Realme smartphones get costly after GST hike

Joanna Estrada
April 1, 2020

As evident from the tweet, the OPPO handsets affected by the price hike include the like of the OPPO Reno3 Pro and the OPPO F15 - both of which were launched just a few weeks ago.

It was coming, and now finally on April 1st smartphone companies have started to increase the prices of the smartphones because the goods and services tax (GST) on mobile phones was hiked from 12% to 18% in India in March.

- The price of the base model of iPhone 11 has increased from Rs 64,900 to Rs 68,300.

Oppo has also chose to increase the price of their smartphones, to accommodate the new increased GST of 18%. The ICEA had said the mobile phone industry is under stress because of disruption in the supply chain due to Covid-19 and the increase in GST would "devastate" the sector.

Realme X2 (4GB+64GB) which was priced at Rs 16,999 will now cost Rs 17,999 - a price hike of Rs 1,000. The Oppo K1 now sells for Rs 15,990, which is Rs 1,000 above the earlier pricing of Rs 14,990.

Apart from this, Samsung Galaxy S10 Lite (8GB RAM) will now be available for Rs 42,142, Galaxy S10e (128 GB) for Rs 47,300, Galaxy S10 (128GB) for Rs 58,800 and Galaxy S10 + 67,200.

The Oppo Reno 2F and Reno 2Z smartphones will now be available at Rs 23,490 and Rs 27,490, respectively. Similarly, the retail price of the Galaxy S20+ has been increased by Rs 3,901.

The iPhone 7 (32GB) which was earlier priced at Rs 29,900, is now priced at Rs 31,500. At this point in time, we can't confirm whether the lockdown will be extended or not.

The company revealed that they maintain less than 5 percent profit margin for their hardware products, which includes smartphones.

Soon after the announcement from the GST Council, Manu Kumar Jain, Xiaomi India MD and Global Vice President, took to Twitter to oppose the move from the government and said that the GST increase will crumble the smartphone industry which is already struggling with profitability.

Meanwhile, Realme has also increased its prices, even though earlier reports suggested that the company planned to absorb the new GST cost and not increase the prices of its existing smartphones.

Other reports by Click Lancashire

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