Charu is carefully picking electronics for her new home. She said, “I have to buy a lot of electronic products. I will put carpet on the floor so I will need a vacuum cleaner. I bought an ac. I am making a play area for Ziana, so I plan to put the ac the there. I found a very good fridge but it is quite expensive. I will buy a few things less to save expenses to buy the required items. I have to cut down on expenses. I also have to get geysers for Ziana and my bathrooms.”
Entry-level consumer electronics prices in India are climbing back to levels last seen six to eight years ago, reversing a long-standing industry trend of making technology progressively more affordable. According to a report by The Economic Times, manufacturers say that they can no longer absorb rising input costs, leaving consumers to bear the full brunt of price increases across smartphones, televisions and large appliances.Even mass-market air conditioners, refrigerators and washing machines are set to hit record highs from next month, raising concerns about a demand slowdown in the segments that drive volume for most brands, claims the report. “Prices are hitting record highs,” Kamal Nandi, who heads the appliances business at Godrej Enterprises, told the publication. “There is concern that entry-segment demand could weaken unless a harsh summer boosts sales.”The numbers tell the story starkly. Entry-level 5G smartphones, which were available for under ₹10,000 around Diwali, now retail between ₹13,000 and ₹14,000. Industry executives told the paper they expect prices to cross ₹17,000–18,000 in the next quarter, back to levels last seen in FY21, with some brands privately indicating to trade partners that prices could approach ₹20,000 within two to three months.Televisions and appliances tell a similar story. A 32-inch smart TV that sold for around ₹6,500 last year now goes for ₹8,500 and could touch ₹10,000 by May — matching what consumers paid in 2017–18. A 3-star, 1.5-tonne air conditioner, the default choice for first-time buyers, is set to cost between ₹37,000 and ₹40,000 from April, up sharply from ₹32,000–34,000 last summer.This marks a meaningful break from how the industry has long operated. Electronics prices have historically fallen over time as manufacturers scaled up and component costs dropped, with brands often absorbing whatever residual hikes remained to protect demand at the bottom of the market. That model has broken down. A sustained rise in memory chip prices over the past five to six months, combined with cost pressures from the Gulf conflict and a weakening rupee, has made absorption increasingly untenable.Retailers are feeling it too. Kailash Lakhyani, founder chairman of the All India Mobile Retailers Association, which represents over 150,000 retailers, said that brands including Vivo, Oppo, Samsung and Xiaomi have signalled fresh price increases of up to 10% on select models. Some of the damage is hidden in plain sight. “Some new models from Vivo and Samsung, despite carrying similar specifications to their predecessors, are priced up to 36% higher,” he said.Lakhyani added that Vivo’s sales team has indicated entry-level 5G smartphone prices could reach ₹20,000 by June. Making matters worse, the routine discounts that once softened the blow for buyers have quietly disappeared. “The industry typically sees quarterly price cuts, cashback offers and trade promotions, but these are now largely absent — effectively raising consumer costs by another 10%,” he told The Economic Times. Smartphone and television prices have been rising every 30 to 60 days since November–December.Consumers are already adjusting. Cellphone retailers report growing numbers turning to second-hand and refurbished devices, while others are simply holding off on purchases. The retailers’ association plans to petition the government once again to cut GST on smartphones priced up to ₹20,000 from 18% to 5%, arguing that without some relief, demand at the entry level may not recover on its own.
