Companies

LED TV prices may go up on rise in display panel costs

Meenakshi Verma Ambwani New Delhi | Updated on January 16, 2018


With the rise in prices of display panels for TVs globally, domestic LED TVs are also likely to get expensive.

Though consumer durable players have been stocking up on inventory since the past two months to manage the uptick in demand during festival season, not all have passed on the increase in prices.

Players whom BusinessLine spoke to said as the new stocks come into the markets, companies will have to start increasing prices of LED TVs as they cannot absorb the increase in costs.

“LED sales are usually very high during festival season. Panel prices have gone up globally. As older stocks get depleted and newer stocks come in, players will have to start increasing prices of LEDs. It remains to be seen whether all will happen in the festival season or after depending on the inventory with the players,” said Eric Braganza, President, Haier India.

Players said this could also mean that while there may be some amount of discounts and freebies offered during Diwali on LED TVs, there is unlikely to be big price war or huge discounts.

CM Singh, COO, Videocon, added, “Display panel prices have gone up by as much as 25-30 per cent globally and as the new stocks start coming in, the industry will start seeing the impact of increased costs.”

For instance, a panel for 32 inches which was priced at $86-$87, has increased to about $150. The 32-inches segment contributes the biggest chunk to the LED market.

Another senior executive with a consumer durable firm said that as the competition has intensified in the market, the international brands had in fact cut down prices of their 32 inches models to retain their market share in this entry segment. He said it would be unsustainable for the industry to continue with these low prices as the display panel prices have gone up.

Instead of big discounts or price wars, retailers are likely to push aggressive finance schemes and extended warranty schemes this festival season.

Published on October 03, 2016

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