Prices of many electronic goods including smartphones and smart television sets have increased since July 1. The price rise has been confirmed by electronic manufacturers operating in the country, including some Chinese firms.
The companies said the price rise will be seen across affordable product categories including 4G smartphones and smart TVs. Several electronic goods manufacturers have increased prices including Xiaomi, Realme and Oppo.
The companies said they were forced to increase prices of some affordable products due to disruptions and shortages in supply chain shortages, higher input costs and fluctuating demand.
Industry executives quoted in a livemint.com report said the price of smartphones could go up by Rs 100 to Rs 1,000, depending on the product.
Xiaomi expects a 3-6 per cent increase in prices of smart TVs from July 1. Oppo has announced a price hike of Rs 500-Rs 1,000 for Oppo A11, A15s, A53 models. Meanwhile, Realme’s site suggests that the company has increased the prices of its C11, C20 and C25 models by Rs 200 to Rs 500.
The price correction will affect all affordable products including 4g smartphones, according to an industry executive quoted in the livemint.com report. The person said that the bill of materials (BOM) cost of smartphones will increase across the industry.
However, flagship phones from Apple and Samsung may not be affected.
According to Prachir Singh, senior research analyst, at Counterpoint Research, the price hike was expected for a while. “Component shortage hasn’t just been increasing for the India market, but globally as well," he said.
The main reason why electronic goods manufacturers are increasing prices of products like smartphones and smart TVs is supply chain disruptions.
Shortages in supply of key components — chipsets, display panels, display driver, back panels, battery— seems to be the biggest reason behind the price hike. The input costs incurred by companies towards making smartphones and TVs have increased due to the demand-supply mismatch witnessed over the last year due to the pandemic.
The global shortage in semiconductors since the Covid-led lockdown was lifted last year, is expected to continue well into 2022.
Prices of smartphones and smart TVs are also going up due to higher transportation and shipping charges. The companies have attempted to absorb most of the additional costs but added that prices of some products had to be hiked in view of the situation.