Mobile handset prices set to increase soon

At a time when there is a clamour for price reduction, prices of mobile phone handsets are set to rise due to exchange rate fluctuations.

According to sources in retail sector, Finnish handset-maker Nokia has already increased prices of its base models by around 3-4 per cent. Industry analysts expect other manufacturers to follow suit.

For example, Taiwanese mobile handset manufacturer HTC Corp will increase prices by 5-10 per cent for its existing models. HTC is a manufacturer of premium handsets, with prices starting at Rs 13,000.

“The 25 per cent increase in the value of dollar vis a vis rupee (dollar rose to Rs 50 this month from Rs 40 in March) has resulted in our import costs going up. This has compelled us to increase the prices of our old models launched during the last 6-9 months while the new models will not be impacted,” HTC (India) Country Head Ajay Sharma told Business Standard.

Similarly, Spice Mobiles, the handset-maker of the NRI industrialist BK Modi-owned Spice Group, is also increasing handset prices by 10-15 per cent.

European handset major Meridian Mobile, which sells under the brand name Fly, recalibrates prices every month depending on the market conditions. Now, with competitors increasing prices, it has decided to selectively reduce prices, and in many cases much lower reduction (like only 6 per cent reduction on certain models from the 10 per cent decided earlier).

While Motorola is “keeping a close watch and may look at a nominal increase shortly,” South Korean handset major Samsung and global handset major Sony Ericsson have decided not to hike prices for the time being.