The rupee/dollar value hit a significant low at 69.225 in August. After the recent decline in the rupee value, most mobile brands were forced to increase the prices of their products. Almost 50% of the mobile phone models currently available in India witnessed a price hike within the last month. Though the situation is relatively better now, it did leave a significant impact on mobile phone prices.
We at MySmartPrice decided to take a look at what mobiles have been affected, and by how much. We looked at all the data that we recorded over the last quarter, and highlighted that against the changes that occurred during last month’s hike in prices. All in all, we looked at the price data of over 1400 mobiles and came up with the following analysis.
Out of the 519 mobiles we analyzed, the prices of 238 mobiles have gone up by 8.41% in August 2013. Considering the fact that mobile phones tend to show a price drop of 3.63% (M-o-M), the current rupee decline pertains to an effective price hike of 12.46% (M-o-M).
However, 36% of mobiles didn’t have a price change and a minimal 18% mobiles have shown a price drop, which should be around 50% in ideal conditions.
Of all the brands, HTC comes first with a total increase of 16.86% price rise for the 8 mobiles it currently sells in the country. This is followed by a 14.2% price increase for Spice and a 12.88% increase in the prices of Karbonn mobiles.
The market leader Samsung had a minimal 5.94% increase for about 30 mobiles. Analysts believed that companies manufacturing mobiles phones in India will have a lesser impact, but clearly the above data proves otherwise.
Indian brands like Micromax, Spice, Karbonn witnessed a considerable hike. Barring HTC, the worst affected brands are entry level and mid-level smartphone makers like Micromax, Spice, Karbonn, Lava, Maxx. This is understandable as most of these players buy handset parts from China and assemble them in India.
By Operating System:
Although Apple has only 14 current active models in India, 8 of them witnessed a price hike sustaining to 6.43% hike. The price increase is low as compared to other brands because Apple is taking a 14% margin hit to keep the prices steady in India.
Considering the type of mobile phones, prices of 98 smartphones were raised by 8.95% and about 140 feature phones were increased by a similar 7.36%.
Trending Mobile Phones:
We have also analyzed the top 30 popular mobiles for the last two months (using our Webmaster Tools data) and concluded that 22 of them had a price hike of 7.35%. Well, it clearly looks like the steeply depreciated rupee value did leave a huge impact on the mobile prices.
As the rupee’s downslide reached a halt in the last two weeks, we need to wait and see if it can stabilize in the coming weeks and months. Till then, you might want to postpone your plan of buying a gadget this Diwali!
P.S: You can find the raw data used for the analysis in this spreadsheet.