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From TVs to mobile phones: items that are likely to get more expensive from April 1st

Highlights
  • The new fiscal year will see a price increase on a number of commodities, including electronics
  • Companies would have to raise the prices of electronic goods due to the increase in raw material prices
  • Costlier mobile phone parts are expected to marginally increase the manufacturing cost

The new fiscal year, which starts from April 1st, is expected to make a number of commodities including electronics costlier. The Union Budget 2021 has increased the cost of raw materials that will make manufacturing marginally expensive and companies selling electronic goods raise the prices of their products. The electronic items that will be impacted the most by the change include mobile phones, TVs, refrigerators, and ACs. “Almost every organisation has agreed to increase the price of electronic goods beginning in April,” as per a report by Good Returns. Here’s a quick look at the electronic items that will get more expensive from April 1st in India:

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1. Mobile phones

The Union Budget 2021 introduces new tariffs, which will make mobile phones costlier. The Government of India has increased the import duty on mobile phone parts such as Printed Circuit Board Assembly (PCBA), camera module, connectors, back cover, and side keys by 2.5 percent. Since most smartphones manufactured in India are merely assembly plants for the aforementioned peripherals, the overall price of the finished product will undoubtedly go up. The additional cost, as always, will eventually be passed to consumers. OEMs could also cut additional corners, further compromising on key, but often neglected aspects such as type of material used, quality of components, etc, to neglect the increased tariff.

2. TVs

In addition to mobile phones, consumers may also see an increase in television prices in India from April 1st. The per-unit cost of TVs is expected to go up by Rs 2,000-Rs 3,000. The cause is being attributed to TV panels, which have been on a continuous rise due to supply shortage from the global vendors over the past few months, a hike in customs duty, a rise in the cost of input material like copper, aluminium, and steel, and an increase in ocean and air freight charges.

3. Chargers and adapters

Chargers and adapters, including those of mobile phones, will also see a bump in the price tag. The government of India has hiked the customs duty on the accessories to 10 percent from 15 percent. This could also add up to the smartphone’s price or incentivise more companies to adopt Apple, Samsung, and Xiaomi’s strategy of removing the charger from the retail packaging.

4. ACs and refrigerators

ACs and refrigerators are also going to be a pricey affair from next month. The government has increased the import duty on compressors for these products. Unless the companies decide to manufacture the part locally in India, the customers will have to bear the brunt of the increased tariff. The cost of an air conditioner per device will reportedly rise from Rs 1,500 to Rs 2,000. “In just one month, open-cell panels have increased in price by 35 percent on the global market, while copper prices have soared to new highs. Thus, increasing the cost of consumer products such as air conditioners, refrigerators, coolers, and fans,” added Good Returns report.

5. LED lamps, Solar inverters, and lanterns

The cost of LED lamps, Solar inverters, and lanterns would increase as manufacturing costs rise. The government has also revised the tariff on these electronic items. The import duty on LED lamps has been hiked from 5 percent to 10 percent, while solar inverters and solar lanterns would cost an extra 10 percent and 20 percent respectively.

The post From TVs to mobile phones: items that are likely to get more expensive from April 1st first appeared on 91mobiles.com.



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