INVC NEWS
Mumbai : Brace yourselves, as the cost of purchasing a television set is about to surge starting April 1, 2024! In a move prompted by the escalating prices of open cells, which are pivotal components in television panel production, companies are gearing up to implement a 10 percent price hike to alleviate the financial strain caused by this surge in costs. This impending increase in TV prices is a direct response to the ongoing challenges faced by companies in managing price fluctuations, particularly exacerbated by the pandemic. Over the past year alone, the prices of open cells have skyrocketed by nearly 30 percent, compelling TV panel manufacturers to consider passing on a portion of this burden to consumers.
Escalating Prices of Open Cells
The root cause of this imminent price hike lies in the relentless surge in the prices of open cells, a critical element in television manufacturing. Comprising a substantial 60-65 percent of the total production cost, the open cell component plays an indispensable role in the overall cost structure of television production. Unfortunately, the production of open cells is primarily dominated by a handful of Chinese companies, who wield significant influence over both production volumes and pricing strategies. As a result, fluctuations in the prices of open cells have a profound impact on the entire television manufacturing industry, dictating the cost dynamics of the final product. With the market dynamics heavily influenced by a limited number of suppliers, manufacturers find themselves at the mercy of these companies’ pricing decisions, which often fluctuate at their discretion.
Market Response and Price Adjustment
Recognizing the gravity of the situation and the imperative to maintain profitability amidst escalating costs, TV panel manufacturing companies are left with little choice but to adjust their pricing strategies accordingly. In response to the sustained surge in open cell prices, manufacturers are bracing themselves for an across-the-board price increase of 10 percent effective April 1, 2024. This proactive measure aims to mitigate the financial strain induced by the sharp rise in production costs, ensuring the continued viability of businesses operating in the television manufacturing sector.
Implications for Consumers
The impending price hike in television sets will undoubtedly have significant ramifications for consumers. As of April 1, 2024, prospective buyers can expect to encounter higher price tags on television sets across various brands and models. This upward adjustment in prices reflects the economic realities of the industry, driven by the relentless surge in the prices of critical components such as open cells. Consequently, consumers may need to reassess their purchasing decisions and budget allocations to accommodate the increased cost of acquiring a television set post-April 1.
Industry Outlook and Long-term Implications
Looking ahead, the television manufacturing industry faces an uncertain landscape characterized by volatile supply chain dynamics and fluctuating input costs. While the forthcoming price hike offers a short-term solution to mitigate immediate financial pressures, long-term sustainability hinges on strategic initiatives to address underlying structural challenges within the industry. Key considerations include diversifying supply chains, fostering innovation in component manufacturing, and enhancing resilience against external shocks such as supply chain disruptions and geopolitical tensions.
