Samsung and LG Once Again Dominate TV Markets

Global TV markets could not escape a trend of degrowth even in first half of 2016.

Although they were expecting huge sporting events such as Olympics and Euro 2016, they did not help much in increasing number of demands. However in the midst of markets shrinking, Samsung Electronics and LG Electronics were able to make profit and sell large amount of supplies by using premium strategies.
According to a market research company called WitzView on the 8th, shipments of LCD TVs globally during first half of this year, which are 96.78 million, are reduced by 3.7% from shipments during first half of last year when 100.45 million TVs were shipped.
After reaching a peak in 2014, global TV markets have started to go through downward trend. There were again concerns about a possible reduction of markets this year and number of shipments during first half of this year reduced as expected. 

“Sporting events such as Olympic and Euro 2016 did not have much impact on TV markets.” said WitzView.
Samsung Electronics and LG Electronics have remained their positions again as number 1 and 2 respectively in this year. Shipments of Samsung Electronics in first half of 2016, which are 21.10 million, slightly increased from shipments in first half of 2015 when 20.99 million TVs were shipped. Shipments of LG Electronics in first half of 2016, which are 13.60 million, decreased by 7% from shipments in first half of 2015 when they shipped 14.60 million TVs. However considering a fact that sales volume of OLED TVs in this year is higher than last year, there won’t be too much of a difference in shipments in this year compared to last year for LG Electronics. 

Not only did Samsung Electronics and LG Electronics maintained their shipments but they also greatly improved their profitability. They recorded high operating profits as Samsung Electronics and LG Electronics put out SUHD TV with 2nd Generation Quantum-Dot technology and OLED TV, Ultra, OLED TV, and UHD TV respectively. VD (Video Display) Business Department, which is in charge of TV business, played a huge role in helping Samsung Electronics’ CE (Consumer Electronics) Business Department making more than $903 million (1 trillion KRW) in operating profits during second quarter. LG Electronics’ HE (Home Entertainment) Business Headquarters recorded made its greatest history by making 7.7% and 8.6% in operating profit ratio in first quarter and second quarter respectively. 

Excluding Samsung Electronics and LG Electronics, positions for other global TV manufacturers shook up a little bit. While shipments for Chinese TV manufacturers decreased, SONY took a step forward little bit by increasing number of their shipments.
In first half of last year, China’s TCL and Hisense were number 3 and 4 respectively followed by Samsung Electronics and LG Electronics and SONY was number 5. While Hisense and TCL changed their positions in first half of this year, SONY is remained as number 5. However SONY rose to number 4 in second quarter of this year. Just from looking at shipments in second quarter, differentials between Hisense, SONY, and TCL has become narrower as their shipments were 2.71 million, 2.65 million, and 2.6 million respectively. 

It seems that changes in Chinese Government’s policy on subsidy and prices of panels affected Chinese TV manufacturers’ performance.
“Fact that Chinese Government lowered its subsidy affected its TV manufacturers in second quarter and they were not able to increase number of shipments as prices of panels increased.” said a representative for a South Korean TV manufacturer. “Unlike them, Samsung Electronics and LG Electronics were able to maintain their positions by putting out premium products.”
Staff Reporter Kwon, Keonho | [email protected]