It is reported that Xiaomi is increasing the price of its smart TVs including Mi TV and Redmi TV in India. According to the Indian media, the price will be hiked by 3% to 6% and the new value will be applicable from today (July 1).
As per the ET Telecom report, this TV price hike is the third price hike in the last six months. Several companies have already increased the price of their televisions by 10% to 12%. This year is the highest price hike for televisions.
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TV is one of the largest segments under the entire domain of appliance and consumer electronics. It accounts for a volume of almost 17 million with an estimated sale value of almost ₹25,000 crores.
Reason behind the Price Hike
It is said that the main reason for the price hike is due to the prolonged shortage of ‘Open Cell’ (panel) shortage globally. ‘Open Cell’ accounts for almost 70% of the cost of a television. India mostly imports them from China and Vietnam.
This, coupled with an unprecedented increase in shipping charges, has affected almost all the technology players, including Xiaomi.
Smartphone Price Hike
Recently Xiaomi India raised the cost of Redmi Note 10 and Note 10 Pro by Rs 500. The cost for the Note 10 Pro has only hiked once but for the vanilla Redmi Note 10, it has been increased three times, which means the phone has faced a total price hike of Rs 1500.
This was due to the increase in the price of supplies. As per industry experts, the cost of chipsets, battery packs, and others (camera modules, sensors) has increased by 20%, 10%, and 5%.
Besides, Xiaomi is the leading smartphone as well as Smart TV brand in India. It is known for its affordable products there. But if the trend of price hike continues, it may affect the Xiaomi product demand, according to Debasish Jana, the research analyst at Counterpoint Research.
