TV Sales Set to Dip as Costs Rise Amid West Asia Tensions — Here’s Why

The TV manufacturing industry, which already faces increasing prices of memory chips (RAM), is bracing for a reduction in sales due to the rising cost of plastics to ocean freight on account of ongoing geopolitical tensions in West Asia.

Citing manufacturers, PTI reported that they are also flagging concerns over a potential downtrading trend as buyers shift towards smaller screen sizes amid rising prices. Moreover, rupee depreciation has pushed up overall production costs, leading to higher television retail prices.

Larger brands have absorbed some cost pressure. Moreover, some companies have not passed on the entire cost increase, trying to maintain their market share in the Indian TV market considered to be highly competitive.

In addition, consumers are also delaying their purchases; however, some recovery is expected in the festive season in the second half of the year.

Some manufacturers have said that early signs of downtrading are showing up in the TV market. Price-sensitive customers are switching to smaller screens, while others are still upgrading through higher EMIs. They said that easy financing options are helping to keep demand steady, and that payments help to offset price increases. Prices are getting close to where they were before the GST, but companies haven't fully passed on the higher costs of inputs.

Counterpoint Research said India's TV market is facing a demand dip "with shipments set to fall 5-6 per cent in Q1 and 3–5% in Q2 2026 as rising RAM costs, freight challenges due to geopolitical issues, and rupee depreciation are pushing prices up." The vertically integrated brands, such as Samsung, are better positioned to absorb cost pressures, Anshika Jain, Principal Analyst at Counterpoint Research told PTI.

On the demand side, consumers are delaying purchases and prioritising essentials over discretionary spending.

However, Jain also mentioned that she does not see "a broad downgrading trend" in screen sizes in India.

The upgrade cycle may be longer now, and consumers are increasingly opting for bigger displays when they do upgrade, Jain added.

Global Electronics Demand Slowdown

Global consumer electronics demand is expected to remain subdued in 2026, with worldwide sales projected to dip slightly by year-over-year following a temporary 2025 recovery, according to the NielsenIQ (NIQ) 2026 Consumer Tech & Durable Goods Outlook, in collaboration with the Consumer Technology Association (CTA).

The World Trade Organization also noted that geopolitical tensions and freight disruptions are raising input and logistics costs, weighing on manufacturing and consumer demand worldwide.