Consumers can look forward to a possible decrease in prices of electronic products during the festive season, offering some relief from inflationary pressures.
The increased demand for electric goods, including mobiles, TVs, laptops, and more, may result in significant price reductions.
To boost the demand for electronic products, companies are likely to offer substantial discounts during the festival season.
Over the past year, the demand for these products has been sluggish due to their high prices.
However, companies are confident that an upsurge in demand will lead to increased profits.
Reasons behind Potential Price Reductions
Transportation costs for manufacturing electronic devices, which reached record highs during the COVID-19 pandemic, have substantially decreased.
Freight costs from China, for example, have dropped from $8,000 to $850-$1,000, significantly reducing overall expenses.
Moreover, semiconductor chip prices have experienced a decline from their peak levels during the pandemic.
Industry experts indicate that electronic component prices have fallen by 60-80%.
The global reduction in freight costs and a slight decrease in certain countries due to economic downturns have contributed to this trend.
While some industry executives mention a slight 4-5% increase in freight costs, it can be attributed to weak demand rather than a significant hike.
Stable Raw Material Prices
Anil Rai Gupta, Chairman of Havells India, highlights that raw material prices have remained stable for a considerable period.
This stability instills expectations of potential profits during the upcoming festival season.
