TV Price Hike: If you’re planning to buy a television, then this news is especially important for you. In fact, going ahead with your purchase could prove costly, as TV prices are expected to rise significantly in January. Reports suggest a 3-4 percent increase in TV prices. The reasons behind the price hike are also mentioned. Let’s learn more about it…
TV prices are going to be hit hard and prices are likely to rise by 3 to 4 percent from January. According to PTI, the main reason for this is the shortage of memory chips used in TVs, while the fall in the Indian currency Rupee has also put the Indian TV industry in trouble, which is trading below 90 against the US dollar. It slipped on Monday as well and reached 90.63.
How is the rupee’s fall a problem?
First, let’s explain how the Indian rupee’s decline affects the TV industry. The rupee’s decline directly impacts this business because domestic value addition in LED TVs is only around 30 percent. However, major components like open cells, semiconductor chips, and motherboards are imported, and the rupee’s decline is forcing them to spend more money on imports.
While on one hand the falling value of rupee has put the TV industry in trouble, on the other hand the shortage and rising price of memory chips used in it has played a major role in increasing this problem. Actually, the price of chips is rising due to their reduced availability. According to the report, due to the huge demand of high-bandwidth memory (HBM) for AI servers, there is a huge shortage of it all over the world, due to which the prices of all types of memory (DRAM, Flash) are increasing. Chip makers are focusing on more profitable AI chips, due to which the supply of old devices like TV is decreasing
A PTI report quoted NS Satish, Chairman of Haier Appliances India, as saying that LED TV prices could rise by up to 3% due to the memory chip crisis and the rupee’s depreciation. He said that some TV manufacturers have already alerted their dealers about the potential price increase.
In a statement issued by Super Plastronics Pvt Ltd, licensee of global brands like Thomson, Kodak and Blaupunkt, it has been said that the prices of memory chips have increased by 500% in the last three months only. CEO Avneet Singh Marwah even said that TV prices may increase by 7-10% from January.