In a recent announcement, the government of India has decided to increase the GST on smartphones from 12% to 18% starting April 1, 2020. This increase in the GST rate will further impact the smartphone segment as the consumers come from different geographies and disposable incomes and are price sensitive.
The recent COVID-19 pandemic has highly impacted the smartphone industry, leading to a price hike of components and supply shortage. Further, the Indian Rupee rate has been continuously fluctuating and facing depreciation currently. This has impacted the overall cost of the smartphone device, therefore many smartphone brands have already increased the price of smartphones in 2019 and 2020. Despite all these issues, realme hasn’t increased the price of our smartphones since H2 2018.
Today we are announcing that realme smartphones will have to boost the prices up for the first time since 2018. It’s never easy for realme as a new brand to keep providing the latest technologies across different price segments in India. We sincerely hope you will continue to support not only us but also the whole smartphone industry, for more amazing technologies and surprises in the future.
All adjusted prices of realme smartphones will be listed on our official website realme.com for your further reference.
In addition to this, Neil Shah, Vice President, Research at Counterpoint said “The COVID-19 pandemic has adversely impacted the mobile phone ecosystem globally and India. This has put serious pressure on mobile phone brands due to the irregular supply of components and support from the supply chain in China, South Korea and elsewhere. Furthermore, this pandemic has also resulted in foreign exchange fluctuation and a recessionary climate, though brands have not calibrated the pricing due to this uncertainty so far. That’s why we have seen some leading brands already considering price hikes in 2020.”
“However, the upcoming GST hike of 6% would further compel most brands to increase the price of the existing devices as it is beyond their control. Moreover, the value of money smartphone players like realme which have been very price competitive and refrained from increasing any prices thus far, will have no choice but to increase the prices to match the GST hike.”