With global TV shipments hitting a 10-year low last year, the TV market is predicted to continue sluggish growth this year. Samsung Electronics and LG Electronics, which experienced losses in their TV business even during the peak season in the fourth quarter last year, are pinning their hopes on premium markets such as OLED and QLED TVs as in previous years. However, as competition with Chinese companies intensifies, the South Korean electronics giants are agonizing over securing profitability.
According to market research firm TrendForce on Feb. 5, global TV shipments fell 2.7% year-on-year to about 195 million units last year. This year’s first-quarter TV shipments are also estimated to decrease by 18.9% quarter-on-quarter, and the annual TV shipments are expected to increase slightly by 0.3% to 196 million units.
Samsung’s Video Display (VD) and Consumer Electronics (CE) divisions, which handle the company’s TV business, swung into the red in the fourth quarter of last year with a 50 billion won ($37.35 million) loss even during the peak season due to increased marketing expenses. Revenue for the same period stood at 14.26 trillion won, down 9% from the fourth quarter of 2022.
“Profitability of the VD division declined slightly year-on-year and quarter-on-quarter due to increased costs associated with stagnant market demand and intensified competition,” a Samsung Electronics official explained. “Increased competition from Chinese companies in the mid-to low-priced TV market contributed to the overall deterioration in profitability.”
LG Electronics is facing a similar situation. The company’s Home Entertainment (HE) division, in charge of the TV business, posted 4.15 trillion won in sales and 72.2 billion won in operating loss in the fourth quarter of last year. “It will take time for the consumer sentiment in the TV market to recover, making it difficult to expect significant growth this year,” said Lee Jung-hee, business managing director of the HE division at LG Electronics.
