Xiaomi has increased the price of the Redmi Note 5 Pro and the Mi TV 4 with 55 inch 4K screen. The Redmi Note 5 Pro will now be priced at Rs. 14,999 and the Mi TV 4 will now come for Rs. 44,999. This is a Rs. 1000 increase on 5 Pro and Rs. 5000 increase on Mi TV 4.
As per Xiaomi they have increased the price due to hike in importing of PCBA, Indian Government has recently imposed 10% tax on PCBA import, plus the rupee depreciation by 5% has forced Xiaomi to increase the price of these products.
To take care of this issue in the future Xiaomi will be ramping up production close to 100% by Q3 2018. So until then the price of Redmi Note 5 Pro and MI TV 4 will not be coming down. Redmi Note 5 Pro is quite popular.
Now Asus Zenfone Max Pro M1 will go on sale on 3rd May and that is seen as a good competition to the Redmi Note 5 Pro. With the price of Redmi Note 5 Pro increasing by Rs. 1000, it is quite natural that most users will opt for Asus Zenfone Max Pro M1.
Xiaomi is known to operate at lower margins and such issues (taxes / rupee deprecations) will force the company to alter the price, now one might think is will Asus be still comfortable with the price of Max Pro M1? are they making profit or… What do you think?