TV prices may increase by 3-4 percent from January next year. The main reasons for this are the shortage of memory chips and the devaluation of the rupee, which recently crossed the level of Rs 90 per dollar for the first time. The weak rupee has hit the Indian TV industry hard, as the domestic value addition in an LED TV is only 30 percent. Most of its key components such as open cells, semiconductor chips and motherboards are imported. At the same time, the global shortage of memory chips has also become a serious problem. In particular, the increasing demand for high-bandwidth memory (HBM), which is primarily used for AI servers, has increased the prices of all types of memory such as DRAM and flash. Chipmakers are now focusing on high-margin AI chips, reducing supply for older devices, such as TVs.
Higher India statement
NS Satish, president, Haier Appliances India, said LED TV prices could rise by up to 3 per cent due to the shortage of memory chips and the depreciating rupee. Some TV manufacturers have already informed their dealers about the price hike.
Memory chips prices increased by 500%
Super Plastronics Pvt Ltd, which is the licensee of global brands like Thomson, Kodak and Blopan, reported that “prices of memory chips have increased by 500 per cent in the last three months. The company’s CEO Avneet Singh Marwah said that TV prices may increase by 7-10 per cent from January, mainly due to the shortage of memory chips and the depreciation of the rupee. He warned that if the prices of memory chips remain the same in the next two quarters, then TV prices will rise. There may be further increase.
Impact of GST cut limited
According to experts, the upcoming price hike may reduce the gains from GST cut in smart TV sales. The government has reduced GST on TVs 32 inches and above from 28 percent to 18 percent, bringing prices down by about ₹4,500. However, rise in memory chips prices and rupee weakness could wipe out much of this gain.
Videotek’s statement
Videotek, which acts as ODM for several leading brands and has its own brand ‘Diva’, said it is facing continued pressure due to the sharp rise in prices of memory chips. Company director Arjun Bajaj said that we are seeing an increase of up to 1,000 percent in the prices of flash memory and DDR4, and the main reason for this is the diverting of supply to AI data centres. This pressure is likely to continue at least until the second quarter of next year, after which there may be some stabilization in global memory chips supply. He also said that “rupee devaluation is further exacerbating the situation, leading to a steep increase in import costs. The impact of these increases will be visible in the market over the next few weeks.”
India’s TV Market Perspective
According to the latest report by Countrypoint Research, smart TV shipments in India are set to decline by 4 percent in Q2 2025. This decline was mainly due to saturation in the small screen segment, lack of new demand factors and weak consumer spending. India’s TV market was estimated to be worth $10-12 billion by 2024 and has strong growth potential due to increasing demand for smart TVs, rising disposable income, larger screens and OTT content.
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