Weak Re may push mobile handset rates

Mobile handset prices are set to go up by around 10-15 per cent due to the depreciation of the rupee against the dollar. In the last few months, the greenback has appreciated from Rs 39 to Rs 46 now. Most of the handsets sold by leading bands are imported which have become a costly now.

Says Lloyd Mathias, senior director (sales, distribution and marketing), Motorola, says, “Though it is very early to comment on the kind of rise in price that the industry would face, it is a matter of grave concern. It will definitely have a negative impact on handset prices.”

While the year began on a positive note for importers with the dollar at just over Rs 39, it began its upward climb about four months back peaking to Rs 46 today.

“The scenario in the begining of the year was very different with the dollar at about Rs 41, but now at Rs 46, it is bound to take its toll. We are still working on our costing strategy and it is still premature to say how it will impact consumers as the dollar is very volatile,” says Mathais.

“We have been absorbing the fluctuation till now, but if it does keep increasing then there would not be a marginal rise in prices but an increase of about 10-15 per cent,” says Kunal Ahooja, CEO, Spice Mobiles.

Samsung India, the second largest mobile phone player, also points out that it is keeping a close watch. Says Sunil Dutt, head of the Korean company’s mobile business, “Yes, the rupee-dollar fluctuation is adversely effecting mobile manufacturers. However, we will have discussions and take a call.”