Rising dollar likely to make your cell dearer

NEW DELHI: If you are planning to buy a new mobile phone, brace up to pay more. A 15% rise in the dollar against the rupee has hit cellphone makers badly.

All major cellphone makers are evaluating a 7-10% price increase if the dollar appreciates further. About 100-million cellphones are likely to be sold this year compared to about 70 million last year.

The rupee hit a two-year low at Rs 46.60 against the dollar on Tuesday, forcing cellphone makers into meetings. “We are evaluating the situation. The appreciation in the dollar against the rupee has made all the components costly.

The industry will have to take a decision on price revision upwards it if it goes towards Rs 50 against the dollar,” says Samsung Mobile country head Sunil Dutt.

A price increase may hurt the sales of top-end models most as handset makers may not increase prices of low-end models too much, the latter being a price-sensitive market. Laptop vendors, on the other hand, may not follow up with a price hike as they revised prices upwards by 10-13% in May this year, owing to dollar appreciation.

Cellphone business, however, works on thin margins and companies are waiting for each other to take the first step.