With the new GST bill, it is now expected that the smartphone prices can go up by 7-8 percent. If you don’t know what GST is, it is the Goods and Service Tax, and it is the biggest reform in India’s indirect tax structure since the economy began to be opened up 25 years ago. This is directly going to affect consumers in many different ways. On the same lines, it is also expected that smartphone may see an increase in prices up to 7-8 percent as mentioned earlier.
According to Coolpad India CEO, these prices will go up depending on the rate of GST. While the new GST rates are not announced yet, but already this matter is of concern to most of the handset makers. It is expected that the regime may result at an end of concessions currently being offered by different states. But on a positive side, it is also expected that it will lead to significant improvement in online sales of the mobile phones.
The online sales have been slowed down for the last 2-3 months due to the additional taxes levied by certain states. However, it is still a matter of concern for many. Coolpad has also reduced its annual sales target to 2.5-3 million units, which was initially expected to be around 4 million. The same was reported by the CEO of Coolpad.
The company also recently launched a new smartphone called the Coolpad Mega 2.5D which is exclusively going to be sold via Amazon India in the country. It is also reported that the company is working with Amazon India to supply the products to the retailers. This could help the company significantly with offline sales. The same has been initiated last month.
With growing competition from the Chinese manufacturers like Huawei, Oppo, etc. it is going to interesting to see how things follow-up in coming months. But talking about GST, let’s just hope it is not going to make much of a difference since already smartphone prices are too high in India when it comes to some of the flagship smartphones. Also note that major manufacturers including Apple have promised to make their smartphones in India. So if that successfully happens then, all this can cut down a lot of costs as well. We hope that’s the case since the smartphone prices are already touching the skies. Recently, Samsung also launched the new Galaxy Note 7 in India, which is priced higher than other countries. Stay tuned for info on this.