Weak Rupee and Chip Shortage to Make LED TVs Costlier from New Year

New Delhi: Consumers may have to pay more for LED televisions starting January, as rising memory chip prices and a weakened Indian rupee are expected to push TV prices up by 3-4%. This development poses a significant challenge for TV manufacturers, who rely heavily on imported components.

Rupee Depreciation Adds Pressure
The Indian rupee recently crossed the ₹90-per-dollar mark for the first time. Only around 30% of an LED TV is manufactured domestically, while critical components like open cells, semiconductors, and motherboards are imported. With the rupee weakening, the cost of these imports rises, directly impacting retail prices.

Memory Chip Shortage Intensifies the Problem
The global memory chip shortage, driven by surging demand for high-bandwidth memory (HBM) for AI servers, has further exacerbated the issue. Prices for all types of memory chips, including DRAM and flash memory, have skyrocketed. Manufacturers are prioritizing high-margin AI chips over traditional consumer electronics, limiting supply for TVs.

Industry Response
N.S. Satish, President of Higher Appliances India, estimates that LED TV prices could rise by at least 3% due to the combined effect of chip scarcity and rupee depreciation. Several manufacturers have already informed their dealers about potential price hikes.

Tensions Rising Among Manufacturers
Super Plastronics Private Limited (SPPL), which produces TVs for brands like Thomson, Kodak, and Blaupunkt, has expressed concerns. CEO Avneet Singh Marwah noted, “Memory chip prices have increased by 500% in the last three months.” He added that due to the dual impact of the chip shortage and rupee depreciation, TV prices could surge by 7-10% starting January, delivering a significant shock to consumers, particularly after the festive season.

Consumers planning to buy a new TV in the new year may need to brace for higher costs, driven by global supply pressures and currency fluctuations.