TV Price Hike: Buying a TV may become more expensive from January, prices will increase due to these two reasons..
If you are planning to buy a new television, this news is important for you. TV prices are likely to increase starting in January. Two major reasons are being cited for this: a severe shortage of memory chips and the weakening of the Indian rupee.
In recent months, the rupee's value has crossed the 90 rupees per dollar mark for the first time. This has directly impacted the electronics industry, as only about 30 percent of the value addition in LED TVs manufactured in India takes place domestically. Essential components of TVs, such as open cells, semiconductor chips, and motherboards, are still largely imported. Therefore, the depreciation of the rupee directly increases costs, which ultimately falls on the consumers.
Memory Chip Crisis Adds to Concerns
The second major factor affecting TV prices is the global memory chip crisis. The demand for high-bandwidth memory (HBM) for artificial intelligence (AI) servers has suddenly surged. This has led to a limited supply of memory chips worldwide, and prices for all types of memory, including DRAM and flash memory, have seen a sharp increase.
Chip manufacturers are now focusing on more profitable AI chips, which is reducing the availability of chips needed for traditional electronic products like televisions.
How much will prices increase?
Industry sources say that a 3 to 4 percent increase in LED TV prices is possible from January. Some companies have already informed their dealers about the potential price hike. However, some manufacturers estimate an even higher increase, suggesting prices could rise by 7 to 10 percent, as the cost of memory chips has increased several times over in the past few months. Super Plastronics Private Limited (SPPL), a TV manufacturer that holds licenses for several global brands including Thomson, Kodak, and Blaupunkt, said, "Memory chip prices have increased by 500 percent in the last three months." According to Avneet Singh Marwah, CEO of SPPL, the combined impact of the memory chip shortage and the depreciation of the rupee could lead to a seven to ten percent increase in television prices starting in January.
What advice for consumers?
If you are planning to buy a TV soon, it might be beneficial to make your purchase before the end of December. You may have to pay more for the same model once the new prices take effect in January. Additionally, it would be wise to compare options based on your budget and needs, and keep an eye out for offers and discounts.
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