However, its fellow Chinese handset maker and closest competitor in India, Vivo India, said it will not immediately increase prices of its smartphones and will absorb the temporary component cost fluctuation.
Xiaomi India said the price hike is only applicable to the Redmi Note 8 4GB + 64GB model. It has increased the price to Rs 10,499 from Rs 9,999.
“While we are working to explore alternative supply channels for components and raw materials, the immediate impact is that the short supply might cause some negative pressure on prices of these components. This has led to an increase in the price of the product temporarily. We apologize for the inconvenience,” Xiaomi India said in a statement on Thursday.
Vivo India’s director, brand strategy, Nipun Marya, told ET, “We continue to keep consumer satisfaction at the core of all our operations. Even in the past, we have borne the cost due to a change in duty, inflation, policy changes, etc, and shall continue to do so as much as possible.”
ET had reported on Thursday that local production of handsets might come to a complete halt from next week in the absence of supplies from China.
“If there is pressure on components, then there is an increase in production cost, and it can have an impact on the prices of certain products in India. At the same time, companies will delay new product launches since they won’t have supplies for production,” said Tarun Pathak, associate director at Counterpoint Research.