TV prices to rise due to chip shortage, weak rupee
What's the story
Television prices in India are likely to increase by 3-10% from January 2025. The hike is mainly due to a global shortage of memory chips and the depreciation of the Indian rupee (INR). The cost of essential components for LED TVs, which are mostly imported, has risen sharply. Manufacturers have already started informing dealers about the price hikes expected next month.
Market response
Chip shortage and currency depreciation impact TV prices
The global shortage of memory chips, driven by rising demand for High-Bandwidth Memory in artificial intelligence (AI) servers, has severely impacted the television industry. As chipmakers focus on higher-margin AI products, supply for legacy electronics like TVs has tightened. This has led to a spike in prices across DRAM and flash memory. Haier Appliances India's President NS Satish confirmed that the combined effect of chip shortage and rupee depreciation would be difficult to absorb.
Industry outlook
Manufacturers brace for price hikes amid chip crisis
Super Plastronics Pvt Ltd, which makes TVs under global brands like Thomson, Kodak, and Blaupunkt, has warned of a potential retail price increase. The company's CEO Avneet Singh Marwah said there could be a 7-10% rise in TV prices from January due to the memory chip crisis and depreciating rupee. Videotex's Director Arjun Bajaj also echoed similar concerns about sustained pressure on pricing and availability of components.
Import impact
Currency depreciation adds to the cost burden
The depreciation of the rupee has further worsened the situation by significantly increasing import costs. Bajaj said these increases will be reflected in the market as older inventory clears out. Despite adjusting production schedules and optimizing inventories, Bajaj admitted that "the prolonged nature of this cycle makes it challenging to fully absorb the cost escalation."
Consumer impact
Market shows signs of fatigue amid rising costs
The broader market is already showing signs of fatigue. According to Counterpoint Research, India's smart TV shipments fell 4% year-on-year in Q2 2025. The decline was mainly due to saturation in smaller screen sizes and softer consumer spending. Despite these challenges, India's TV market is still expected to grow in the long run, driven by rising disposable incomes and an increasing appetite for larger screens.