If you missed out on the latest round of Amazon and Flipkart sales that concluded last week, and want to buy a smartphone now, perhaps you might want to wait a tad longer.
According to a report by ET, manufacturers might soon offer more such discounts on the onset of GST (Goods and Service Tax) roll out to clear their inventories, since the price of Smartphones might increase once the GST rollout beings on July 1, 2017.
Last week, the tax on ‘telephones for cellular networks and parts for their manufacture’ was set to 12 percent by council deciding new tax rates. Which implies that once the GST rollout commences, smartphones will be 4 to 5 percent more expensive and naturally retails wouldn’t want to hold on to stocks that are likely to cost more in coming weeks.
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Counterpoint research expects up to 10 percent price cut on phones by the end of June 2017. Smartphone manufacturers who aren’t doing good are more likely to offer subsidies in order to increase their market share. According to the report, brands have already started pushing stocks to distributors, who are reluctant to except due to the uncertainty associated with the GST.
“June will be dry in terms of sell-throughs (sales to customers) and if price increase happens in July, discounts may be offered by brands starting mid-June till the month end, such that the old stock is cleared before models with increased prices start coming in,” said Navkendar Singh, senior analyst at International Data Corporation (IDC) India.
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Unless it’s urgent, you could put off buying your new smartphone for the next 2 to three weeks. A surge in Smartphone discounts is expected around mid of June next month.
