Smartphone Price to Increase in India, Know the Reason Behind it | Due to worldwide chip shortages and supply chain issues, many major mobile phone companies have hiked the prices of their smartphones.
- Smartphone prices may increase in India
- Worldwide chip shortage
- 1,500 increase on the phone by these companies
The cost of cell phones made in India might go up soon. The Central Board of Indirect Taxes and Customs has given a request.
There is going to be another big shock for the consumers in India soon, the prices of mobile phones (Smartphone) are going to increase more in the coming time. The Central Board of Indirect Taxes has issued an order. It has been mentioned that depending on the components used in the mobile phone, the custom duty may be increased further. If the prices of the components used in the phone go up, it simply means that the companies can pass the burden of these additional charges directly on to the consumers.
The order said that more custom duty will be levied depending on the inputs used in mobile phones. Now if the custom duty increases on the components used in the smartphone, companies can compensate this increased cost by increasing the price of their products for consumers.
Smartphone Price to Increase in India, Know the Reason Behind it
How much will the duty increase?
The basic customs duty is likely to be increased by 10 percent on imports of smartphone display assemblies with back support frames. If antenna pins, power keys and other accessories are imported along with the display assembly, the customs duty will be 5 percent and thus the total import duty will be 15 percent. Recently Maruti Suzuki Laungh New Alto K10.
Because of this, cell phone organizations can likewise expand the cost of their portable sets by 10 to 15 percent. Recently Gujarat Police board has decide to increase Gujarat Police Grade Pay.
The CBIC in its order also said that 15 percent basic custom on complete assembly if items like SIM tray, antenna pin, speaker net, power key, slider switch, battery compartment, flexible printed circuit, sensor, speaker, fingerprint etc. are imported. Duty will be levied.
Which components will be included in the duty list?
According to this list, the components and subcomponents of the display assembly of the cellular mobile phone are included. The display assembly consists of touch panel, cover glass, brightness enhancement film, indicator guide light, reflector, LED blacklight, polarizers and LCD driver mounted on a flyable printed circuit.
Currently due to worldwide chip shortage and supply chain issues, major mobile phone companies including Redmi, Oppo, Samsung have hiked their prices by an average of Rs 1,500. The price hike has also affected the smartphone market in India.
According to a report by research company Counterpoint, in the second quarter of 2022 i.e. between April-June, smartphone shipments in India have grown by 9 percent year-on-year. But it fell 5 percent on a quarterly basis to around 3.7 crore units. 3.8 crore units were shipped in India.
Vivo Investment in India
In the world of smartphones, big companies are constantly increasing their investments to expand their reach. Now the Chinese smartphone maker company Vivo has also come forward in this list. According to reports, Vivo is planning to invest Rs 3,500 crore in India in the next two years.
Regarding the new investment in India, an official of the Vivo company revealed that it also plans to start exporting its devices to India this year.
Vivo India Director Paigam Danish told PTI on Wednesday that the investment is part of the Rs 7,500 crore commitment the company has made to India. We have invested a total of Rs 1,900 crore till 2021.
Danish said that he has already invested Rs 1,900 crore till 2021. We will invest Rs 3,500 crore till 2023 and then we are committed to invest Rs 7,500 crore in the next phase. This investment is only in construction.
He said that the company also caters to all local demand for mobile phones from its facilities located in Greater Noida and now wants to start exporting smartphones to India. He said that Vivo has crossed the number of 10 crore customers in the Indian market.