The once undisputed leader in the premium ultra-large-screen TV market, Samsung Electronics, is losing ground under the onslaught of Chinese brands such as TCL and Hisense, writes the South Korean portal The Chosun Daily.
Image source: TCL
TCL, China’s leading TV brand, overtook Samsung in the 80-inch-plus TV market for the first time in the second quarter of 2024, maintaining its lead in the third quarter with a 23% market share, according to market research firm Omdia on Dec. 19. Another Chinese electronics manufacturer Hisense has come close to Samsung in this market, narrowing the gap in market share from 11 percentage points this year. to just 1.65 p.p. Last year, Hisense displaced LG Electronics from third place. Samsung’s share fell from 26% in the third quarter of last year to 19% this year.
Consumers have changed their attitude towards TVs produced in China, which were once considered “cheap and low-quality.” Experts agree that in the segment of televisions with liquid crystal panels, the technological gap between Chinese and Korean products is practically not noticeable. Chinese companies have even gained an advantage in some areas, such as launching ultra-large 100-inch TVs and equipping premium models with advanced artificial intelligence (AI) processors.
«Chinese TV makers have leveraged their dominant position in the LCD panel supply chain to develop ultra-large products at competitive prices, an Omdia spokesperson said. “The difference in image quality is barely noticeable to the naked eye, which is why low-cost Chinese products are becoming increasingly popular among consumers.”
According to research firm DSCC, during Black Friday sales last month, a Hisense 100-inch TV was available for $1,599, while a TCL 98-inch Mini LED TV was available for $2,900, while a 98-inch Mini LED TV was available for $2,900. Samsung was $8997.
However, based on revenue, Samsung’s share of the premium TV market fell from 40% in the third quarter of last year to 31% this year, while TCL’s share rose from 9 to 18% over the same period.
Experts note that it is becoming increasingly difficult to compete with Chinese brands in the field of television equipment. “Given Chinese government subsidies and low production costs, it is almost impossible for Korean companies to lower prices to the level of Chinese brands,” an industry insider said.
The industry is currently exploring alternative sources of revenue growth. According to many experts, the future lies in software, not hardware. But in this direction, Chinese brands have already succeeded and are quickly catching up with Korean companies.