If you are planning to buy a smartphone, it would be a good to complete your purchase before June as smartphone prices in India could see a hike in price, it was reported. An increase in the price of memory chips along with the strengthening of China’s official currency could result in a hike in the prices of smartphones, Economic Times reported.
How much will be the increase in smartphone prices?
These two factors may negatively impact smartphone prices and could result in hikes of 10 to 15 per cent, as per the report.
Why will smartphones get expensive?
The report cited market research firm Trendforce which pointed out that there is an increase in prices of DRAM (memory chips) prices as two key suppliers Samsung and Micron will likely implement a price increase starting March. This will have an impact on prices of smartphones.
Quoting an industry executive, the report claimed that the increase in memory prices could be close to 15 per cent which would eventually lead to a hike in smartphone prices overall.
Will reduction of import duty tax help ease the prices?
There will be some relief for customers as the price hike could be balanced out by the recent reduction in import duty tax on mobile phone components. The government reduced import duties on key components used in mobile manufacturing on January 31 before the interim budget. This resulted in the reduction of import duty on various components crucial for mobile manufacturing.
How accurate are these predictions?
These predictions are based on current trends and it remains to be seen if the price hike does take place.
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