A smartphone that costs less than Rs 2,000? Forget it for now!
With the coalition government making big bets on cashless deals to break the growing black money, it is trying to attract mobile phone manufacturers to launch smartphones that cost less than Rs 2,000, so that more consumers pay online.
At a recent meeting of NITI Aayog,
Tank has asked mobile phone manufacturers such as Micromax, Intex, Lava and Karbonn to launch cheaper phones.
However, industry executives say the cost of making smartphones is still far above the threshold.
Most of the key components that make smartphones are imported, so it is impossible to reduce the price of mobile phones to a certain level.
The price of a smartphone depends on its size and functionality.
On average, printed circuit board components (PCBA), which are the core of smart devices, account for more than 54 of the cost of manufacturing mobile phones.
Other key components such as display screens, rear cameras, batteries and chargers account for more than 28 of smartphones.
All in all, these five key components are indispensable for any smartphone, and even for a limited budget of 3g, the cost is over Rs 2,000enabled 3. 5-
The manufacturing cost is 2,500 rupees.
Operating systems (OS) and other patented applications have further increased costs by at least Rs 500.
With the government\'s willingness to promote smartphones expected to have scanners, security features and software, the cost could well exceed Rs 3,500.
According to Vikash Aggarwal, chairman and general manager of M-, an Indian mobile phone company
4g technology mobile phone
Higher cost for enabled phones.
\"Next generation 4g lte smartphone
The price of Rs 2,000 is still in the development stage.
The industry is also trying to purchase 4G-
\"Enabled feature phones can help increase online transactions,\" he said . \".
According to industry experts, only when the connectivity of telecom services is improved and technology is faster, digital transactions through smartphones can become popular at the public level --
Supported phones such as 4g lte are affordable.
Growth in smartphone sales has been sluggish in the past few quarters, and sales of feature phones are still high, contrary to analysts\' expectations.
The rise in smartphone (3G and 4G) prices is a key factor in making it impossible for new consumers to buy.
Although since 2014, as the government has begun to encourage manufacturers to assemble equipment locally, the assembly of mobile phones has accelerated, all key components continue to be imported from China, value of Taiwan, Vietnam and local
In addition, this proportion is still very low. Local value-
For example, the addition in PCBA is 2%, which is zero for display panels and cameras. Value-
India has started adding parts such as the battery (8 cents), the Charger (6 cents) and the Housing (18 cents ). Poor value-
Increasing means greater reliance on imports.
\"Since the components are imported, we don\'t have much control over their prices.
So at the moment we have very little control over the cost of smartphones, \"said an executive at a top handset maker.
At present, the industry is considering changing the price of parts in China, which is expected to happen in the next few months.
Market competition has put pressure on the company\'s profit margin, and for them at the moment, any further price cuts are not feasible.
Companies are lobbying for more tax policies and benefits.
After the GST comes into effect, the benefits they receive will be canceled because of the value
The increase is still very low.
According to Saeed Tajudin, chief executive of Coolpad India, once the goods and services tax comes into effect, the price of mobile phones sold online may rise by eight per cent.
According to senior executives of major smartphones
Manufacturing companies, in the current situation, if the government purchases a lot from private players and distributes mobile phones after subsidies, the move could be successful, as in light companies
Light emitting diode bulb
However, a similar move in the tablet sector failed to launch the Akash tablet at Rs 4,000, which did not gain much popularity among consumers.
\"They should try to promote feature phones that are cheaper and able to trade via text messages,\" another industry veteran said . \".