Samsung Electronics and LG Electronics maintained their market dominance in the first quarter by retaining 1st and 2nd place in the global TV market, but Chinese companies are in full pursuit with their ‘price competitiveness’ strategy. 

According to market research firm Omdia, the global TV market share of Samsung Electronics in the first quarter was 29.3%, a decrease of 2.6%p from the same period last year (31.9%). Similarly, the market share of LG electronics also fell from 17% to 16.6%, a decrease of 0.4%p. 

This trend is attributed to the global economic slowdown, which led to the shrinkage of the TV market. As a matter of fact, global TV shipments in the first quarter was 46.4215 million units, which was the lowest since the first quarter of 2009. 

The lingering issue is that while the influence of Samsung Electronics and LG Electronics are still significant, the challenge by Chinese companies are also considerable. 

For market shares in terms of sales revenue by brands for a 75 inch TV, Samsung Electronics held the top position with a share of 29.6%. However, this is a steep decline from the first quarter of last year with a share of 38.4%, a decrease of 8.8%p. LG Electronics held the second place with a share of 16.2% during the first quarter of last year, but fell to the fourth place in the first quarter of this year with a share of 14.1%. 

Meanwhile, the market share of Hisense (15.7%) and TCL (14.9%) are steadily increasing. The combined market share of Samsung Electronics and LG Electronics decreased from 48.9% in the first quarter of last year to 45.9% this year in the same quarter, but the market share of Chinese companies increased from 19% to 22.3%, reflecting this trend. 

The industry is concerned about the capabilities of the Chinese companies, which dominated the liquid crystal display (LCD) market in the past, 

The industry is concerned about the possibility of increasing capabilities by Chinese companies in the large-sized TVs, having witnessed their dominance in the liquid crystal display (LCD) market. Chinese companies have retained the first place in the global display market since 2021. This market was once dominated by Samsung Electronics and LG Electronics. 

The pursuit by China has been intensifying. According to the Korea Display Industry Association, the market share in the display industry of China was 47.9%, whereas Korea’s was 33.4%. 

Analysis by the industry suggests that Chinese TV companies were able to secure competitive prices by obtaining LCD panels at reduced costs from the help of local display companies. 

In response, domestic companies like Samsung Electronics and LG Electronics are targeting the high-end TV market. Market shares of TVs with a price of over $2,500 (3.4 million Korean Won) in the first quarter for Samsung Electronics and LG Electronics reached almost 82%. This value is significantly higher than the competition, with TCL at 1.1% and Hisense at 0.7% in the same quarter. 

Especially, the market share of Samsung Electronics in the first quarter was 53.2%, accounting for more than half of the total market share. 

LG Electronics held the second place at a market share of 28.8% in the same period, an increase of 9.2%p from the first quarter of last year at 19.6%. This result comes from LG Electronics strengthening the lineup of organic light emitting diode (OLED) TVs and premium LCD TVs. 

For Samsung Electronics, which re-entered the OLED market in 2022, the company claimed 2nd place in the first quarter with a market share of 27.0%, surpassing Sony’s market share of 12.8%. The company was able to increase the market share in only two years. Recently, they have introduced budget OLED TVs in the US and the global market, aiming to increase sales. 

Industry insiders note, “The influence of Samsung Electronics and LG Electronics in the premium market are still significant,” adding that “While the pursuit by China are beginning to take shape, the competitiveness of the domestic companies in the premium market remains strong.”

Written by Cho Woo Hyun

Translated by Lee Dong Jae