The Hindu Business Line : Personal computer prices likely to go up by 2-5%

New Delhi, March 11 Prepare to shell-out more for that computer you have been eyeing at the store. Stung by a weak rupee, most PC makers have already decided on or are seriously considering a 2-5 per cent price hike for both desktops and laptops. This means that consumers may have to fork-out up to Rs 1,250 extra for a computer priced at Rs 25,000.

HCL Infosystems has already effected a two per cent price hike, while the Mumbai-based Zenith is all set to announce five per cent increase in price. Since the PC industry relies heavily on import of IT components and inputs for product manufacturing, price of the end-product closely tracks the currency movement. The rupee had breached 52 to a dollar mark on March 3; it has depreciated by nearly seven per cent against the greenback since the beginning of the calendar year.

Dollar impact

“Yes, there has been an impact of the dollar on the prices of both computers and peripherals. While the dollar rose over six per cent, some of the impact has been offset by the excise duty reduction (from 10 per cent to 8 per cent). Hence, we have increased the price by only two per cent,” Mr George Paul, Executive Vice-President of HCL Infosystems, told Business Line.

Zenith would announce its new prices in the new 3-4 days. “We are already revisiting the numbers and are likely to raise the prices by about five per cent,” its CMD, Mr Raj Saraf said. Zenith’s computers are currently priced between Rs 15,000 and Rs 45,000, and five per cent increase would mean an extra Rs 750-2,250 depending on the configuration.

When contacted, Mr Rajiv Grover, Director, Consumer Products, Personal Systems Group, Hewlett Packard, India, confirmed that the company is planning a price hike. “The increase would be in line with the dollar increase against the rupee and this announcement should happen soon,” he said.

Various options

However, Acer said it was exploring “various options”. “There are inventories available that have the benefit of the earlier price points. So any price increase could be staggered,” Mr S. Rajendran, Chief Marketing Officer, Acer India, said pointing out that any final decision would also have to take into account the fact that Government order pipeline tends to build-up in March.

Meanwhile, industry officials disagree that a higher price tag may turn away buyers or dampen the offtake.

“The consumption is impacted more by the overall economic scenario, than the price variation,” said Mr Paul of HCL Infosystems.

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