Samsung Tipped To Start TV War To Make Up For First Half Decline
Samsung is set to start a global TV war year later this year as they look to make up ground lost in the first half of the year due to COVID-19, the market leader is currently selling into both the premium and value TV markets.
Global TV shipments fell 4.8% on year to 50.4 million units in first-quarter 2020, and the decline widened to 12.2% to 47.4 million units in the second quarter, according to Sigmaintell Consulting with Samsung one of the big losers.
Now Samsung is cranking up production as they face new competition from LG who is set to bring a value line to market in Australia after they switched to new manufacturing plants in Asia.
Also set to challenge Samsung in Australia are Chinese brands TCL, Hisense and in the premium market European brand Loewe whose range has been picked up exclusively by The Good Guys despite strong representation from Harvey Norman who also wanted the brand exclusively.
ChannelNews understands that last month retailers were shown a brand new Loewe range spanning both the top end premium market and a mid-market range of OLED TV’s along with Loewe branded audio systems including soundbars and speakers, the range is distributed by the Melbourne based Indi Group.
According to analysts Samsung Electronics only achieved 40% of its sales targets for the first half of the year despite big demand for TV’s worldwide due to lockdowns, now they want to make up for this in the second half of the year.
According to component suppliers Samsung is gearing up to achieve its year-end target of 45-46 million TVs in 2020. The Korean giant shipped 4.25 million TVs in 2019.
The #1 US TV brand TCL has seen its shipments return to a growth track since the second quarter after suffering a serious setback in the first quarter when the pandemic was at its peak in China and US residents were in lockdown and stores closed.
TCL is expected to ramp up its entire shipments for 2020 to 22-23 million units, up from 20 million units shipped a year earlier, the sources estimated.
According to DigiTimes, Hisense performed better than expected in the first half, with its shipments reaching about 40% of its target due to heavy discounting. In Australia the Company has benefitted from demand for NRL games after signing a sponsorship package earlier this year.
The Chinese brand aims to ramp up its TV shipments to 17 million units in 2020, up from 15.75 million shipped a year earlier, the sources added.
In Australia Sony is suffering from a lack of stock with shipments from the Japanese brand only reaching 30% of its target in the first half of 2020. Retailers are set to see stock in late August.
Sources in Korea said that it remains to be seen if Sony can ramp up its sales significantly in the second half.
Analysts are tipping that panel prices will rise in the second half by as much as 10% and that shipments will increase by 30%.