Technology

Weakening rupee likely to push smartphone makers to increase prices, says report

Updated : August 17, 2018 10:34 AM IST

The pricing impact can lead the industry to consider a price increase as the 70-rupee psychological barrier has a major impact.

Chinese smartphone maker Xiaomi is evaluating the movement of the dollar.

Weakening rupee likely to push smartphone makers to increase prices, says report

The prices for smartphones are expected to rise in September as handset makers import most of their components from China were forced to factor in the four to six percent increase input costs rippled by the weakening rupee, reported The Economic Times.

"The rupee has declined 5.4 percent on-year against the Chinese RNB in the recent past, which will also impact pricing," Counterpoint Research analyst Hanish Bhatia told the paper. The pricing impact can lead the industry to consider a price increase as the 70-rupee psychological barrier has a major impact, experts told the daily.

India Cellular and Electronics Association (ICEA), which represents domestic and multinational handset brands, said the rupee erosion has been to the order of 6-8 percent on the earlier average level which was around 64-66 to the US dollar, according to the report.

Chinese smartphone maker Xiaomi told the paper that they are evaluating the movement of the dollar.

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