TV prices to increase by up to 10% within two months.

Television Panel Prices Expected to Rise as Open-Cell Costs Soar

Consumers may soon face higher prices when purchasing television panels as the cost of open cells continues to surge, while manufacturers have scaled back production. This issue has plagued the industry since the onset of the pandemic, with open-cell prices increasing by 20% since December. Manufacturers anticipate an additional 15% hike to take effect after the Chinese New Year, exacerbating the demand-supply imbalance.

Open cells, a crucial component in television manufacturing, account for 60-65% of production costs. These cells are predominantly manufactured by a handful of Chinese companies, granting them significant pricing power. Despite a temporary dip in open-cell prices last year, the current trend points towards further increases in the coming months.

While the final decision on price hikes rests with manufacturers, retailers expect both small and large-screen television panels to be affected. However, the extent of the price increase will largely depend on how manufacturers choose to pass on the elevated costs to buyers. Some manufacturers may opt for staggered price adjustments, considering their existing inventory levels.

Avneet Singh Marwah, Director and CEO of Super Plastronics, a Kodak brand licensee, explained, “Open-cell prices are increasing month to month, and there is a demand and supply situation again. Manufacturers have decided to cut production. Therefore, they will increase prices. There will be a huge spike in large sizes and in smaller sizes also. On the final product, there can be an increase of a minimum of 10% in February and March.”

Videotex, another contract manufacturer of television panels, plans to implement a price increase of 5-10%. However, the industry remains uncertain about the extent to which open-cell prices will continue to rise.

Despite these challenges, industry players are striving to ensure a smooth supply chain. Arjun Bajaj, Director at Videotex, stated, “We manage well due to strong relationships with suppliers and solid collaborations with brands. We’re getting ready with enough inventories to keep the supply chain running smoothly.”

As television panel prices appear poised to climb, consumers may need to prepare for increased expenses in the near future.

Television prices are set to increase by up to 10% within the next two months. This price hike is expected to impact various brands and models across the market. Consumers planning to purchase a television in the near future should be aware of this potential increase and may want to make their purchase sooner rather than later to avoid paying the higher prices.

Disclaimer: Only the headline and content of this report may have been reworked by Newsearay, staff; the rest of the content is auto-generated from a syndicated feed. The Article was originally published on Source link

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