Smartphone to turn dearer as stocks run out amid virus worries in China
- Smartphone prices may go up by 6-7%, while that of feature phones may increase 10% over the next 20 days, say analysts
- Premium smartphone won’t be hurt as much as their demand is already low in India
Smartphone prices are set to rise in India as early as over the next fortnight as retailers and stockists run out of stocks following China’s shutdown of a large number of factories due to the coronavirus outbreak.
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Finance Minister Nirmala Sitharaman: It was decided to raise the GST rate on mobile phones and specific parts, presently attracting 12% GST, to be taxed at 18%. pic.twitter.com/RnSoRN9sKl
— ANI (@ANI) March 14, 2020
The indefinite closure of factories has disrupted supplies to India, where Chinese phones command the biggest share of the market. Industry stakeholders expect the reduced stocks to impact prices of affordable smartphones and feature phones the most.
The coronavirus outbreak has so far claimed more than 1,500 lives and infected over 42,000 people worldwide. While the outbreak started in China’s Wuhan region, cases have been found in other countries, including India. China’s supplies of electronic goods and products comprise one of the biggest share of trade with India.
