CEO: India should hold off new tariffs to keep OnePlus 5 pricing stable
OnePlus CEO Peter Lau wants the Indian government to put off a planned imports tariff on electronics.
Speaking with the India Times, Lau said that the company wants a year’s space before the customs tax is put on to make room for stable OnePlus 5 pricing throughout its product cycle.
“Because our product cycle is relatively long, we cannot sell this product for some months and then increase the price – it is unfair to consumers and bad customer experience,” Lau said.
The company decided to raise the price of the OnePlus One while it was still on sale in Europe back when the Euro had crashed against the Dollar.
Prime Minister Narendra Modi is interested in protecting companies that have engaged in his “Make in India” campaign — planting factories in the country and increasing local manufacturing output and jobs — such as Foxconn, Wistron and Samsung.
OnePlus is one of the few phone manufacturers that opt to import its new products. Lau said that new products require a huge stock build-up before first sales, something that isn’t feasible for the OnePlus 5.
“To meet the requirement for quality, the efficiency here is not as expected, so for launch, imports may be higher,” Lau said.
Apple has been looking for a reprieve on the tax burden to bring in refurbished iPhones for retail in the subcontinent, but has not gotten any. It’s still contracting parts and assembly to manufacturers in India for iPhone SE units for India.