HANDSET MAKERS MAY NOT INCREASE PRICE BEFORE DIWALI

There is some news that as the rupee touches 70 to USD; Handset makers may increase prices ahead of festive season and consumers may prepone their Diwali shopping for mobile phones.

I feel that the above observation is not correct. Almost every manufacturer have locked in inventory upto September at the depreciated value of the Indian currency which ended at around Rs. 68.50 to 69.50 to USD. Although the Dollar is strongly strengthening against Indian Rupee, even than Mobile Handset manufacturers will not increase prices before festive season. Currently USDINR is in HOLD LONG position USDINR has crossed the high but the trend was not so strong so for short term better buy above 70.36 with stop at 68.6 as per the experts.

Inshort the difference is less than 1.25% which is very small. Secondly growing competition will force manufacturers to absorb this difference in their profits and mobile makers will happily do so to get maximum sale during Diwali. Therefore consumers may not prepone their Diwali shopping for mobile phones and will enjoy shopping during the festive season & celebrate happiness with connecting people through mobile phones.