Mobiles, TVs to cost even more on rupee fall

shreymittal

shreymittal

Being Human
NEW DELHI: If you have been planning to buy a new smartphone or upgrade to a bigger TV before Diwali, now may not be the best time to go ahead. Prices of mobile phones, laptops, TV sets and printers are set for a second hike in as many months as the dearer rupee has upped costs for companies, forcing them to revise rates just ahead of the crucial festive season,

Companies said the pressure from a depreciating rupee refuses to ease and uncertainty persists over the currency's performance against the dollar in the near future. The rupee has slipped 14.5% against the dollar so far this year and fell to a record low of 65.56 last week.

Coming in the midst of a slowdown, the hike in electronic goods is expected to further dampen sentiment among buyers already shying away from new purchases on account of sluggish growth and high interest rates.

Printer and computer major HP will be hiking prices by as much as 8%, and this revision comes after a similar hike in July. "We have no other option, and will be increasing prices immediately," HP India president (printing and personal systems) Rajiv Srivastava told TOI.

Around half the products HP sells in India are imported, while many of the locally-made ones also contain parts procured from overseas. Srivastava said the effect of increased prices is already telling on the market. "There are certain companies who are trying to reduce, or delay, purchases," he said.

Electronics and mobile phone giant Samsung, which had hiked prices by 2-3% last month to factor in the weaker rupee, is also undertaking a fresh revision in select products. Prices of some of its mobile phones and tablets are up by 3-5% again. "We have been compelled to increase prices of some mobiles and tablets to manage the impact of the sharp rupee depreciation on our input costs," said Vineet Taneja, country head of Samsung's mobile & IT division.

Panasonic, Japanese maker of consumer appliances and televisions, is set to raise prices as well. "Panasonic is keenly observing the rupee movement and the quantum of the price hike will depend on the ( forex) situation which has created an imbalance in the market. It ( rupee fall) might lead to the company increasing prices by 5-7% within a few days if the condition remains the same," said Manish Sharma, MD of Panasonic India.

The company is looking at increased B2B (business-to-business) sales as well as higher local content on products to protect margins.

Sony is mulling a hike between 4% and 6% to factor in higher costs. "The rupee is hitting costs, and we have no option but to increase prices," said Sunil Nayyar, sales head for Sony India. Sony does not manufacture in India and imports all its products here.

Nayyar admitted that the timing of the hike was not good as the market was already under pressure. "There is a slowdown in the industry, though Sony continues to grow."

Companies fear that the fresh round of price hikes will further slow down demand, which is not good news as most have been banking on the upcoming festive season to revive fortunes. "There might be a marginal impact on industry sales due to such measures," Nayyar said.

HP's Srivastava too admitted that the dearer prices were likely to impact the company's overall business.
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Rupee plunges again, opens at 65.22 vs US dollar
Now its 65.70 vs US dollar
Source
 
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sujoyp

sujoyp

Grand Master
oooh no...not TV or handset but I was planning for a new DSLR .....prices of imported goods will increase
 
Hrishi

Hrishi

******************
shreymittal said:
Govt to increase prices of Petrol by 10Rs/L and diesel by 5rs/L
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Where did you get that information from , or is that just your specualtion ?

This is the right time for dumping black money for th'm!! Ensuring maximum profits.
 
GhorMaanas

GhorMaanas

The Vagrant Seeker
Venugopal Dhoot said that these are trying times, and people shouldn't just rely on the govt. (which in the first place itself is inept!), but actively co-operate too, and practice little restraint for some time, by saving their money and not unnecessarily splurging on buying gold, and importing TVs, phones and such consumer electronic-goods, which can be kept on hold for purchase later on, as high imports against low exports is one major factor behind the limping economy. when the govt. is not keen on supporting manufacture and exports, somehow by any way possible controlling our imports becomes all the more crucial!! ;)
 
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