Will Xiaomi Redmi Note 5 Pro's price hike affect sales in India?

Xiaomi has hiked the prices of two of its best-selling products in India, Mi TV 4 (55) and Redmi Note 5 Pro, as it is being forced to import PCBAs to cope with demand.

Xiaomi Redmi Note 5 Pro as seen on its official websiteXiaomi (Mi)

Xiaomi Redmi Note 5 Pro is one of the best-selling budget smartphones in India, and it has been in popular demand ever since its launch earlier this year. Due to an overwhelming demand, the handset is being sold in flash sales and making it hard for potential buyers to successfully purchase it.

As infuriating as the flash sales can get while purchasing a good budget smartphone, buyers can still get value for the time and money spent in the process. But Xiaomi India MD Manu Kumar Jain came bearing some good and bad news for potential buyers of the Redmi Note 5 Pro.

Let's start with the good news. In a tweet, Jain mentioned that Xiaomi is ramping up supply for the Redmi Note 5 Pro by importing a significant amount of PCBAs (Printed Circuit Board Assembly). Could this mean an end of flash sales for the Redmi Note 5 Pro? It certainly looks like it.

But wait till you see the downside. Since the Chinese smartphone maker can only ramp up local production of PCBAs only by CY Q3 2018, relying on imports will cost the company due to the recent changes in the tax structure. Besides, the 5 percent rupee depreciation since the beginning of 2018 adds to the increase in costs for the company.

Xiaomi Redmi Note 5 Pro on Mi.comMi.com/in

As a way to counter these excess costs, Xiaomi decided to hike the Redmi Note 5 Pro's price in India by Rs 1,000. The handset, which is currently priced at Rs 13,999, will start retailing at Rs 14,999 from May 1. The new price will reflect in all sales channels, including Flipkart, Mi.com, Mi Home stores and other offline stores.

Mi fans! In order to ramp up supply for #RedmiNote5Pro & #MiTV4 (55), we're marginally increasing the prices. This is because of the recent changes in PCBA import taxes & INR depreciation.

This will help us bring more units to all of you!

Read more: https://t.co/T6aykphV0q pic.twitter.com/3NrgS4sxFd
— Manu Kumar Jain (@manukumarjain) April 30, 2018

It's not clear whether or not the price hike is going to affect the Redmi Note 5 Pro's sales in India, but it will surely give customers a chance to buy the handset more freely as the company overcomes the demand.

"We hope that with the substantial increase in the manufacturing capacity, we would be able to do a monthly volume of one million Redmi Note 5 Pro," Jain said.

If you've already pre-ordered the Redmi Note 5 Pro on Mi.com for Rs 13,999, Jain promises that the company will honor that price.

As the full statement on the price hike revealed, Xiaomi is also increasing the price of its Mi LED TV 4 (55). The smart television is currently priced at Rs 39,999, but it will start retailing at Rs 44,999 starting Tuesday. This marks a significant Rs 5,000 hike.