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Many analysts also pointed out, that the Budget also implied a jump of 4-5 percent in importing cost for manufacturers who import handsets into India, which would
cause a direct impact on the consumers. For example, if a phone costs Rs 10,000, the import cost comprises about Rs 6,000 in the total value. Now, the import cost
will be going up by another Rs 360, which will be charged from buyers.
Lava International, which constitutes a fine share in the Indian smartphone market, said in a statement to Economic Times that the change in the duty
will lead to price hike on its devices. We will have to increase prices by say 4-5%, said co-founder and Chairman and Managing Director Hari Om
Rai. We will take a call on the exact increase and since when it will get into effect soon, he added.
Handset makers like Samsung, Lava, Micromax, Intex, Xiaomi and others imported around 64.3 million devices in October-December quarter, according to IDC,
which tracked their record on a quarterly basis.
The conclusion to this hike in the excise duty is that, now the consumers would have to shell out extra money for buying mobiles and tablets. The Union Budget
2015 also caused a similar impact on the mobile phone tariffs, computers and other digital products such as cameras.
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Zara Ali
Zara Ali who loves to explore different beats, right from Technology to Lifestyle. She earned her degree in English Journalism from IIMC (Indian Institute of Mass
Communication). Largely off the beaten path, questions of existence and a dash of humor in everyday life are the excursions that keep her ticking for writing more
and more.
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