Xiaomi Will Not Increase Pricing of its Smartphones Despite Low Margins, Confirms Xiaomi India MD

by Anvinraj Valiyathara 0

Xiaomi had recently unveiled the 55-inch Mi TV 4, Redmi Note 5 and RedmI Note 5 Pro smartphones in India with affordable pricing. Even though Xiaomi has been selling its devices in the country at low cost, some rumors have claimed that the company may raise the pricing of its smartphones. The reason behind it is that many smartphone OEMs have upped the cost of their devices in India after the recent increase in the pricing of components imports in the federal budget. Hence, it is speculated that Xiaomi too will increase the cost of its products in India. But Xiaomi’s Global VP and Managing Director for India, Manu Kumar Jain has said that the company will continue to sell low-priced smartphones in India.

According to Economic Times, Jain said that the company is devising a strategy to ensure that increased import duty on components won’t impact the pricing of its phones in India. He added, “We’re working on a plan which will hopefully ensure that we won’t have to raise prices. Of course, we don’t have the margins but we won’t increase prices,” Jain said.

Manu Kumar Jain Xiaomi

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The reason why the Indian government has increased the import duty on components is that it wants to push its Make in India initiative by urging companies such as Xiaomi to make their devices in India. Jain said that the company is exploring options to manufacture Mi TV in India. However, it is only possible after Mi TV 4 units meet certain threshold. He added the company may work with its existing partners in India or may partner with firms like TCL that make TVs in China. The Indian wing of Foxconn is already making 95 percent of Xiaomi phones in India.