DHAKA: Prices of mobile phones, laptops, TV sets and printers are set for a second hike in as many months as the rupee has upped costs for companies 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.

“There are certain companies who are trying to reduce, or delay, purchases,” he also 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.

MD of Panasonic India Manish Sharma said, “It (rupee fall) might lead to the company increasing prices by 5-7% within a few days if the condition remains the same.”

Sony is also mulling a hike between 4% and 6% to factor in higher costs.

HP’s Srivastava too admitted that the dearer prices were likely to impact the company’s overall business.

Source: TOI
BDST: 0846 HRS, AUG 27, 2013
SR/RS/GCP