Why New TV Prices Are Increasing This Holiday Season

Anyone looking to treat themselves or someone else to a new television this season could be in for a shock. That’s because TV set prices from all major manufacturers are at an all-time high. A knock-on effect of the ongoing global computer chip shortage, TVs, gadgets, and countless other electrical items are now affected.

Back in April, we looked at what a chip shortage meant for upcoming smartphones. Then, in August, we delved into the chip shortage’s impact on the latest computer graphics cards. Now, television sets are being similarly affected. Increased international shipping costs, too, have further contributed to TV prices hitting a nine-year high as demand outstrips supply.

It’s an issue that’s likely to continue right up to the holiday season, into 2022, and beyond.

In the run-up to the holidays, deals and discounts have traditionally seen television costs plummet for a period of a few weeks. This drop in prices usually happens as retailers compete for customers’ business. Unfortunately, this won’t be the case in 2021.

Some buyers may even find that their desired TV set is entirely unavailable—at any cost—until well into the New Year. And it’s not just TVs. Tech-wise, stock woes around the world continue across the board as manufacturers are forced to slow down or stop production due to a lack of vital computer chips.

Where brands such as Sony, Samsung, and LG are able to continue with production, albeit in reduced numbers, it’s not good news for pricing in any case. On average, Yahoo has reported that TV set prices are likely to be at least $100 higher than anticipated for the foreseeable future.

This means that your preferred choice of new television may well cost significantly more than you expected this holiday season. In 2020, the average price for a new TV set between October and December was $363. Between now and the end of this year, the same figure for 2021 is forecast to top $500, according to experts at market research company, The NPD Group.

Unfortunately, chip shortages and increased shipping costs mean that Black Friday tech deals will be harder to come by. As families look to pick up new televisions ahead of the holidays at already inflated prices, widespread discounts seem increasingly unlikely.

With that, expect popular models to sell for their manufacturers’ suggested retail prices or more.

All is not lost, however. Despite a deficit of chips, you should be able to find a good TV, even if it’s a different model. As it stands, prices are primarily being impacted by shipping costs from Asia and elsewhere, and the fact that demand is high and stocks are low. This means there’s no incentive for retailers to discount most of the inventory that they do have.

At the same time, though, there’s still the potential for savings among savvy shoppers looking at higher-end televisions.

Demand for new TVs is at its highest in the mid-range market, with people particularly keen to get their hands on the best-selling models. What this means is that there’s still likely to be at least some room to pick up deals on more expensive options.

For example, CNET’s TV reviewer, David Katzmaier, recently pointed out that one of his top-rated high-end models of 2021 was now available at a record low price. The 65-inch LG C1’s MSRP, he revealed on Twitter, was lowered by $300 at the beginning of October, despite being a current model.

Down from $2,100 to $1,800, that sees the LG C1 available for $100 less than even last year’s comparable set. That set was the 2020 65-inch LG CX. According to the television expert, it never fell below an MSRP of $1,900.

Still, that’s a significantly higher price than the average $363 spent on a new TV as of this time last year. It looks like most people will be paying around $100 more for many TV’s this year.

With a new television set in the home, an extended TV and home theater warranty has never been more important as prices reach an all-time high. As such, be sure to lock in comprehensive protection at the first opportunity. That said, don’t be tempted to overpay for an expensive warranty sold by a manufacturer or big-box retailer.

Choose Upsie instead and save up to 70 percent. Upsie cuts out the middleman to pass savings on to you. Further, Upsie coverage is comparable or superior to costlier options sold elsewhere. Upsie’s TV warranty packages include protection against manufacturer defects, mechanical faults, and screen burn-in, plus power, speaker, sound, and button failures.

Lastly, with policy lengths of up to five years available, Upsie’s Sony, Samsung, Element, LG, TCL, and Vizio warranties alike all feature a $0 deductible. As a result, there’s nothing to pay in the event of a claim! With fast, free, local repairs also included at no extra cost, you can’t go wrong with an Upsie warranty.