Chinese TVs, once dismissed as “cheap and low-quality,” are making strides in the premium market, overtaking Samsung Electronics, the world’s top TV manufacturer. TCL, a leading Chinese TV brand, surpassed Samsung in the 80-inch and larger TV market for the first time in the second quarter. Another Chinese electronics company, Hisense, is closely trailing Samsung in this market.
TCL maintained the lead in the 80-inch and larger TV market in the third quarter with a 23% market share( based on shipments), surpassing Samsung Electronics for the second consecutive quarter, according to market research firm Omdia on Dec. 19.
Samsung’s share fell from 26% in the third quarter of last year to 19% this year. Hisense is also closing in on Samsung, narrowing the market share gap from 11 percentage points to just 1.65 points over the past year. LG Electronics is facing similar challenges, losing its third-place market share position to Hisense last year.
Consumers no longer perceive Chinese TVs as merely cheap. Experts agree that in the liquid crystal display (LCD) TV segment, the technological gap between Chinese and Korean products is little to no different. Chinese companies have even gained an edge in some areas, such as launching ultra-large 100-inch TVs and equipping premium TV products with advanced processors that boast artificial intelligence (AI) capabilities.
“Chinese TV makers have leveraged their dominant position in the LCD panel supply chain to develop ultra-large products at competitive prices,” said an Omdia representative. “The difference in picture quality is barely noticeable to the naked eye, which is why budget-friendly Chinese products are becoming increasingly popular among consumers.”
During Black Friday sales last month, Hisense’s 100-inch TV was priced at just $1,599, while TCL’s 98-inch mini-LED TV was available at $2,900. Samsung’s 98-inch mini-LED TV was priced at $8,997 during the same period, according to market research firm DSCC. These price disparities are driving more consumers to choose Chinese TVs.
Chinese TV makers are now pursuing upscale strategies to secure their place in the premium TV market. After spending years focusing on boosting shipment with affordable models, they are now gaining competitiveness in the ultra-large premium TV market, directly competing with South Korean manufacturers. In terms of revenue, Samsung’s share in the premium TV market dropped from 40% in the third quarter of last year to 31% this year, while TCL’s share jumped from 9% to 18% over the same period.
Korean consumer electronics companies are bracing for headwinds as Chinese competition intensifies amid growing political and geopolitical uncertainties. The prevailing view is that competing with Chinese brands with TV hardware is becoming increasingly difficult. “Given China’s state-backed subsidies and low manufacturing costs, it’s almost impossible for Korean companies to lower prices like Chinese brands,” said an industry insider.
The industry is now exploring alternative revenue streams. Many experts believe the future lies in software and operating systems rather than hardware. “However, even this shift presents challenges, as Chinese brands are quickly catching up in software capabilities.”
