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25 December 2024

Samsung Faces Declining TV Market Share Amidst Chinese Competition

TCL and Hisense gain ground, pressuring Samsung's traditional dominance as market dynamics shift.

Samsung Electronics is witnessing significant changes within the television market as competition intensifies from Chinese manufacturers like TCL Technology and Hisense. This shift has resulted in Samsung's market share for large TVs, particularly those 80 inches or greater, falling considerably.

According to data from market research firm Omdia, as of the third quarter of 2024, TCL captured 23% of the market share for larger televisions, up from 9% the previous year. During the same period, Samsung saw its market share drop from 26% to 19%, indicating not just a struggle for market dominance but also highlighting the growing strength of Chinese competitors.

Hisense is not far behind, achieving almost parity with Samsung, now holding just 1.65% less market share compared to Samsung's decline. The overall market dynamics have shifted significantly, with LG Electronics also losing ground, overtaken by Hisense.

The decreasing numbers for Samsung can be attributed to several factors—primarily the prowess of Chinese companies, which have mastered supply chain efficiencies and leverage lower production costs to provide competitive pricing without sacrificing quality. During Black Friday sales, for example, TCL's 98-inch mini LED television was priced at approximately $2,900, whereas its competitor from Samsung was nearly $9,000.

Market analysts attribute the rapid ascent of companies like TCL and Hisense to their government subsidies and favorable operational costs, making it difficult for traditional Korean brands like Samsung to compete effectively.

Analysts note, "Samsung’s share of the large-screen TV market dropped from 40% to 31% year-over-year, highlighting the pressure it faces.” The technological gap between Chinese brands and those from Korea is diminishing, leading to increased innovations on the part of the former. Both TCL and Hisense are now introducing high-end models featuring AI-driven processors, making their offerings more appealing.

Samsung's decline is foreboding, but it prompts industry experts to suggest alternative avenues for revenue, especially focusing on software and operating systems. There’s growing consensus among them: "Some believe software and operating systems could be the true future, not just hardware" as the key front for competition.

With these shifting tides, Samsung must innovate and explore its software capabilities if it hopes to reclaim market leadership or at least stabilize its current position. The battle for supremacy is not just about producing hardware anymore; it's increasingly about how smart and capable the technology can become.

The competition continues to heat up as industry analysts keep their eyes peeled for which company will adapt most effectively as consumer preferences shift. For now, the rise of TCL and Hisense poses an imminent challenge not only to Samsung but to the entire traditional electronics market.

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