Kamal Ghorui
Prices of consumer electronics such as air conditioners, refrigerators, washing machines, televisions and smartphones are set to rise again by the end of April, marking the third round of increases in four months amid sustained cost pressures on key inputs.Industry executives, cited by ET, said elevated prices of crude-linked derivatives like plastics, along with a sharp surge in memory chip costs and currency-related pressures, are forcing manufacturers to pass on higher costs to consumers.Electronics retailers and manufacturers expect another wave of hikes, with appliances and televisions likely to become 5–7 per cent costlier, smartphones 10–15 per cent higher, and laptops 8–10 per cent more expensive, according to industry estimates.“The latest price action would mean one of the steepest rounds of increases in recent years,” said the chief executive of a leading national electronics retail chain, adding that repeated hikes could strain demand.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 per cent hike, citing persistent pressure in input costs. “Prices of crude-linked derivatives such as plastics remain elevated. If summer demand strengthens, the next round of increases could come as early as next week,” said B Thiagarajan, managing director of Blue Star.Haier India has also indicated a 4–7 per cent price increase across product categories from April 21, while television makers are pushing for similar hikes in the near term.The latest increases follow earlier rounds in January and February driven by higher input costs, weaker currency, and revised energy efficiency norms for air conditioners, followed by another round in March–April due to higher freight costs and geopolitical disruptions affecting crude-linked inputs.In the electronics segment, memory chip shortages and strong demand from artificial intelligence applications have further pushed up costs, particularly 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 affecting volumes.The inflationary trend is also spilling into daily-use consumer goods, with companies raising prices of soaps and detergents due to higher raw material costs such as palm oil and crude-linked inputs like polypropylene and linear alkyl benzene.Some fast-moving consumer goods firms are also reducing pack sizes instead of increasing prices, as cost pressures persist across packaging, energy, and logistics.
