I have been an independent financial adviser for over 11 years in the city and in recent years turned my experience in finance and passion for journalism into a full time role. I perform analysis of Companies and publicize valuable information for shareholder community.
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There is a big new for all Smartphone lovers. Now, Smartphone in India are likely to get costly with increased GST. This is also happening due to a weak position of Rupee compared to USD. The Indian government has recently announced that there will be GST hike on Smartphone. This hike will mount from 12% to 18% with effect from April 1, 2020. Previously, Samsung, Oppo, and Xiaomi announced the price hike and now Realme too took the same decision.
The COVID-19 pandemic has badly impacted the industry that leading to a supply shortage of Smartphone components. In addition to this, the Indian Rupee rate also got lower with continuous fluctuations. These factors have impacted the Smartphone industry which raised the price of the Smartphone devices. The current economic condition has put pressure on Smartphone companies to increase the Smartphone cost.
Ongoing circumstances are adversely affecting the mobile device ecosystem in India and globally. Additionally, the foreign exchange fluctuation is also force the adverse situations. This is the reason why Indian government has decided to increase the GST on Smartphone devices. The present situation is not looking good for any sector and hence no different situation of Smartphone industry.
The imposed GST hike of 6% is going to compel Smartphone brands to raise the device charges. This price hike is beyond control of Smartphone brands and they have to other option than this. Smartphone brands have to increase device prices in order to match the GST hike. Smartphone users have to understand the current condition and support the Smartphone brands during this transition.
This adverse condition is likely to continue till the effects of COVID-19 get reduced. Likewise, many Smartphone companies have already decided to raise the prices of Smartphone with the hike of GST.