Amazon Reportedly Preparing to Jump into TV Market

Global retail giant Amazon is reportedly planning to enter the TV market. According to U.S. economic media outlet Business Insider, Amazon is planning to introduce 55- to 75-inch models to the U.S. market

Amazon has been internally preparing to launch its TV models for more than two years. Amazon is expected to load its artificial intelligence (AI) platform called "Alexa" into its TVs and outsource design and production to China's TCL.

Amazon has already been selling Amazon Basics TVs in India since 2020. In addition, it has launched Insignia TVs with Amazon software in cooperation with Best Buy, a U.S. electronics store. Toshiba has been in charge of their production.

Amazon is also developing its own TV model. However, its release date has not been confirmed.

Amazon's move is seen as a strategy to expand its ecosystem. Many experts regard it as a move to strengthen Amazon’s ecosystem, which includes an e-commerce platform, online video service Amazon Prime Video, AI platform Alexa and streaming device Fire TV Stick.

"A new Amazon TV model implies that Amazon will directly compete with TV powerhouses such as Samsung Electronics and LG Electronics," said the Verge, an IT media outlet. "Amazon seems to be strengthening efforts in the TV field."

Industry analysts expect Amazon to aggressively sell products through its strong distribution platform. “Amazon TVs will be released ahead of the year-end and New Year's shopping season, when traditional TV sales soar,” SamMobile said. "It can affect TV sales of manufacturers selling TVs through the Amazon platform. Amazon is well known for actively promoting its own brand products at the expense of other brands.”

However, some observers say that it will be difficult for Amazon to change the TV market landscape as TVs require a high level of technology. The global TV market is led by Korean companies such as Samsung Electronics and LG Electronics, which accounted for 31 percent and 19 percent, respectively, of the global TV market in the first half of 2021. The two Korean TV giants maintain wide gaps with Japan's Sony (9.3 percent), China's TCL (7.4 percent) and HiSense (7.3 percent).