The drive for digital India has seen multiple new companies emerging in the market with their electronics and related products. A few of the companies, including OnePlus, Samsung, Apple, Xiaomi, Redmi, Oppo, Realme, Vivo, and more, have won the hearts of Indian people with their several products. India is a very price-sensitive market, and in a market such as this, if companies don’t price their products properly, they are going to lose out on customers’ love. Recently, companies have been hiking the price of their electronic products such as smartphones and TVs. But why are these prices going up all of a sudden? Let’s find out.
Huge Shipping Costs
One of the biggest changes that pandemic has brought to the business world is the shipping routes and shipping charges. Companies now need to shift to newer routes and suppliers because of the restrictions and lockdowns in certain places. For companies that have to take larger routes, they need to shell out more money. Further, even the shipping costs, in general, have risen up quite significantly.
Shortage of Components
It is very simple math; the scarcer a commodity is, the more its value will be. At this point in time, there is a severe chip shortage throughout the world. It is affecting companies that manufacture electronics on a large scale. Further, other components of electronic products such as display panels and more have become scarce too.
Huge shipping costs and shortage of components are two of the major reasons why companies who were selling their products at a low-profit margin had to increase the pricing of their offerings. Companies such as Redmi have already implemented a price hike to their multiple products. Just yesterday, we reported that the Redmi Note 10 Pro had received its second price hike in one month.
There are tons of other products that will be receiving price hikes very soon, so don’t be surprised if you saw a particular product at a cheaper rate, and now its price has increased.