Smartphone Prices To Witness A Price Hike Soon!

On 1st October, 2020, Government of India imposed an additional 10% duty on imported display and touch panels. This is a strategic move to promote and strengthen production in the country, smartphone prices would increase around 1.5 - 5% in upcoming days.

"In a rare miss, the industry could not ramp up display assembly production adequately because of COVID-19 and NGT embargo. We continue to be fully committed to domestic manufacturing of sub-assemblies and components. However, now, the focus is to take a lion's share of global markets and not just import substitution." ~ Indian Cellular and Electronics Association (ICEA) National Chairman Pankaj Mohindroo.

Manufacturers like Samsung, Xiaomi, Vivo, Oppo and even OnePlus are importing a significant portion of their display panels. Levying an additional duty is a step taken under phased-manufacturing-program, specifically designed for smartphone industry in the country. It also strengthens the "Atma Nirbhar Bharat" campaign.

Is This A Risk Worth Taking Prior to the Festive Season?

Even more thought shall be put into the fact that the festive season of our country is round the corner. Every year, e-commerce giants like Flipkart and Amazon make record sales, a major chunk of which is dominated by smartphones and other electronic devices. An increase in price would decrease the discount margin that manufacturers hold.

Some companies already witnessed a price hike in the month of July, 2020, a further increase in price would definitely affect the sales. Nevertheless, there is a possibility that companies absorb the hike to maintain sales.