Rising Prices: A Dramatic Surge in Television Costs Looms Ahead

Television prices are projected to rise by 3-4% due to rising memory chip costs and a depreciating rupee. The memory chip shortage, fueled by AI demand, has surged these costs. Domestic manufacturers face pressure, with the increased import costs potentially causing a further price rise in the coming months.

Television prices are set to climb by 3-4% starting January, industry experts warn. The anticipated hike is attributed to escalating memory chip costs coupled with the rupee's decline, which traded over 90 per dollar for the first time. This financial strain comes as major components remain imported.

The rupee's depreciation has intensified challenges for TV manufacturers, already grappling with a severe global shortage of memory chips. Demand for High-Bandwidth Memory used in AI servers has sent prices soaring. While chipmakers prioritize high-profit AI chips, supply for TV components dwindles.

Manufacturers like Haier and Super Plastronics are feeling the pinch, with SPPL CEO Avneet Singh Marwah predicting a potential 7-10% increase. This pressure, exacerbated by chip shortages, could overshadow recent GST reductions aimed at cheaper smart TV sales.

(With inputs from agencies.)