Prices of TVs, ACs, mobiles to go up by Feb end amid supply shortage due to coronavirus

Companies are also reportedly cutting down discounts and offers, which could increase prices 3-5%.
Prices of TVs, ACs, mobiles to go up by Feb end amid supply shortage due to coronavirus
Prices of TVs, ACs, mobiles to go up by Feb end amid supply shortage due to coronavirus
Written by:

The impact of the ongoing coronavirus may start to pinch the pocket of the average buyers of electronic goods originating from China. While many top brands have shifted their final assembly of smartphones and white goods and appliances, the components for these have to be still imported from China. With supplies shrinking due to the virus, the demand-supply gap is widening, leading to some vendors either upping the prices or withdrawing the offers and discounts as per an Economic Times report.

The market experts expect that the net impact in the final price of the products could be between 3% and 5%.  On items like televisions, the likely increase in the selling prices may be more, at between 7% and 10%. This is being explained by the fact that the TV panel prices have already gone up by 15% to 20%.

Apart from the prices being impacted many companies may not be able to make deliveries of their products. Apple has already issued at a warning that there could be delays in shipments. Most trade partners would have managed until now with the inventory they have been carrying. With the crisis prolonging the real impact may hit the markets in March 2020.

The days of “deep discounting” on mobile phone prices on ecommerce platforms like Amazon and Flipkart may also end. The trade is quick to point out that there will not be any change in the MRP (maximum retail price) since hardly any product is being sold at their MRPs.

Products like air conditioners are seeing similar scenarios too, with brands like Daikin already informing their retail outlets that there is going to be a price increase. The compressors for the air conditioners are made in China and shipments are getting affected. Some say that alternative modes like air freight are being adopted, again pushing up the costs.

The reality is some of the manufacturing centres in China like Hubei and Shenzhen from where the electronic goods are sourced are shut down or are operating at much lower capacities. The Chinese government has imposed travel restrictions on its citizens fearing a massive outbreak of the virus. So, employees who went to their homes for the annual Chinese New Year Holidays have not returned to work.

Amidst all this, there are Chinese brands which are ready to brave it out and say they won’t effect any increase in their products and any cost increase will be absorbed by them.  These include Vivo, Relame and Oppo.

Related Stories

No stories found.
The News Minute