Computer makers to raise prices by month-end

S. Ronendra Singh New Delhi | Updated on November 16, 2017


Say unfavourable forex movement adds to high excise duty and input costs

End of May will see personal computers — notebook, netbooks and desktops — getting expensive by almost 10 per cent.

Weakening rupee against dollar is leading major personal computer manufacturers in India to increase prices of their products.

Companies such as Acer India, Hewlett Packard (HP) India and Dell India are facing the reality of rupee depreciation, which they think would continue at this level of Rs 54-56 against the dollar for at least next few months.

The players felt information technology hardware market's margin is already driven by various factors such as excise duty and input costs. If forex movements also come into play at steep level since beginning this month, it would have to be passed on to the customers.

“We are looking at 8-10 per cent of price increase, depending on the products category, by end of this month,” Mr Vinay Awasthi, Senior Director — Product and Marketing, Personal Systems Group, HP India, told Business Line.

However, 8-10 per cent might be more than what has been earlier for the industry level of around 5-7 per cent.

“But, rupee has been depreciating against the dollar from Rs 45-47 few months back to what is now, and that is the reality,” Mr S. Rajendran, Chief Marketing Officer, Acer India, said.

Therefore, by and large, the increase in products cost will happen before end of this month, though demand from consumers are not yet down, he said.

Dell India said it was too early to be able to determine specific price increases, but it would happen for sure. “Since most of the components are imported, it is reasonable to assume that with dollar appreciation, rupee prices will increase by similar amounts,” Mr Mahesh Bhalla, Executive Director and General Manager — Consumer and Small and Medium Business, Dell India, said.

“This is a catch-22 situation because of rupee devaluation. Under the current situation if the prices are not increased it will adversely affect the companies expansion plans and further investment,” Mr Alok Bhardwaj, President, Manufacturers Association for IT India, said.

Published on May 21, 2012

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