Staking Their Claim
Korean companies are putting front and center premium TVs that offer special experiences in addition to delivering strong performance in order to maintain their position as the traditional powerhouses in the global TV market. This move is being made as Chinese TV makers have been waging a price war with their mid- to low-priced TVs, capitalizing on an economic downturn.
Korean TV giants such as Samsung Electronics and LG Electronics are promoting TVs to make them more than just viewing devices, according to industry sources on June 9. To widen their lead with Chinese TV manufacturers, they need to consider differentiating their TVs with more than their performance.
In the first quarter of this year, major Chinese TV makers such as HiSense, TCL, and Xiaomi had a combined market share of 29.6 percent in terms of shipments, according to global market research firm Omdia. This represented only a gap of 1.7 percentage points with Korean TV makers (32.2 percent). Korean TV industry experts believe that the technology difference between Chinese and Korean TVs is not so big, especially when it comes to LCD TVs in the low to mid price range.
Korean TV makers are focusing on the premium TV market represented by OLED and Neo QLED TVs. OLED TV leader LG Electronics has a full lineup, from the world’s smallest 42-inch model to the world’s largest 97-inch model. A customer can keep his or her TV on the desk, use it as a second TV or a monitor for gaming, or turn the living room into a movie theater. Samsung’s Neo QLED 8K TV model is the highest resolution TV currently available on the market with more than 33 million pixels. Most TV models now primarily offer a 4K resolution.
Beyond hardware, software has also become an important factor in TV market competition. One example is smart TV platforms. TV makers are looking to capitalize on this by focusing on software after moving beyond hardware. Omdia reported that smart TVs accounted for 92 percent of TVs shipped worldwide in the first quarter of this year. Samsung Electronics uses Tizen and LG Electronics use WebOS as their smart TV platforms. Samsung’s free, ad-supported streaming TV service, Samsung TV Plus, offered more than 2,000 channels in 24 countries as of 2022. LG Channel has 48 million subscribers in 29 countries.
Another new trend in the TV market is the emergence of lifestyle TVs that look like furniture and enhance interior harmony. LG Electronics introduced Posé, a TV with a fabric backing that allows it to be placed in the middle of the living room as an interior piece without being attached to the wall. Samsung’s The Frame also allows TVs to be used as picture frames when not in use.