TrendForce "Global TV Shipments Down 2.1%... Samsung Decreases by 9.8%"

Chinese TV Companies Increase Shipments with Mid-to-Low Price Strategy

While global TV shipments are expected to decrease by 2.1% compared to last year, industry leader Samsung Electronics is forecasted to experience a larger decline of 9.8%.

On the 28th, market research firm TrendForce diagnosed that global TV shipments could fall below 197 million units for the first time this year. They predicted a 2.1% decrease compared to last year's shipments. This is due to weakened consumer spending caused by high interest rates in the US and Europe and a downturn in China's real estate market, leading to sluggish TV demand. Additionally, rising TV panel prices have led manufacturers to reduce promotions, contributing to the shipment decline.

[Image source=Yonhap News]

TrendForce noted that although the fourth quarter, which includes shopping seasons like Black Friday, is generally considered the peak season for the TV market, this year’s fourth-quarter TV shipments are expected to be around 54.55 million units, a 1.7% decrease compared to the same period last year. This is anticipated to be the lowest record in the past decade.

Samsung Electronics, which holds the number one share in the global TV market, is expected to be significantly impacted. TrendForce forecasts Samsung’s TV shipments this year to be 36.3 million units, a 9.8% decrease from last year. Although Samsung is expected to maintain its top industry position, its market share is projected to drop by 1.2 percentage points to 18.5%.

Due to inflation in the US and Europe, Samsung has seen declines in shipments of 8K, Mini LED, and OLED TVs, affecting mid-range to high-end product segments. However, Samsung’s QD OLED TV shipments are estimated to have increased by 153% to about 890,000 units, raising Samsung’s OLED TV market share to 16.6%, according to the analysis.

Another Korean brand, LG Electronics, is also expected to see OLED TV sales drop by nearly 30% year-on-year, with total shipments decreasing by 7.4% to approximately 22.91 million units. On the other hand, among the top five brands, Chinese companies Hisense and TCL, ranked second and third respectively, recorded shipment increases of 12.4% and 16.3%, reaching 27 million and 26.2 million units. Despite the global TV demand slump, they have succeeded in increasing shipments and market share through mid-to-low price strategies.

TrendForce anticipates that TV demand recovery next year remains uncertain, leading manufacturers to improve profitability by increasing the proportion of large TVs and accelerating the discontinuation of loss-making models. Next year’s TV shipments are expected to rise slightly by 0.2% to around 197 million units, considering sports events such as the Paris Olympics. However, they added that further deterioration of the global economy due to geopolitical conflicts could pose a potential risk factor for a decline in TV shipments next year.

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