(Our Tech Blog) K86S2AJAHV8G Consumer electronic companies in India are bracing for a possible rise in prices of key components, such as flat panels, semi-conductors and chip sets, following the twin disasters of the earthquake and tsunami that struck the north of Japan on March 11. This is likely to push up the prices of products such as liquid crystal display (LCD) TVs and light-emitting diode (LED) TVs, which use these components.Japan accounts for close to 20 per cent of the world’s LCD/LED panel production. Semi-conductor production is also close to 20 per cent, say industry sources.
While most companies at the moment are not facing a supply crunch, owing to almost 60 days inventory that they hold, the trouble may start a few months down the line.
Pranay Dhabai, managing director, Akai India, says he is monitoring the situation closely. Akai imports close to 40 per cent of its sales requirement from countries such as Thailand, Malaysia and China. The imports are of finished products across categories such as LCDs, LEDs, DVD players, home theatre systems, etc.
The situation is no different with companies such as Panasonic, Sony and Toshiba, which import finished products such as refrigerators, television sets, washing machines and air conditioners from these markets.
“Barring LCDs, which are assembled locally, we import everything else,” says Manish Sharma, director, marketing, Panasonic India. “We are facing no problems, as much of our production of finished products has moved out of Japan. What is located in Japan are plants that manufacture high-end digital cameras. But we have secured supplies of these products for the next few months, as we propose to launch in May this year.”
Toshiba’s head of consumer electronics in India, Pranab Mohanty, also echoes a similar sentiment.
Most consumer electronic makers have benefiited in the last one year from low panel prices, owing to rapid upgradation of technology. On an average, panel prices have dropped by 10-15 per cent in the last one year. Manufacturers were, in turn, able to pass this to consumers, which reflected in the deep discounts that flat panel TVs attracted in the last one year. With a supply-side crunch of components, an overall impact on finished products is likely to be there, which could hurt demand, says Dhabai.
Flat panel TVs have been growing at a clip of about 70 per cent over the last two years. It currently is a 3.6-million unit market, slated to cross six million units by the end of this year.
source: http://www.consumercomplaints.in/news/lcdled-panel-prices-may-shoot-up.html