Xiaomi may increase smartphone prices

Xiaomi may increase smartphone prices

Chinese smartphone maker Xiaomi on Thursday said it is likely to increase prices of some of its smartphones sold in the country towards the end of this year.

The decision to increase prices will be taken in a few days if there is no improvement in the exchange value of rupee against the dollar, a top company official said.

“We import a majority of the components used in our handsets. With the exchange value of rupee against the US dollar going down, our costs are going up and our P&L is under pressure. If the rupee goes down further, we may have to increase prices of smartphones in the sub-Rs 10,000 category,” Manu Jain, Managing Director, Xiaomi India told reporters.

Responding to a query, he said though the company has not decided on the exact amount of hike, it would be few hundred rupees.

At the beginning of this year, the company had budgeted for Rs 63 per dollar, while the rupee touched 72 a dollar on Thursday. Xiaomi cannot bear any more loss and may increase the prices of entry-level phones very soon, he said.

Jain also announced the launch of three new phones - Redmi 6, Redmi 6A and Redmi 6 Pro in India. All three phones are upgraded version of previous phones in the entry-level category.

Redmi 6 Pro features an AI dual camera and two-day battery life, while Redmi 6 and Redmi 6A feature the Helio P22 and Helio A22 chipsets, respectively, both of which bring the 12nm process to a new segment. Redmi 6A is the successor to Redmi 5A, ranked as the number one selling smartphone in Q2 2018 continuously for seven months, with more than three million units shipped in Q2 2018, as per IDC.

Redmi 5A was also the bestselling Android phone globally in March 2018 according to Counterpoint Research.