After Oppo, another Chinese smartphone maker Xiaomi has announced to increase the price of all the devices of MI and Redmi series. These two series of smartphones are expensive because GST rate on mobile has also increased. Let us tell you that the Government of India had increased the GST imposed on the phone from 18% to 18% only a few days ago. At the same time, the increased prices of Xiaomi’s smartphones will soon be updated on the company’s site.
Xiaomi tweeted about the increased price
Xiaomi tweeted and wrote that there has been a big change in GST. It has been increased from 12 to 18 per cent. This is the reason why we have decided to increase the price of our product. Also, it is further written that the new prices will be effective from today ie 1st April.
Mi fans, the GST on mobile phones has increased by 50% from 12% to 18%.
Considering a few other factors and keeping with the #Xiaomi policy of making <5% margin on our hardware products, we will be increasing the prices of our products.
New prices will be effective immediately. pic.twitter.com/S875IOfhT7
— Mi India (@XiaomiIndia) March 31, 2020
Manu Kumar Jain gave a big statement
Regarding the increased price of smartphones, Xiaomi CEO Manu Kumar Jain has said that the company is working on hardware less than 5% profit margin. In such a situation, we have no other way than to increase the price of the phone. Also, the weak position of Indian rupee against GST and US dollar has also been considered as a reason behind the rising price of phones.