Xiaomi has increased the price of the Redmi Note 5 Pro and the 55-inch Mi LED TV 4 by Rs 1,000 and Rs 5,000 respectively. The reason for the increasing price is to enable the company to ramp up availability of both devices in India.
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The Chinese company has not been able to meet the demand for Redmi Note 5 Pro and the Mi TV 4 in India despite making them locally. To meet the growing demand the company needs to import significant amount of PCBAs in the case of the Redmi Note 5 Pro.
“In order to ramp up supply for Redmi Note 5 Pro, we are importing a significant amount of PCBAs (printed circuit board assemble) as our local PCBA production would only ramp up 100 per cent by third quarter of the calendar year 2018. With the recent changes in tax structure on PCBA imports and the depreciation of the rupee (by 5 per cent since the beginning of the year), this has resulted in a significant increase in costs for us,” the company said in a statement. PCBAs are a critical portion of a smartphone and constitute as much as 50 per cent of the end product.
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Xiaomi has begun local manufacturing of PCBA units in Sriperumbudur, Tamil Nadu, in partnership with Foxconn.