note 5 Pro 4GB + 64GB model will sell for ₹14,999 whereas Mi LED TV 4 55-inch will now cost ₹44,999. The price change will reflect on Mi.com, Mi Home Stores, Flipkart and other offline stores.
"We hope that with the substantial increase in the manufacturing capacity, we would be able to do a monthly volume of one million Redmi Note 5 Pro, Jain added.
Last month the Indian government had imposed a 10% duty on import of certain smartphone components including the Populated Printed Circuit Boards (PCBs), camera modules and connectors in order to boost the Make in India initiative. The duty hike is expected to widely affect all smartphone companies which don't manufacture or source these components locally.
Xiaomi has propelled itself to top spot in the Indian smartphone market in last few quarters. According to a recent IDC report, the company surpassed Samsung to become number one smartphone company in Q4, 2017. Xiaomi took the top spot with 26.8% market, marginally beating Samsung's 24.2%, said the IDC report.
According to the latest Counterpoint Research, Xiaomi had 31.1% market share in Q1, 2018. Xiaomi shipped over 9 million units in the quarter, which is highest for any vendor since Q1, 2014, said a Canalys research.