Samsung Electronics recently lowered its target TV sales volume for this year by approximately three million units to 45 million after its sales performance for the first half of this year fell short of expectations, according to industry sources.
LG Electronics recently did so as well. Previously, LG Electronics set 105% of last year’s sales volume as this year’s. Last year, the company sold about 28.2 million TV sets.
Their downward adjustments are because the global TV market is showing signs of slowing down these days as demands for TV in China, the largest market in the world, are dropping. Experts are estimating that the size of the market, which reached 219.2 million units last year, is likely to show a decline of 10% this year. In the second quarter of this year, the LCD TV sales volume fell approximately 1% to 47 million units or so. In the previous quarter, the global LCD TV shipments totaled 44.5 million units, down 8.4% from a year ago.
Another reason is an intense competition with Japanese and Chinese TV manufacturers. According to market research firm IHS, Korean TV manufacturers’ market share fell 1.3% in the second quarter, when those of Japanese and Chinese rose 1.1% and edged down by 0.04%, respectively. Specifically, Sony’s market share jumped from 4.1% to 6% between January and June this year and that of Sharp rose from 3.7% to 4.1% during the same period. At present, Sony is aiming to reach 10% before the end of this year and Sharp is aiming to sell at least 20 million TV sets in 2020.