Want to buy a television? It may cost you more because…

If you plan to buy a television, you may have to pay more because prices of open cells continue to rise as manufactures reduced production, it was reported. Since the pandemic, the industry has been facing this issue as open-cell prices have gone up 20 per cent since December. Television-panel manufacturers expect another 15 per cent increase towards the end of February after the Chinese New Year.

Television may cost 10% more as prices of open cells rise.
Television may cost 10% more as prices of open cells rise.

The open cell is one of the main components in manufacturing television sets and it accounts for 60-65 per cent of the production cost. It is manufactured by four or five companies in China due to which pricing power remains in their hands alone.

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A retailer told Business Standard that both small- and large-screen television panels were expected to see an increase in prices. This largely depended on how manufacturers passed on to buyers the cost increase as some manufacturers might pass it on in a staggered manner.

“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 per cent in February and March,” Avneet Singh Marwah, director and chief executive officer, Super Plastronics, a Kodak brand licensee, said as per report.

Videotex, another contract manufacturer of television panels, plans to increase prices by 5-10 per cent as director Arjun Bajaj said, “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 per cent increase, depending on sizes. The prices are still going up, and we’re unsure how much more they’ll rise.”

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