India's smart TV market witnessed another weak quarter, with sales volumes declining 5.7% year-on-year in the April-June (Q2) period, extending the slowdown after a 3% decline in the January-March (Q1) quarter, according to industry estimates from IDC, Counterpoint Research and channel checks.
The slowdown was more pronounced in the entry-level segment, as consumers deferred purchases following steep price increases.
According to IDC data, sales volumes of 43-inch and smaller smart TVs fell 6.8% in Q2, while sales of TVs larger than 43 inches declined 3.5%, indicating relatively better resilience in the premium segment.
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Debasish Jana, Research Analyst at IDC, said the Indian smart TV market continued to face demand pressure during the quarter as higher prices weighed on consumer purchases, particularly in the mass-market category.
Industry estimates show that prices of 32-inch to 43-inch smart TVs increased nearly 17% during Q2, significantly higher than the 6-7% increase for TVs above 43 inches. Market participants expect another price hike of up to 10% in Q3 as manufacturers continue to grapple with elevated component costs and currency headwinds, he added.
Anshika Jain, Principal Analyst at Counterpoint Research, said the sharper slowdown in smaller TVs reflects the higher pricing pressure faced by entry-level consumers. She noted that memory costs have surged significantly, making budget televisions disproportionately expensive to manufacture, while persistent inflation has also affected affordability in the mass segment.
One of the key reasons for the divergence in pricing lies in the bill of materials. Memory prices have risen nearly four-fold since December 2025, while a weaker rupee has further increased the cost of imported electronic components.
Industry executives say memory accounts for a much larger share of manufacturing costs in entry-level televisions, making the segment more vulnerable to cost inflation. In contrast, display panels constitute a larger proportion of costs in premium televisions, cushioning the impact of rising memory prices on larger-screen models.
Despite the near-term weakness, the industry's premiumisation trend remains intact. Televisions measuring 43 inches and below continue to account for around 60% of the market by volume, while larger-screen models contribute the remaining 40% as per IDC.
However, consumers are gradually upgrading to larger televisions as incomes rise and content consumption shifts towards high-definition and streaming platforms.
The industry is now closely watching the festive season, traditionally the strongest sales period for consumer electronics. However, analysts caution that another round of price hikes coupled with elevated retail inflation could weigh on festive demand, particularly in the entry-level category.
Among listed companies, Dixon Technologies, Havells India, and LG Electronics India are expected to remain in focus as investors assess the impact of slowing demand and rising input costs on the consumer electronics sector.
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