Premium TVs gain ground as manufacturers face rising component costs

Global shipments of premium televisions are forecast to rise 9.3 per cent year-on-year in 2027 even as the wider TV market contracts, according to research from market intelligence firm Omdia. Premium TVs, defined as models with an average selling price above $1,000, are expected to grow while overall global TV shipments decline 1 per cent. North America is forecast to lead the premium segment, with shipments projected to increase 21.9 per cent year-on-year in 2027, according to Omdia’s 2Q26 TV Sets Forecast Database. The shift towards higher-priced models is being driven partly by rising component costs and memory shortages, which are putting particular pressure on manufacturers’ margins in cheaper TVs. For a 65-inch LCD television selling for $300, even a relatively small increase in memory costs can significantly affect profitability or require a higher retail price. The same increase represents a smaller proportion of the selling price of premium models, giving manufacturers greater scope to absorb higher costs. With component supplies constrained, leading brands are increasingly prioritising premium models to protect long-term customer value and hardware profitability. “Component supply constraints are influencing TV manufacturers’ product strategies,” said Patrick Horner, practice leader for TV set research at Omdia. “Rising memory costs put additional pressure on low-margin models, encouraging brands to prioritise premium TVs,” he stated. “Display innovations such as RGB LED backlights support this strategy by giving consumers a clearer reason to upgrade,” he added. Omdia forecasts that RGB LED backlights will account for 49 per cent of global premium TV revenue by 2030, as manufacturers promote improvements in colour volume, localised dimming precision and peak brightness. By comparison, LCD TVs using conventional backlights are expected to account for just 2 per cent of premium TV revenue by 2030. The figures point to a growing focus on higher-value products and display technology as overall television demand weakens, with manufacturers seeking to offset cost pressures and attract consumers willing to pay for advanced features.