“The rupee has depreciated significantly against the US dollar. Since we maintain less than 5% profit margin for all our hardware products, we have no option other than to increase prices,” Manu Jain, India head at Xiaomi, India’s leading handset maker, said in a note to customers.
Jay Chen, Huawei India CEO, told ET, “We are working on solutions to apply our learnings and experience from China to the current situation in India and help combat Covid-19 with new technology such as remote temperature monitoring.”
Xiaomi’s four factories in Tamil Nadu and Noida will stop production from March 24. The Chinese smartphone maker has eight plants for smartphones, smart TVs and power banks, operated by contract manufacturer partners. Local handset company Lava International has shut its manufacturing facility in Noida, Uttar Pradesh.
Handset makers and mobile retailers said the proposed GST hike on mobile phones is a “counter-intuitive and insensitive” move that will place an additional burden of ₹15,000 crore on the consumers
The decision to hike GST on mobile phones to 18% from 12% was taken at the GST Council meeting chaired by finance minister Nirmala Sitharaman on Saturday. The move was made to correct the inverted duty structure. Handset makers, however, said the rationale of correcting the inverted duty structure by increasing GST is misplaced.
Jio has developed its own 5G and other technologies, to cut costs and reduce dependence on foreign vendors.
Reliance Jio builds in-house 5G, IoT; replaces Nokia, Oracle tech to reduce dependence on foreign gear
The Mukesh Ambani-owned company has replaced Nokia’s and Oracle’s 4G voice technology with its own, a senior company executive said. The move is perhaps a global first, analysts said, where a mobile phone company has developed in-house technology to replace third-party equipment vendors.
Chinese premium smartphone maker OnePlus will establish a fifth-generation (5G) technology lab in India after doubling its R&D employee base here to 600 this year. OnePlus’ Hyderabad research and development centre already helps support 5G smartphones that it makes in India for the North American market.
Huawei is building alternatives to Google’s service suite called Google Mobile Services (GMS) since there is uncertainty on the use of GMS on the Chinese firm’s phones following restrictions announced by the US government earlier this year. GMS includes Gmail, You-Tube, Navigation, Google Drive and Maps.
Chinese smartphone maker Oppo expects the Covid-19 supply chain disruption to end in a week or two. It is also planning to open a 5G lab in Hyderabad.
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