Xiaomi has a clear pricing policy: only a 5% profit. However, it seems that the prices of the company have been increased in India.

The company states that as of April 1, today, the consumption tax of the Indian smartphone industry will increase from 12% to 18%. Hence, they are forced to raise prices.

Price increase for Xiaomi smartphones in India

Now, the tax on a mobile phone will increase by 50% in india. This is compounded by the fact that the exchange rate of the rupee to the US dollar has also fallen sharply.

redmi s2 gold xiaomi

Taking these points into account, there is no other choice but to increase your prices. Earlier, Manu Kumar Jain, Xiaomi’s India boss, said that the increase in excise tax would affect the Indian mobile phone market.

For him, there should be exemptions for models that cost less than Rs 15,000 (around $ 199). However, there is currently no such exemption.

This is the translated Xiaomi statement:

«Dear fans of Mi,

Hope everyone stays safe. We urge you to remain in quarantine and diligently observe the national shutdown. Let’s unite to safeguard the people of our nation.

We would like to share an update regarding the recent GST revisions announced by the Government of India. GST rates on mobile phones have increased by 50% from 12% to 18% as of April 1, 2020. Furthermore, the Indian rupee has depreciated significantly against the US dollar. Since we maintain a profit margin of less than 5% for all of our hardware products, we have no choice but to increase prices.

The new prices will take effect from midnight on April 1, 2020 and will soon be reflected on mi.com.

Our intention is to offer our fans the best products, with the highest specifications, at honest prices. As we strive to continue this effort, we ask for your kind consideration and support.

Please stay safe

Xiaomi India Team »


For now, it appears that it will only affect the Indian market. Hopefully this will not affect any other market like the European one.