In the premium TV product line, Samsung Electronics’ market share in the Mini Light Emitting Diode (LED) TV market has significantly dropped this year. While Samsung, which had an overwhelming market share, experienced a decrease in shipments, Chinese companies like Hisense and TCL increased their sales, aggressively catching up. The competition between South Korean companies focusing on Organic Light Emitting Diodes (OLED) and Chinese companies leading in Mini LED is expected to intensify in the premium TV market.
According to Display Supply Chain Consultants (DSCC) on Dec. 21, Samsung Electronics had a 39% market share in the global Mini LED TV market until the third quarter of this year. Chinese companies Hisense (27%) and TCL (26%) followed closely. Sony (4%) and LG Electronics (1%) were ranked fourth and fifth, respectively.
Until last year, Samsung Electronics dominated the market with over a 70% share, mainly because of Neo QLED. However, this year, its market share significantly dropped due to a 26% decrease in shipments compared to the previous year. During this period, Hisense and TCL increased their market shares by significantly boosting their shipments. Hisense’s Mini LED TV shipments increased 18-fold in just one year, and TCL’s shipments grew by 112% compared to the same period last year.
Mini LED TVs are Liquid Crystal Display (LCD) TVs that incorporate densely packed LEDs of 100-200 micrometers in size around the backlight, serving as a light source. They can be considered premium LCD TVs with improved contrast and the technology’s other traditional disadvantages.
The rise of Chinese companies is a result of dominating the LCD panel market. Over the past 3-4 years, as the Mini LED market blossomed, a supply chain for Mini LED components was established in Chinese-speaking regions, solidifying the price advantage of Chinese TVs. TCL, through its display subsidiary CSOT, has successfully vertically integrated complete products and displays, ensuring a stable supply of LCD panels.
Chinese companies are expected to challenge the dominance of Samsung and LG Electronics in the premium TV market, leveraging their strengthened position in the Mini LED TV market. In the third quarter, Mini LED TV shipments in the premium market increased by 26% year-over-year to 905,000 units, closely following OLED TVs (1.36 million units). DSCC analyzed that “in the premium TV market, Mini LED product lines have emerged as competitors to OLED TVs.”
The advancement of Mini LEDs in the limited premium market inevitably threatens domestic companies. Last year, TCL surpassed LG Electronics for the first time in annual TV market shipments, securing the second position. This year, Hisense has risen to third place. Samsung Electronics and other domestic TV manufacturers, like LG Electronics, plan to respond to the competition with Chinese companies, which adopt a low-price strategy, by leveraging their technological advantages.