LG Electronics hikes prices of peripherals

NEW DELHI, INDIA: Stung by rising input costs, LG Electronics India has announced a price hike ranging between 7 and 10 per cent across categories such as monitors and optical storage devices.“The targeted price increase is around 7 per cent to 10 per cent. However, with a view to soft-pedal the sudden impact, LG will be increasing the prices in a phased manner, starting with 3 per cent with immediate effect,” a company release said.

R. Manikandan, Business Group Head, Monitors and OSDs, said: “It has become imperative for us to consider a price hike due to a rise in exchange rate. There is about 7 per cent rise in exchange rate over the last one month period, resulting in increased cost, calling for an increase in market prices.”

The statement said that as for LCD monitors, As the customs duty is based on MRP, the dollar appreciation is compounded by proportionate increase in duty owing to increased MRP. Additionally, there is an uptrend in LCD panel prices. Thus, the impact will be a combined effect of dollar appreciation, duty increase and panel price increase,” it added.

When contacted, Vinnie Mehta, Executive Director, Manufacturers’ Association for Information Technology (MAIT), said that although the strengthening of the dollar had pushed up the input costs, the technological advances in the sector were likely to neutralise the impact over a period of time.

Source: Agencies