Korean Media: Samsung TVs Have Been the Global No.1 for 19 Consecutive Years, Will They Be Disrupted by Chinese Brands?

On July 20, the Korean media "Korea Economic Daily" published an article stating that Chinese companies are closely following Samsung Electronics, which has led the global television market for 19 consecutive years. The rapid growth of shipments in the high-end television market by Chinese companies is posing a threat to Samsung Electronics.

According to data from market research company Counterpoint Research, global shipments of high-end televisions increased by 44% and sales increased by 35% in the first quarter of this year. The growth in shipments and sales was driven by ultra-large size televisions. Shipments of high-end televisions of 75 inches and above increased by 79%, and sales increased by 59%.

Among them, the shipments of Chinese companies TCL and Hisense increased by more than double during this period, contributing significantly to the overall growth in shipments.

Hisense's shipment market share reached 20% in the first quarter, up 6 percentage points from 14% in the same period last year, and its sales market share also rose from 13% to 17%. TCL's shipment market share also increased from 13% to 19%, and its sales market share increased by 3 percentage points to reach 16%.

Analysts believe that as the Chinese market grows, TCL and Hisense are expanding their market shares in the overall market.

Counterpoint said, "The government encourages the replacement of old TVs with new ones, plus active promotions by domestic brands, have caused the sales of high-end televisions in China to surge by three digits. Chinese consumers are buying larger sizes, higher prices, and more advanced display technology televisions."

Chinese companies are continuously expanding their scale, and at the same time, they are eroding the market share of Samsung Electronics and LG Electronics. Samsung Electronics and LG Electronics focus on OLED TVs, while Chinese companies are weakening the position of OLED in the high-end market by vigorously promoting ultra-large Mini LED TVs.

TCL first introduced Mini LED TVs in 2019. Two years later, in 2021, Samsung Electronics also launched Mini LED TVs and quickly captured the market. Samsung Electronics had been leading the Mini LED TV market until 2023.

Last year, TCL, Hisense, and Xiaomi surpassed Samsung Electronics. In the first quarter, Samsung Electronics ranked fourth in shipments and third in sales, falling behind Chinese companies.

Chinese companies have not engaged in direct competition in the OLED field, but instead adopted a strategy of using the country's leading LCD production technology to ensure cost competitiveness and launching ultra-large Mini LED TVs ahead of others. This strategy is difficult for Korean companies to imitate.

Counterpoint said, "Consumers are increasingly proving that these strategies of Chinese brands are correct. Mini LED TVs usually compete with OLED TVs in the same price range, but the cost difference between OLED panels and LCD panels forces consumers to choose between smaller OLED TVs and larger Mini LED TVs. Therefore, more and more consumers are choosing Mini LED TVs."

Original article: https://www.toutiao.com/article/1838166899822664/

Statement: This article represents the views of the author.