BUSINESS

Hit by weak rupee, HP, Lenovo to hike prices soon

Source:PTI
June 21, 2013 08:17 IST

Leading computer makers, including Lenovo and HP, are set to hike prices of their products by up to 10 per cent in coming weeks, hit by increasing input costs due to rupee's southward journey.

When asked if the company is considering price hike due to rupee fall, Lenovo India MD Amar Babu told PTI: "We have been closely monitoring the prices and in this situation we will have to raise the prices, which will be in the range of 5-8 per cent in the coming weeks."

The weakening rupee impacts margins of computer makers and if a situation like this continues they are left with no other alternative but to pass the burden to consumers, he added.

Hewlett-Packard India is also raising prices of its computers and laptops. "The company has already increased prices up to 10 per cent and this will be effective by this week-end," sources with direct knowledge of the development said.

HCL Infosystems EVP (Marketing, Strategy and Corporate Development) Rothin Bhattacharyya said: "In this scenario we have decided to increase the prices of our computing range of products including tablets, consumer laptops and desktops, commercial desktops, servers, storage, networking and office automation products and consumables by 8 to 10 per cent effective from July 1, 2013."

Due to the steep decline of the rupee exchange value against the dollar the input costs for computing products are also going up, he added.

The rupee has depreciated sharply by about 10 per cent since May and today touched all-time low level of nearly 60 against dollar.

HP and Lenevo are two major players in the Indian market, cornering about 35 per cent of share together, according to research firm IDC. 

Source: PTI
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