Narrowing Gap: Will Samsung Change Its Premium Strategy for Quantum Dot TVs? | BusinessKorea

Friday, October 20, 2017

The market share between quantum dot TVs and OLED TVs are narrowing.in the premium TV market.
The market share between quantum dot TVs and OLED TVs are narrowing.in the premium TV market.
SEOUL,KOREA
24 August 2017 - 12:15pm
Michael Herh

Samsung Electronics, the No. 1 global TV market share holder is stuttering along. In the first half of the year, the company posted less than 20 million units in TV sales in the first half of this year, which resulted in some forecasts that the company may record a market share of less than 20% after recording an annual market share of 20% or higher (in terms of quantity) over the past five years. Also in the premium TV market, the market share between quantum dot TVs and OLED TVs are narrowing.

According to industry and market researcher IHS Market, during the second quarter of this year, quantum dot TV sales in the global market slipped 48.2% from 671,000 units in the first quarter to 351,000 units in the fourth quarter. Meanwhile, OLED TV sales in the same period increased 29.4% from 212,000 units to 282,000 units. Although quantum dot TV sales more than tripled in the first quarter compared to OLED TV sales, the gap narrowed to 70,000 units in the second quarter. Quantum dot TVs is based on 'quantum dot' technology.

A quantum dot is a semiconductor particle, which is only a nanometer long (nm, 1 billionths of a meter). Samsung QLED TV is a representative quantum dot TV. Currently China's High Sense and TCL are rolling out TVs based on quantum dot technology. Unlike them, LG Electronics is producing OLED technology-based TVs along with Sony and Panasonic of Japan and Changhong and Skyworth of China.

This announcement is a painful result for the QLED TV camp led by Samsung Electronics. This is because the decline in sales in the premium TV market will be directly linked to a decline in brand image and profitability. Lowering premium product prices due to sluggish sales can affect low-end products’ prices, which may undermine overall profitability.

Even if the subject is not limited to premium TV, there are many pessimistic views about Samsung Electronics’ global TV market share. According to the report, TV shipments in the first half of the year decreased nearly 8% year on year to 19 million units. "If Samsung Electronics wants to maintain its market share at 20% or higher, Samsung Electronics has to ship more than 45 million TV sets this year. But it will be a big challenge.

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