If you’re in the market for a new television, be prepared to shell out more money, as prices of open cells, a crucial component in television manufacturing, continue to climb. Reports indicate a 20% increase in open-cell prices since December, a trend exacerbated by production reductions. Television-panel manufacturers anticipate an additional 15% surge post the Chinese New Year.
Since the onset of the pandemic, the industry has grappled with rising open-cell prices, which constitute 60-65% of the production cost for television sets. The production of open cells is concentrated in four or five companies in China, giving them significant pricing power.
According to a retailer interviewed by Business Standard, both small- and large-screen television panels are expected to witness price hikes. The extent of the increase depends on how manufacturers choose to pass on the cost escalation, with some potentially opting for staggered adjustments.
Avneet Singh Marwah, Director and CEO of Super Plastronics, a Kodak brand licensee, highlighted the ongoing demand and supply dynamics, stating, “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, is planning a price hike of 5-10%. Arjun Bajaj, Director of Videotex, mentioned, “The industry is dealing with a notable increase in open-cell pricing, which has been a recurring issue, especially after the Covid-19 pandemic. The recent price hike is because open-cell manufacturers curtailed production, resulting in a 20-40% increase, depending on sizes. The prices are still going up, and we’re unsure how much more they’ll rise.”
As consumers face the prospect of higher television prices, the industry contends with the challenge of balancing production costs and maintaining affordability in an increasingly competitive market.
