Exclusive: Hisense Profits Fall Despite Revenue Increase, Questions Over TV Market Share
Chinese TV and appliance brand Hisense have failed to deliver increased profits despite a $50M jump in revenues during the last financial year, questions are also being raised as to their actual market share in the Australian TV market.
The Company who appear to be holding only 30 day’s supply of TV’s, has recently lifted their ‘after sale’ service provisions from $10M to $13M, the Company is not saying whether this is due to increased warranty claims against their products.
According to the Companies latest financial filings, revenues for the last financial year, revenues rose to $275M Vs $224M in the previous year. However, profits fell by $87M from $9.9M to $9.03M.
Questions are now being raised as to how much TV market share Hisense actually has with some observers claiming that 30% of the $275 million in revenues came from the sale of appliances.
According to analysts the Australian TV market is worth approximately $2 billion dollars with Hisense often claiming that they are the #1 TV brand with an estimated $192M in TV sales.
If the split is 70% TV’s and 30% appliances Hisense has less than 10% of the Australian TV market.
Samsung is believed to be holding over 20% of the TV market followed by LG.
Recently Hisense moved to launch what they are describing as their Designer Collection in collaboration with Harvey Norman. The new “Designer” TV’s that have a white back are technically identical to other cheaper Hisense TV’s but despite this Hisense is asking a “premium price” for the white backed models.
Australia is one of the most successful markets in the world for Hisense with the Chinese Company forced to license the Toshiba name in an effort to convince consumers in the USA and Europe to buy their products.
The move is set to see the local subsidiary selling both Toshiba and Hisense TV’s alongside each other with all TV’s across both brands coming off the same production lines.
When the Company licensed the Sharp TV brand name the new owners of the Sharp brand name, Foxconn moved to quickly take their brand name back claiming that the Hisense made TV’s were poor quality and not up to the standards for a TV being sold under the Sharp brand name.