Whalesbook
TV Costs Up, But EMIs Keep Big Screens Selling
The Indian television market is facing rising input costs that are pressuring manufacturers and prices. Higher prices for memory chips, plastics, and ocean shipping, worsened by Mideast tensions, are driving up production costs. A weaker rupee also raises the cost of imported parts for TVs. Entry-level 32-inch models are seeing prices increase by about ₹2,000 to around ₹11,000. This price rise is a major worry for the industry, including SPPL, which manages brands like Thomson, Kodak, and Blaupunkt. SPPL's CEO noted the difficulty in forecasting growth due to rising costs and is seeing some consumers switch to smaller screen sizes. For example, a customer considering a 55-inch TV might now settle for a 50-inch model.
However, financing options are helping to support demand. Companies like Haier India report that about 50% of their business comes from EMI (Equated Monthly Installment) plans. These plans help consumers absorb price increases. Haier India's President noted that an extra ₹5,000 cost adds only a few rupees to monthly payments, making pricier TVs more affordable. This shows consumers are split: some buy smaller TVs, while others use financing to afford larger, premium models.
Shipments Face Short-Term Drop Amid Cost Pressures
Analysts expect the Indian TV market to shrink in the short term. Counterpoint Research forecasts shipments to fall 5-6% in the first quarter and 3-5% in the second quarter of 2026. This outlook is tied to rising RAM costs, shipping problems from Mideast instability, and the weakening rupee. These issues are pushing overall TV prices up.
Companies like Samsung, which control more of their production and supply chains, are seen as better able to handle these cost pressures. Samsung India is sticking to its premium strategy, highlighting advanced features and larger screens, with EMIs crucial for sales of these pricier units. LG India is using its OLED and QLED tech to attract buyers of premium TVs, also with financing.
Despite current issues, the Indian TV market is expected to move toward premium models long-term, with larger screens (55-inch and up) gaining share. Consumers might keep their current TVs longer, but when they upgrade, they increasingly choose bigger screens. Analyst Anshika Jain of Counterpoint Research notes that while widespread downtrading isn't clear, upgrades may slow. Financing remains key for the premium segment.
Market Risks: Supply Chain and Currency Woes
Financing offers some support, but the Indian TV market faces several risks. Heavy reliance on imported parts, like chips and panels, makes the market very sensitive to currency drops. A weaker rupee could sharply cut profit margins, forcing manufacturers to pass costs to consumers. This could lead to more downtrading and lower demand than expected.
Mideast instability risks global shipping routes, causing unpredictable delays and higher transport costs. Further escalation could disrupt the supply chain, causing shortages or higher shipping costs, which would delay production and raise final prices.
Competition in India also makes companies reluctant to pass on all cost increases, squeezing profit margins. Larger players like Samsung may have the financial strength to absorb these pressures, but smaller brands could struggle. The general economy, including inflation and potential interest rate hikes, could also reduce consumer spending on big-ticket items like TVs, even with EMIs. Any recovery expected in late 2026 depends on stable economic conditions and easing global supply chain issues.