Due to COVID Revenge Spending... Samsung and LG TV Sales 'Explode'

[Asia Economy Reporter Changhwan Lee] It has been found that TV sales of Samsung Electronics and LG Electronics are significantly increasing. It is analyzed that the suppressed demand due to the COVID-19 pandemic has recently exploded mainly in the United States and Europe.

According to the electronics industry and KB Securities on the 22nd, Samsung Electronics' TV shipments this month are estimated at 4 million units, a 90% increase compared to the previous year, and LG Electronics' shipments are estimated at 2.6 million units, a 38% increase.

The combined TV shipments of the two companies amount to 6.6 million units, a 65% increase compared to the previous year. Following last month's combined shipments of 5.42 million units, which was a 23% increase year-on-year, it is expected that this month will also record explosive growth.

The surge in TV sales is attributed to the resumption of economic activities in major TV markets such as North America and Europe since last month. In particular, the U.S. government provided COVID-19 disaster relief payments of up to $3,400 for a family of four, which led to pent-up consumer sentiment being directed toward major home appliances including TVs, washing machines, and refrigerators.

Since the beginning of this month, some Best Buy stores, the largest home appliance retailer in the U.S., have sold out Samsung Electronics and LG Electronics 55- and 65-inch TVs, causing a situation where consumers want to buy but cannot. Outside of large-scale discount events like Black Friday, it is rare for TVs to sell out in the U.S.

Due to the overall economic downturn caused by COVID-19, TV panel prices have dropped significantly, which is also considered a major factor in increased sales. LCD TV panel prices sharply declined around April, when COVID-19 began in earnest, but have recently rebounded as TV sales increased.

Dongwon Kim, a researcher at KB Securities, explained, "As of this month, the average prices of Samsung Electronics and LG Electronics 55-, 65-, and 75-inch TVs have fallen by 48% compared to the previous year, which is considered a catalyst for TV demand," adding, "Currently in the U.S., the price of three large TVs has dropped to be similar to the price of one latest iPhone."

The industry expects the strong TV sales to continue into the second half of the year. This is because consumer sentiment is reviving with the resumption of economic activities, and demand for premium TVs is expected to continue due to the activation of remote work and the untact economy.

Market research firm Omdia forecasted that global TV shipments in the third quarter of this year will reach about 50.5 million units, a 17% increase compared to the second quarter. It also predicted that shipments will reach 63.54 million units in the fourth quarter.

Thanks to the recovery in TV demand, it is analyzed that the performance of Samsung Electronics and LG Electronics' home appliance divisions is also greatly improving. Samsung Electronics' Consumer Electronics (CE) division is estimated to have achieved an operating profit of around 700 billion KRW in the second quarter, which greatly exceeds market expectations. During the same period, LG Electronics' HE (TV) division is also reported to have performed well. The industry expects further improvement in performance in the third quarter.

This content was produced with the assistance of AI translation services.