Smartphone prices could go up to 8% after GST
NEW DELHI: Mobile phones could become dearer by 7-8% after the GST comes into effect, Chinese handset maker Coolpad said today.
"Depending on the rate of GST, prices could go up 7-8%," Coolpad India CEO Syed Tajuddin told PTI.
While the GST rates are yet to be announced, handset makers are concerned that the regime may result in concessions currently offered by different states coming to an end.
However, Tajuddin said GST will result in a "big jump" in online sales of mobile phones that have slowed down in the last 2-3 months on account of additional taxes levied by certain states.
The company has reduced its sales target for the year from 4 million to about 2.5-3 million units.
"In the last 2-3 months, online sales of mobile phones have slowed down a bit on account of additional taxes by certain states. We now expect to see sales to be about 2.5-3 million units this year (by March)," he said.
Coolpad also plans to launch three new devices, priced under Rs 15,000, in the coming months to push sales in India, which is among the fastest growing smartphone markets globally.
Smartphone prices could go up to 8% after GST: Coolpad India CEO