Advertisment

LGEIL announces price hike in CRT monitor segment

author-image
DQC Bureau
New Update

MUMBAI



June 06, 2006

Advertisment

LG Electronics India announced a marginal price hike in CRT monitors owing to

the constant escalation of input costs, effective from 16th June'06 onwards. The

price hike in CRT monitors segment will be approximately of 2percent.

Commenting on the hike R Manikandan, GM-Sales and Marketing, IT Products,

LGEIL stated, "The US dollar rate is on a rise which has resulted in

additional costs on imported raw materials for CRT monitors. Also prices of raw

material have increased sharply especially copper. Thus, given the current

market scenario, price hike for CRT monitors was inevitable. We have tried to

minimize the effect on consumers by absorbing these rising input costs over the

years but the trend is on a constant rise and we have reached at a level where

absorbing the entire cost internally seems to be a tough proposition"

Copper and plastics are some of the critical inputs of CRT PC monitors and

all these raw materials have registered an average price hike of 20 percent to

25 percent. Steel and copper prices alone have seen a price rise of 25 percent

and 100 percent respectively as compared to Jan'06. Aluminum and crude oil

prices have gone up by 40 percent and 20percent respectively, resulting in an

escalation of 20 percent in the cost of various engineering, plastics and

energy.

Advertisment

Although the net impact of exchange rate and raw material cost increase is

very high, LG claims that it is still absorbing a major portion of the same and

passing on only a minimum price increase so that the overall impact on the PC

pricing is low. Moving ahead, there will be a gradual price increase on CRT

Monitors although slowly but steadily till end of August 2006.

Advertisment