Consumers planning to buy an air conditioner, television, refrigerator, washing machine or smartphone during the festive season may have to budget more. A combination of higher raw material prices, a weaker rupee, expensive freight and rising component costs is pushing consumer electronics and appliance makers towards another round of price increases.
From October 1, air-conditioner prices are expected to rise by around 5-8%, while some manufacturers are considering increases of 3-4% for televisions, refrigerators and washing machines.
If implemented widely, this would be the third major round of price revisions in the consumer durables segment in 2026. The first came during January-February, followed by another round in late March and early April.
Smartphones are facing similar pressure. Counterpoint Research estimates that average smartphone retail prices in India have increased by about 21% in 2026, higher than in other major markets tracked by the research firm.
Several cost pressures are converging at the same time.
Higher commodity prices are among the biggest concerns for appliance manufacturers.
Copper is particularly important for air-conditioner makers because each unit typically uses around 3-4 kg of the metal. Copper prices have climbed to around $14,500 a tonne, compared with roughly $8,000-$9,000 a tonne a year earlier.
The increase has a direct impact on manufacturing costs for products such as air conditioners, refrigerators and other electrical appliances.
Prices of other important metals have also moved higher. Aluminium, copper and tin prices rose by around a third between January 2025 and April 2026, according to the International Energy Agency.
Manufacturers are also dealing with higher prices for plastics and electronic components. Godrej Appliances has indicated that commodity costs have increased around 8-10% since the previous price revision.
The depreciation of the rupee is adding another layer of pressure. The Indian currency has weakened by around 6.6% against the US dollar this year. It was trading near ₹95.95 to the dollar on September 28, compared with around ₹89.97 at the beginning of the year.
For manufacturers dependent on imported components, a weaker rupee means higher costs.
A component priced at $100, for instance, becomes more expensive in rupee terms even if its dollar price remains unchanged. The impact can be significant for electronics manufacturers that import semiconductors, display panels, chips and other high-value components.
India continues to depend heavily on imported electronic components. A NITI Aayog report released in May noted that the country imported around 90-95% of its semiconductor and electronic component requirements as of 2023.
Higher logistics costs are also adding to the pressure. Freight expenses faced by consumer durable manufacturers have reportedly more than doubled over the previous 30-60 days. Shipping delays have also stretched beyond 15 days in some cases.
Typhoons in Southeast Asia have disrupted shipments of components from China and Taiwan, while continued problems along Red Sea shipping routes have increased transit times.
Geopolitical tensions in West Asia have further pushed up fuel, insurance and shipping costs.
Changes in shipping routes and cargo handling have affected supply chains across several sectors, including electronics.
The smartphone industry faces an additional problem: tightening supplies of memory and storage chips.
Phones depend on a wide range of imported components, including:
Memory and storage chips
Processors
Display panels
Camera modules
Batteries
Rapid growth in artificial intelligence infrastructure is increasing demand for memory chips. AI servers and data centres consume large volumes of high-performance memory, creating competition for manufacturing capacity that would otherwise serve consumer electronics.
Counterpoint Research estimates that global smartphone retail prices have risen around 15% on average in 2026. India has seen an even sharper increase of about 21%.
More than 40% of smartphone models tracked by the research firm have seen price increases, while newly launched devices are on average around 25% more expensive than comparable models launched a year earlier.
Not necessarily. Consumers may not feel the full impact of the price increases immediately because retailers and distributors are still holding inventory purchased at earlier prices.
Godrej Appliances, for instance, has indicated that its distribution channel has around one to one-and-a-half months of inventory accumulated during August and September.
This could help retailers maintain older prices during at least part of the Diwali shopping period.
Retailers may also continue using:
Bank cashback offers
Exchange discounts
No-cost or subsidised EMI schemes
Festive promotions
Discounts on existing inventory
As a result, headline price increases may initially be partly masked by promotional offers.
The real impact may become more visible once older inventory is exhausted.
Products entering retail channels after October are more likely to reflect higher commodity, currency, component and freight costs. Manufacturers may also have less room to absorb these increases if cost pressures persist.
For consumers, this means the festive season could offer a temporary window where older inventory and promotional offers soften the impact.
But unless copper prices, freight charges, the rupee and electronic component costs ease, the broader direction for appliance and smartphone prices remains upward.
