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Xiaomi has hiked the prices of its Redmi Note 5 Pro smartphone and the Mi LED TV 4. The company confirmed this in a post on Twitter. Xiaomi India head Manu Kumar Jain tweeted out a detailed note explaining that the company was increasing prices of these products due to a hike in the PCBA import duty. Redmi Note 5 Pro will now start at Rs 14,999, which is an increase of Rs 1000 from its original launch price. This new price is for the 4GB RAM and 64GB storage variant.
Coming to the Mi LED TV 4, which comes in 55-inches size, the price of this will be increased by Rs 5000, said the company. The Mi LED TV 4, which has a 4K HDR display, will now cost Rs 44,999, compared to the earlier launch price of Rs 39,999. In the note, Xiaomi says they have seen a huge demand for the Redmi Note 5 Pro and the Mi LED TV 4 in 55-inches.
The letter says, “In order to ramp up supply for Redmi Note 5 Pro, we are importing a significant amount of PCBAs as our local PCBA production would only ramp up 100% by CY Q3 2018. With the recent changes in tax structure on PCBA imports and the depreciation of the rupee (by 5% since the beginning of the year), this has resulted in a significant increase in costs for us.” In April 2018, the government announced a 10% duty on imports of PCBs or PCBA, which stands for Printed Circuit Board Assembly. The government has also increased import duty on other parts like camera modules, connectors, etc.
Also read: #ieDecode: Xiaomi ramping up production for Redmi Note 5 Pro, says Manu Jain
Xiaomi claims that in order to ensure a steady supply for the Redmi Note 5 Pro, they have to increase the prices to cover the costs. While Redmi Note 5 Pro phones are ‘Made in India’, most of the parts are still being imported from China. In India, most manufacturers are still doing final assembly of their smartphone with actual parts being manufactured in China.
Xiaomi says the new prices for the Redmi Note 5 Pro will come into effect from May 1 on Mi.com, Mi Home stores, Flipkart and in order offline stores. As pointed out, the Redmi Note 5 Pro will now cost Rs 14,999 compared to the original launch price of Rs 13,999. This is for the 4GB RAM and 64GB storage variant. Xiaomi has not confirmed a price increase for 6GB RAM version, which costs Rs 16,999.
Read more: Xiaomi Redmi Note 5 Pro review: Faster performance coupled with better cameras
The company also says that all those who had pre-ordered the smartphone at Mi.com will still get it at Rs 13,999 and will not have to pay extra. The note from Xiaomi India says, ” We would be honouring all pre-orders of Redmi Note 5 Pro 4GB + 64GB already placed on Mi.com at the original price of INR 13,999.” The company has also said it hopes to do a monthly volume of one million Redmi Note 5 Pro phones in India thanks to increase in manufacturing.
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Coming to the Mi LED TV 4 in 55-inches, the company is hiking the price by Rs 5000. Xiaomi says they are importing significantly more TVs, but the recent import tax structure change and the rupee depreciation, means they will have to increase prices. The new price of Rs 44,999 for the Mi LED TV 4 will go on into effect from May 1, 2018. The new price will be valid on Mi.com, Mi Home stores, and Flipkart from the given date.
