If you are planning to buy a television, then this news is very important for you. In fact, delaying your purchase may prove costly, as TV prices may increase significantly in January. According to reports, TV prices may increase by 3-4 percent. The reasons behind this price increase have also been explained. Come let’s know more…
Double hit on TV prices
TV prices are facing a double whammy, and prices may increase by 3 to 4 percent from January. According to PTI, one of the main reasons for this is the shortage of memory chips used in TVs, while the weakening of the Indian rupee has also put the Indian TV industry in a difficult situation, with the rupee trading below 90 against the US dollar. On Monday it fell further to 90.63.
How does falling rupee cause problems?
First of all, let us understand how the weakening of the Indian rupee impacts the TV industry. The fall in rupee has a direct impact on this business because the domestic value addition in LED TV is only around 30 percent. Major parts like open cells, semiconductor chips and motherboards are imported, and the weak rupee means they have to spend more money on imports.
Chip shortage further increased the problem
While on one hand the falling rupee has created problems for the TV industry, on the other hand the shortage and rising prices of memory chips used in TVs have played an important role in exacerbating this problem. Chip prices are increasing due to limited availability of these chips. According to the report, huge demand for high-bandwidth memory (HBM) for AI servers is causing a severe shortage worldwide, leading to rising prices for all types of memory (DRAM, flash). Chip-making companies are focusing on more profitable AI chips, reducing supply for older devices like TVs.
Chip prices rose 500% in 3 months
A PTI report quoting Haier Appliances India Chairman NS Satish said that LED TV prices may increase by 3 percent due to the memory chip crisis and the weakening rupee. He further said that some TV manufacturers have already alerted their dealers about the upcoming price hike. Super Plastronics Pvt Ltd, the license holder of global brands like Thomson, Kodak and Blaupunkt, said in a statement that prices of memory chips have increased by 500% in the last three months. CEO Avneet Singh Marwah even said that TV prices may increase by 7-10 percent from January.
