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Market insiders said an immediate increase in prices of existing models may be unlikely due to intense competition, but some brands may decide to factor in the rising costs in prices of upcoming models.
On the positive, such currency fluctuations could lead to a further push for Make in India<\/a>.
\"Companies are evaluating price increases between 1% and 2.5%, but not going ahead yet,\" said Pankaj Mohindroo, president of Indian Cellular Association. \"There is a varying impact on different sections of the industry. Sections operating on very thin margins are deeply concerned with the rupee depreciating by nearly 4-5%,\" he said.
Industry insiders said Xiaomi<\/a> has lesser elbow room to absorb the rise in inputs costs due to the rupee fall than its rivals in the top five – Samsung, Oppo, Vivo and Lenovo – since the market leader already operates on wafer thin margins. In fact, Xiaomi had increased prices of Redmi Note 5 Pro and Mi LED TV 4 55-inch by Rs 1,000 and Rs 5,000 respectively, in April owing to rupee depreciation.
The Chinese firm did not comment on the issue as of Friday evening.
For Indian brands like Lava<\/a>, Karbonn<\/a>, Micromax<\/a> and Intex<\/a>, which have rapidly ceded market share to their Chinese rivals and now together hold less than 10% share of the market, the situation is worse — they are being squeezed by the rising input costs but any rise in prices may hurt their market shares even more.
Nidhi Markanday, director at Intex Technologies, admitted that the rupee depreciation will impact input cost.
\"If the rupee value keeps on increasing vis-a-vis the dollar in the coming days, we will be forced to take the unavoidable step of raising our prices and passing the burden on to the consumer,\" she said.
A senior executive at Karbonn Mobiles said, \"Prices may go up by 8-10%, because after (the dollar reached) Rs 63.50 no one changed prices, but now it's difficult to absorb any further.\" The person, who requested not to be named, said the company’s new model scheduled for launch in August will have a higher price than thought earlier.
Navkendar Singh, associate research director at International Data Corporation (IDC) India, said most vendors may not be able to raise prices now because of intense competition, especially in the second half of the year which is more than 60% of the India smartphone market in terms of consumption, mainly due to the festive season in the October-December quarter.
Analysts said handset makers will be forced to focus on assembling more components locally to absorb any future currency fluctuations.
\"We expect acceleration of SMT (surface mounting technology) set ups, so that impact of worsening rupee can be less severe going forward,\" Singh said.
Firms such as Samsung, Xiaomi, Oppo and Lava have started locally assembling printed circuit boards (PCBs), which make up 50% of a smartphone’s making cost, while some others like Vivo and Micromax plan to begin this higher level of manufacturing locally within the next couple of months.
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市场内部人士表示,立即增加现有车型的价格可能不太可能由于激烈的竞争,但一些品牌可以决定因素成本上升的价格即将到来的模型。
从积极的,这样的汇率波动可能导致进一步的推动在印度。
“公司正在评估价格上涨1%至2.5%,但没有继续,“潘卡·莫辛德罗说印度细胞协会主席。“有一个不同的影响这个行业的不同部分。部分操作利润非常薄非常关心卢比贬值了近4 - 5%,”他说。
业内人士表示,小米有较小的肘部空间吸收输入成本由于卢比下降比其竞争对手在前五名,三星、同僚、活体和联想,因为市场领导者已经作用于微薄的利润率。事实上,小米的价格增加了红米注5 Pro和Mi LED电视4分别由Rs 1000和Rs 5000 55寸,4月份由于卢比贬值。
中国公司没有评论周五晚上的问题。
对印度等品牌熔岩,Karbonn,Micromax和国际展览中心,迅速将市场份额拱手让给中国竞争对手,现在一起持有不到10%的市场份额,情况更糟的是,他们被挤压的投入成本上升但任何价格上涨可能伤害了他们的市场份额更大。
怀Markanday、国际展览中心技术主管承认,卢比贬值会影响输入成本。
“如果卢比价值不断增加和美元在未来几天,我们将被迫采取的不可避免的一步提高我们的价格,通过消费者的负担,”她说。
Karbonn手机的高级主管说,“价格可能会上升到8 - 10%,因为(美元)Rs 63.50没有人改变了价格,但是现在很难吸收任何进一步。”The person, who requested not to be named, said the company’s new model scheduled for launch in August will have a higher price than thought earlier.
副研究主管Navkendar辛格国际数据公司(IDC)印度,说现在大多数供应商可能无法提高价格因为激烈的竞争,特别是在今年下半年是超过60%的印度智能手机市场的消费,主要是由于去年第四季度的节日期间。
分析师表示,手机制造商将被迫关注更多的零部件在当地组装来吸收任何未来的汇率波动。
“我们预计加速SMT(表面安装技术),以便卢比恶化的影响不太严重,”辛格说。
公司如三星、小米、同僚和岩浆已经开始在当地组装印刷电路板(pcb),智能手机占50%的成本,而有的人喜欢Vivo和Micromax计划开始这更高级别的本地制造业在未来几个月。
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