TVs to cost 10% more as open cells get costlier

Smartphone costs could go up, as open cells constitute 18-30% of the total cost.

- SHARLEEN D'SOUZA & ARYAMAN GUPTA

 

Television (TV) manufacturers have started to hike prices as open-cell prices get costlier. Laptops and smartphones may see price increases as well. The price of open-cell panels has gone up 15 per cent on average and is even higher for big-screen TVs, according to manufacturers.

One of the main components in the manufacturing of TV sets, open cells contribute to 60-65 per cent of the manufacturing cost.

While open cells are used in the manufacturing of mobile phones, their contribution is relatively lower when weighed up against TVs.

Also, premium phones have huge margins due to which the price increase is typically absorbed by the brand.

"Last year, prices of open cells were depressed. Prices have been on the rise since the start of this calendar year. Since January, prices have gone up 15-17 per cent," says Atul Lall, managing director (MD), Dixon Technologies (India).

For 32-inch TVs, the price of an open cell had dropped to about $27 per panel last year.

Since the company is into contract manufacturing, it passes on the entire price increase to its client.

Lall explains that there has been a consolidation between four to five-panel manufacturers in China, causing prices to spiral. Super Plastronics, which is a Kodak brand licensee, is also hiking the prices of its TV sets by 10 per cent from June.