Consumers wanting to purchase electronic items for their homes might soon have to dig deeper into their pockets, particularly for televisions. Industry experts predict that television prices will rise in 2021 due to exorbitant increases in component and raw material costs.
Television prices rise in 2021:
Prices for televisions eventually fall as they age and newer models enter the market. But no, not this year. In 2021, the price of the television is expected to rise significantly and may eventually exceed the price at which they were introduced.
Panels account for a large portion of the overall cost of a TV. In recent months, the prices of open-cell panels have more than doubled in worldwide markets. According to OMDIA, prices for TFT panels had already seen a 50% increase in 2020, and are expected to go up in 2021 as well.
Similarly, DSCC forecasts a 12% increase in LCD panel prices in Q2 2022 following a 14.5% increase in Q1 2021.
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Raw material cost
Additionally, the cost of televisions has risen due to an increase in the pricing of raw materials. Materials like copper, aluminum, plastic, and steel have seen a tremendous price change from last year. Plus, the costs of the ocean and air freight have also shot up this year.
Moreover, COVID-19 is one of the main reasons for the low import and export of required components. The ongoing pandemic has had an impact on mining operations and is increasing the overall input cost for appliances.
Global chip shortage
Moving on, crypto miners have a big role in increasing GPU scarcity, to the point that Nvidia had to introduce a mining restriction on their graphics cards. The TV sector, on the other hand, is also experiencing a chip scarcity, though not of GPUs, but of display driver chips.
This scarcity has harmed anything with OLED or LCD panels. This includes computers, tablets, cellphones, wearables, TVs, automobiles, and other electronic appliances.
The simple microeconomic law of demand and supply states that when demand exceeds supply, the price of commodities increase. Samsung already warned that component shortage will have an impact on TV manufacturing, and the repercussions may be seen in increased sticker prices.
TCL, too, has hiked the prices of its 6-series of televisions due to rising component and raw material costs. According to Wired.com, larger TV models are now 30% costlier than they were last summer.
Television prices rise in 2021: Conclusion
To conclude, there are several reasons that have led to the high sticker price of televisions. Meanwhile, because countries like China, Taiwan, and Japan dominate chip and display panel production, if such items are not supplied in the other regions, it will create a shortage scenario. And if the numbers above are anything to go by, we cannot hope to see television prices go down any sooner.
- Meanwhile, check out our comparison between Mi 11X and iQOO 7.