Moreover, the stage government trying to level the Value added tax rates and other Tax issues has also made a direct impact to mobile phones manufactures that are from India. One of the major players in India, Karbonn Mobiles has already finding it difficult to maintain the low price tags of mobile phones. Karbonn Mobiles has already decided to increase the price range of mobile phones from 7 to 10 per cent. The decision taken was detailed by executive director of the company, Shashin Devsare. The impact is not just for the Indian player, even players from many other countries such as China is also facing the consequences of dollar price increase. Chinese player which was about to launch their new products into the Indian market has put a halt to the decision for the time being. The company finds that it is not the best time to take such strategic approach as Indian rupee value has fallen against the dollar.
Global brands such as Nokia and Samsung might also be affected but not as much as an Indian mobile brands will. Such huge players hold a strong base and foundation as far as technology is concern, so such brands might not be affected with the import of technology. But, the situation is quite difficult in the case of India player who has to rely on import. More surprisingly there are also global player that are trying to resolve the issue by reducing the specifications of the gadgets. The most appropriate example might be the recently launched Beetel Magiq tablet. Earlier the gadget was of 1 GHz processor which has been reduced to 768 MHz processor.
There are many Indian mobile brands in the nation which are into the production of both cheaper and heavy technology incorporated costly gadgets. While considering the cheaper products, the manufacturers might be able to handle the situation, but as far as high end products such as smartphones and tablets are concern, it's again a crucial time.
However, we need to wait some more time to see what all strategic approach might the Indian mobile phones players might take in the near future to adjust with the situation.