Entry-level and mid-range TVs are being hit hardest, but rising semiconductor costs are putting pressure on TV makers across the market as AI drives up demand for chips.
In January, Samsung warned that TV prices could rise due to 'RAMageddon', but so far Smart TV makers have leaned on ad revenue to keep prices in check.
That may no longer be enough. Market research firm Omdia points out that the price of the mainboard used in 32- to 43-inch LCD TVs to exceed the price of the LCD panel for the first time in the second half of this year.
- "The shift is expected to weigh heavily on the profitability of TV makers, including Samsung Electronics and LG Electronics. Traditionally, the display panel has been the most expensive component in an LCD TV, but sharp increases in memory and other semiconductor prices are changing that equation," reported Korean newspaper ETNews.
Larger TVs are also affected
One of the main reasons is the rise in DRAM and NAND prices due to AI demand, but other components are also getting more expensive.
Omdia notes that the situation is also starting to weigh on mid-sized TVs such as 'QLED', 'QNED' and miniLED.
- "Cost pressure is also becoming apparent in mid-sized TVs. In the third quarter, the mainboard price for a 55-inch UHD LCD TV – including DRAM, NAND flash and a Wi-Fi module – reached $118.20, nearly 3.5 times the $33.90 recorded a year earlier. That figure exceeds the lowest price for a 55-inch UHD panel, which stood at $116 last month, and is approaching the average panel price of $123," wrote ETNews.
Larger TVs and premium models have more room to absorb cost increases, but some of the higher costs are likely to reach consumers through higher retail prices.
Also read: Report: Samsung to cut 'QLED' TV production by 80% – may abandon it
If you are planning to buy a new TV, it may therefore be worth doing so sooner rather than later.
Could get worse next year
The industry expects memory prices to continue to rise at least through 2027, so the situation could get worse for TV makers next year.
At the same time, Chinese display makers, who now control the vast majority of global LCD TV panel production, have notified TV makers of price increases for LCD TV panels starting in September or October.
Meanwhile, OLED TV panel prices continue to fall, making even 83-inch OLED TVs affordable. This year, a new, less expensive 'OLED SE' panel debuted, and an even lower-cost 2-layer OLED TV panel is also under development.
- Source: ETNews
