Prices for consumer electronics such as air conditioners, refrigerators, washing machines, televisions and smartphones are expected to rise again by the end of April, marking the third round of increases in four months amid continuing cost pressures on key inputs.High prices of crude oil-linked derivatives such as plastics, coupled with a sharp rise in memory chip costs and currency-related pressures, are forcing manufacturers to pass on higher costs to consumers, industry executives said, citing ET.Electronics retailers and manufacturers are anticipating another wave of increases, with appliances and TVs likely to become 5 to 7 percent more expensive, smartphones 10 to 15 percent, and laptops 8 to 10 percent more expensive, according to industry estimates.“The recent movement in prices will mean one of the steepest rounds of increases in recent years,” said the CEO of a leading national electronics retail chain, adding that repeated hikes could lead to demand strain.Manufacturers have already implemented multiple rounds of price increases in recent months. Air conditioner maker Blue Star said it may raise prices again after a recent 6 percent increase, citing continued pressure in input costs.
“Prices of crude oil-linked derivatives such as plastics remain high. If demand strengthens in the summer, the next round of increases could come as early as next week,” said P Thiagarajan, managing director of Blue Star.Haier India also flagged a 4-7 per cent price hike across product categories from April 21, while TV makers are pushing for similar increases in the near term.The latest increases follow earlier rounds in January and February driven by higher input costs, a weaker currency, and revised energy efficiency standards for air conditioners, followed by another round in March and April due to higher shipping costs and geopolitical unrest affecting crude oil-related inputs.In the electronics sector, a shortage of memory chips and strong demand from artificial intelligence applications have increased costs, especially for smartphones and laptops. Analysts expect continued pressure on the smartphone market in the near term, with weak entry-level demand and rising component costs weighing on volumes.The inflationary trend is also extending to consumer goods of daily use, with companies raising prices of soap and detergents due to rising costs of raw materials such as palm oil and crude oil-related inputs such as polypropylene and linear alkyl benzene.Some FMCG companies are also reducing pack sizes rather than increasing prices, as cost pressures persist in packaging, energy and logistics.
