HomeNewsRealme increases smartphone prices due to GST hike

Realme increases smartphone prices due to GST hike

Realme said that the recent COVID-19 pandemic has highly impacted the smartphone industry, leading to a price hike of components and supply shortage.

After Xiaomi and Oppo, Realme has also announced that it has increased the price of its smartphones in the following the Indian government’s move. The Government of India recently decided to increase the GST on smartphones from 12% to 18% starting April 1, 2020.

In a press statement, Realme said that 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.

The company states that Realme smartphones will have to boost the prices up for the first time since 2018. It says “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.”

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.”

He further mentioned, “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.”

Realme 6 price will now start at Rs 13,999 which is up from Rs 12,999. Realme 6 Pro price has also been increased by Rs 1,000. The starting price is now Rs 17,999 up from Rs 16,999.

Realme 5i now starts at Rs 9,999 up from Rs 8,999. Realme X2 is now priced at Rs 17,999 starting which is Rs 1,000 up from Rs 16,999.

Realme X2 Pro will 6GB, 8GB, 12GB models will be available at Rs 29,999, Rs 31,999 and Rs 35,999 as against to their earlier pricing of Rs Rs 27,999, 29,999 and Rs 31,999.

Realme 5 Pro will now retail at starting Rs 13,999 in India, which is Rs 1,000 above the earlier pricing of Rs 12,999.

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