Samsung Exec’s Meet For Pow Wow, As Arch Rivasls Fight It Out In Premium TV Market
It’s that time of the year when Samsung executives embark on two-day meetings to try and identify the next big consumer trend, next week will be the first time in the absence of its heir apparent who was arrested in a presidential bribery scandal.
It’s also the first time the giant electronics Company will hold the meetings after the Samsung Group was disbanded last year, as a result each division will have to come up with their own unique strategies in a competition to become the ultimate Samsung business division.
What is emerging is that the TV fight between Korean rivals Samsung and LG is set to move to the super large premium TV category with both Companies betting on lucrative premium and large televisions to maximize profits in the second half of this year.
Last month, Samsung launched 75-inch QLED TVs in Korea it’s now emerged that they are to roll out a larger line-up of, 82-inch and 88-inch models which are tipped to be launched in Australia in late September/October.
Not to be outdone LG has revealed an 86-inch and 75-inch super ultra-high definition television which they will use to compete head on with Samsung.
They are also selling a 77-inch LG Signature OLED TV which is the largest and most expensive OLED TV available today.
According to market research firm IHS Markit, the combined share of Samsung and LG in the global premium television market priced over $1,500 was around 50 percent in the first quarter of this year, with LG having a 35.8 percent share and Samsung grabbing a 13.7 percent share.
“The market share of premium TVs is important to its producers as it determines their profitability. Samsung, LG and Sony will drive the demand of large TV panels in the third quarter by launching supersized models,” said Kim Dong-won, an analyst at KB Investment & Securities.
Both Samsung and LG said they will continue to focus on premium and large TVs, viewing them as lucrative and marketable models.
At the same time Hisense who while grabbing market share in Australia is struggling to be a Premium TV player with the Company recently discounting models to hold onto share.
“Growing sales of large TVs in recent years are driven by needs of both consumers and TV makers. Consumers now pay more attention to size than resolution — which is already high enough — while TV makers want more lucrative models,” a Samsung spokesperson said.
A LG’s spokesperson said, “(The trend) is expected to continue as consumers can now buy larger TVs at more affordable prices (than in the past) due to the falling panel prices. 50-inch to 59-inch TVs are expected to be mainstream in the market for the next few years.”
According to IHS, the share of TVs that are 50-inch and higher will reach 50 percent in the global TV market this year for the first time. The share of TVs that are 50-inch to 59-inch is also expected to increase to 35.3 percent this year from 29.1 percent in 2015.