With reference to the 6% tax hike on all mobile phones above Rs 2000 announced in the Union budget 2013 – 2014 today, please find below the comment from Mr T M Ramakrishnan, CEO-Devices, S Mobility Ltd on the same.

“The handsets industry is facing difficult times with increased competition and price wars at large. With the proposed increase in tax for handsets above Rs.2,000, we do not see a decrease in demand but definitely, there will be pressure on the margins. This decision will surely impact the industry’s focus on making smartphones more affordable. At the same time, rural areas might get that much more difficult for smartphones to penetrate.”