Xiaomi has officially announced that they will be increasing the price of Redmi Note 5 Pro and Mi LED SMart TV 4 in India. In a Facebook post today on the official Mi India page they have said that due to the hike in PCBA import duty they are increasing the prices. Due to the new price, Redmi Note 5 Pro 4 GB RAM and 64 GB storage variant will now cost Rs 1000 more. Whereas Xiaomi has increased the prices of Mi LED Smart TV 4 (55-inch variant) by Rs 5000.
Xiaomi’s Reason for Price Increase
Xiaomi claims that in order to keep up with the very high demand of the above-mentioned devices in India, they are importing a significant amount of PCBAs. However, in April 2018 government of India has announced a 10% import duty on PCBs and PCBAs (which stands for Printed Circuit Board Assembly). Moreover, import duty has been hiked on other parts, like camera modules and connectors. And as per Xiaomi to cover up the increased cost of production they have to increase the prices.
Updated Pricing of the Devices
The new prices of the Redmi Note 5 Pro and Mi LED Smart TV 4 55” will come into effect from May 1st Xiaomi has mentioned. As mentioned earlier, the Redmi Note 5 Pro will be available for INR 14,999 compared to the original price of INR 13,999. The price increase will affect only the 4 GB RAM and 64 GB ROM variant as there is no mention of price increase of the 6 GB RAM variant from Xiaomi.
Xiaomi has claimed that they are importing a significantly a large number of TVs in India. But due to the recent import tax restructure and depreciation of Rupee they will be increasing the price of the Mi LED Smart TV 4 55-inch by INR 5000. The Mi LED Smart TV 4 will be available for INR 44,999 now compared to the original price of INR 39,999. Both devices will be available on Mi.com, Mi Home, Flipkart and in other offline stores with the new pricing.
Below we have quoted the official post by Xiaomi India. You can also check the official post on Xiaomi’s website as well.
The Actual Post by Xiaomi India
Dear Mi Fans,
As you know, Xiaomi’s pricing philosophy has always been a “cost-plus” model. We strive to make the highest quality products available to all at honest pricing for all of you.
We have been seeing a huge demand for Redmi Note 5 Pro and Mi LED TV 4 55”. In order to ramp up supply for 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 the rupee (by ~5% since the beginning of the year), this has resulted in a significant increase in costs for us.
To ensure the steady supply of Redmi Note 5 Pro, we are marginally increasing the price of Redmi Note 5 Pro 4GB + 64GB variant by INR 1,000 to partly cover the above costs. It would be available at INR 14,999 starting Tuesday, 01 May 2018, on Mi.com, Mi Home stores, Flipkart and other offline stores.
We would be honoring all pre-orders of Redmi Note 5 Pro 4GB + 64GB already placed on Mi.com at the original price of INR 13,999. 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.
In addition, in order to meet the demand of Mi LED TV 4 55”, we are also importing significantly more TVs. Due to the recent import tax structure change and the rupee depreciation this year, we are marginally increasing the price of Mi LED TV 4 55” by INR 5,000 and it will retail at INR 44,999 starting Tuesday, 01 May 2018, across Mi.com, Mi Home stores, and Flipkart.
We are positive that our increased supply will satisfy our customers’ growing demands, bringing more joy to everyone.