We recently reported on how Xiaomi is planning to increase the pricing of some of its phones in India. Now, Xiaomi took to Twitter to announce the price hike for the Redmi 6 and the Redmi 6A smartphones alongside Mi TV 4C Pro and 4A Pro. The company also revealed that the reason behind the sudden move is because of the depreciation of Indian currency against the USD.
Redmi 6, Redmi 6A, Mi TV 4C, Mi TV 4A Pro Revised Price in India
As per the latest tweet by Xiaomi, it has ‘marginally adjusted’ the pricing of select devices. These new prices will be effective starting November 11, 2018.
The Redmi 6A (2GB RAM+16GB/32GB Storage) variants will get a slight price hike of INR 500 and INR 600, respectively. According to the increase, the revised pricing of both the Redmi 6A variants come to INR 6,599 (2GB +16GB) and INR 7,499 (2GB + 32GB). The Redmi 6 (3GB RAM + 32GB Storage) variant price in India has been increased by INR 500, with the final pricing as INR 8,499.
Similarly, the Mi TV 4C Pro (32-inch) and Mi LED TV 4A Pro (49-inch) price in India has been increased by INR 1,000 and INR 2,000, respectively. The Mi TV 4C will now be available at INR 15,999 while the Mi LED TV 4A will retail at INR 31,999.
The Mi Power Bank 2i Black 10,000mAh will get a price hike of INR 100, with the retail price coming to INR 899.
Mi Fans, we have an important update regarding Mi Powerbank 2i, Mi TV, and Redmi 6 & 6A. pic.twitter.com/apwZgycHwE
— Mi India (@XiaomiIndia) November 10, 2018
The Falling Value of INR Casting A Spell on Xiaomi’s Net Profit
The depreciation of INR against the USD resulted in a decrease of Xiaomi’s net profit. Citing the falling value of INR, the company had no other choice than increasing the current pricing of its devices in India. Although manufacturing in India helps the company in launching phones at lower introductory prices, the amount spent on components that are purchased from Japan, Taiwan, and the US in dollars take a plunge. The company buys components in dollars, which directly casts an impact on the net profit. The Redmi 6 and Redmi 6A phones had been launched at low introductory prices, which is why Xiaomi primarily took the call on increasing their selling price first.
Currently, the rupee stands meekly at 72.48 against the dollar due to dollar-buying by importers and banks. Not just INR, the dollar has risen against other currencies too. Although the US-China trade conflict is a lingering issue, the USD has somehow managed to stand tall.
Xiaomi’s Fixed Profit Margin, Impact on Product Pricing
Xiaomi has always marketed itself as a consumer-first company, projecting that unlike other OEMs, it does not run behind profits. It recently announced that it would fix its net profit margin to a maximum 5 percent, which means that in case of currency fall, the only resort left for the company would be to increase the pricing of a product. Other companies keep their profits variable that helps them in case of market fluctuation, but now that Xiaomi has fixed its profit, it will always be resorting to increasing the price of its product whenever the market turns grim.
To recall, Xiaomi launched the Redmi 6, Redmi 6A and Redmi 6 Pro back in September 2018. The phones were priced between INR 5,999 to INR 12,999, with the Redmi 6 Pro costing highest. Falling under the most competitive price segment in India, all the phones were an instant hit in the market. Now that Xiaomi has increased the pricing, it remains to be seen whether it will have any impact on the overall sale graph for the Redmi 6 series.