Hard-disk supply disruptions due to floods in Thailand and sharp devaluation of rupee against dollar during the last six months have impacted a section of laptop and PC prices, including the assembled products, by 5-20 per cent in last couple of months.
While Lenovo confirmed product price hike by five to 10 per cent during October–December 2011, market sources suggest that Acer India has increased prices in two tranches to a net of nearly 10 per cent. Acer refused to comment on the issue.
“The depreciation (of the rupee) is quite high. Since component costs have gone up, we will try to minimise what we need to pass on to customers. But we will not be able to absorb the full the cost increase,” Lenovo said in an e-mailed response to
Sony India, meanwhile, indicated to have absorbed the cost push so far but may resort to price hike in case rupee slides further. “In case the rupee depreciates further, companies will be pressurised to correct product prices,” Mr Sunil Nayyar, Senior General Manager, Sony India, said.
Market leader, Hewlett Packard, did not comment on price revisions.
It, however, hinted at possible constraints in hard disk supply following the floods in Thailand.
Assembled PCs
On the other hand, prices of assembled and unbranded PCs have increased by over 20 per cent.
An assembled desktop which used to cost Rs 20,000 in the pre-festive season, now costs Rs 26,000. Market sources said that a slide in the rupee has pushed up component costs that include processors, RAM and motherboard.
Typically, a hard disk accounts for nearly eight per cent of a PC or laptop costs. A 30 per cent hike means that they account for a two percentage point increase in original costs (i.e. share of hard disks cost move up to 10 per cent of PC prices). However, a 20 per cent impact on component prices following currency fluctuations is more difficult to manage.
Mr Alok Bharadwaj, Chairman, Manufacturers' Association for Information and Technology (MAIT), confirmed to a rise in assembled desktops.
According to MAIT sources, larger companies were likely to feel a lesser impact of hard disk drive shortages as they retain supplies.
Even suppliers, they anticipate, are likely to focus on increased supply to larger PC and laptop makers compared to smaller ones.
This tendency (of keeping commitments to larger firms) will incidentally have an impact on the assembled and unbranded PC segment.