Chinese televisions, once regarded as "bargain basement" products, have shocked the market by surpassing Samsung Electronics, the world's No. 1 television manufacturer, as they experience rapid growth in the premium segment. Chinese television brand TCL has taken the lead in the 80-inch and larger TV market, overtaking Samsung Electronics for the first time in the second quarter of this year. Another Chinese corporation, Hisense, is closely pursuing Samsung Electronics in this market.
According to market research firm Omdia on the 19th, TCL also recorded a 23% market share (based on shipments) in the 80-inch and larger TV market in the third quarter of this year, surpassing Samsung Electronics for two consecutive quarters. Samsung Electronics' shipment market share has decreased from 26% in the third quarter of last year to 19% in the third quarter of this year. After falling behind TCL, its market gap with third-place Hisense has also dramatically decreased from 11 percentage points to 1.65 percentage points in a year. LG Electronics, which was surpassed by Hisense last year, is in a similar situation.
Global consumers no longer treat Chinese TVs as "cheap" products. Industry experts unanimously note that the technology gap between LCD (liquid crystal display) TVs from Korean corporations such as Samsung Electronics and LG Electronics and their Chinese counterparts is nearly negligible. Chinese brands are showcasing 100-inch ultra-large TVs ahead of domestic brands and are equipping premium products with high-performance processors emphasizing artificial intelligence (AI) functionality. An Omdia representative stated, "As the LCD panel supply chain shifts to China, Chinese TV manufacturers have significantly improved their technology in ultra-large products based on their competitive panel pricing, and the visual quality differences are minimal, making the value-for-money appeal of Chinese products increasingly popular."
During this year's largest consumer season, the Black Friday event, Hisense's 100-inch TV was sold for just $1,599 (approximately 2.3 million won). The price performance of Chinese products in mini-LED TVs, which have significantly improved performance compared to existing LCD TVs, was overwhelming. According to market research firm DSCC, Samsung Electronics' 98-inch mini-LED TV sold for $8,997 (approximately 13 million won) during this period, while TCL's 98-inch mini-LED TV was only $1,999 (approximately 2.9 million won). It is a natural outcome for consumers to open their wallets for larger yet cheaper Chinese TVs.
Chinese TV manufacturers are now actively pursuing a high-end strategy. Having spent years focusing on increasing shipment market share through low-cost models, they are now establishing competitiveness in the ultra-large premium TV market, challenging the revenue-driven strategies of domestic corporations. Samsung Electronics' revenue share decreased from 40% in the third quarter of last year to 31% in the third quarter of this year, while TCL jumped from 9% to 18% during the same period.
Amid a worsening business environment as the year comes to a close, the Korean electronics industry's concerns are deepening. There is a prevailing judgment that it is increasingly difficult to compete with China using only TV hardware. A TV industry insider noted, "Considering the Chinese government's subsidies and manufacturing costs, it is a reality that Korean corporations cannot lower product prices as drastically as China does, and we believe that diversifying revenue through operating system (OS) platform businesses that emphasize software competitiveness is essential for survival, but it is only a matter of time before China catches up."
Korean industries have already ceded markets to China's low-cost onslaught and high-end strategies in various fields, including LCD and basic chemical products. This has been followed by painful restructuring. The electronics industry is at a critical crossroads, determining whether it can regain its lead in the new year or become another industry overtaken by China.