Samsung and LG are facing tough competition from Chinese TV companies. According to the latest report of Business Korea Institute, global TV sales in the first 6 months of 2022 reached 92.604 million units with a 6.6% decrease compared to the same period last year. Also, the value of televisions sold in the market decreased by 12.5% and reached 47.5 billion dollars in the first 6 months of 2022.
The total combined share of the world’s top 2 TV manufacturers, Samsung and LG, also declined. On the other hand, the total market share of their Chinese counterparts (including TCL, Hisense and Xiaomi) increased from 25.3% to 27%. It is interesting to note that TCL’s share of the market has become closer to LG. TCL’s market share in the first 6 months of 2022 was equal to 11.1%; While during the same period, LG took a 13.7% share of the market.
Samsung and LG’s focus on high-end products is the main reason for their decline in market share. Another main factor in reducing the share of Korean brands in the market is the supply of all the necessary and desirable features at reasonable prices in televisions manufactured by Chinese brands. In fact, Chinese televisions are more affordable products.
Also, some LED and LCD TVs produced by Chinese brands are comparable to the products of Korean companies. Another important issue is that now LG and Samsung are focusing on the production of old products and advanced technologies such as mini LED and 8K. Currently, Samsung and LG are the only companies producing old TV panels in the world.
LG Display dominates the global supply and Samsung Display also supplies its QD-OLED TV panels to Samsung and Sony. Although Chinese companies have significantly increased their production of old mobile panels; But they are still far behind in the production of old TV panels. Also, software experience is one of the categories that Samsung and LG have a special focus on.