Samsung TV Sales Surge The Big Loser Is Hisense
Samsung Electronics TV sales are surging both locally and across the world according to new data released this week, the big loser appears to be Hisense whose TV’s are on the nose in the USA due to ‘poor quality’.
The other big winners are LG and Sony.
The South Korean tech giant not only achieved record but they were able to hold margin as shortages hit and revenues surging.
Research Company Omdia reported that Samsung held 33.1 revenue percent market share which is a record high even for Samsung.
Revenue from TV sales in the third quarter of 2020, was A$12.37 billion an increase of 22 percent year on year.
Samsung 75-Inch TV
The Company sold 14.85 million TV units during the month of July to September, up by 39 percent.
This accounted for 23.6 percent of total global sales.
Global TV sales grew 14.7 percent year on year, reaching 62.87 million units in sales.
Sources from within the industry have stated that healthy sales of QLED and other large TVs have contributed to the company’s increased market share, despite the impacts of the Coronavirus pandemic.
In just a year, Samsung doubled its QLED TV sales from 1.16 million to 2.33 million units.
Another South Korean brand, LG Electronics arrived second in the category during the same period. It saw a 16.6 percent market share in the third quarter, which was followed by Sony with 10.1 percent. Samsung and LG’s combined sales alone account for 49.7 percent of the total global market.
Chinese Company Hisense whose products are popular in Australia failed to make the top five due in part to the Company struggling in the USA market due to poor quality TV’s. The Company is also being sued in Europe for infringing patents essential to the AVC/H.264 (MPEG-4 Part 10) digital video coding standard used in mobile devices, televisions, and other products.
Leading US Consumer Report claims that they can they no longer recommend televisions made by Chinese Company Hisense in light of new data that revealed that the brand has subpar reliability.
This is the same argument that Sharp raised when they demanded that Hisense stop putting their name on Hisense manufactured TV’s after the Company licenced the Sharp brand name because of problems with the quality of their own brand.
Sharp who had been selling TVs in the US since 1970s were forced to file court action claiming its brand and trademark were “at risk of being destroyed” by Hisense, which acquired a Mexican factory and five-year license to sell Sharp-branded products in North and South America.
Sharp eventually got their brand name back.
Omdia said that Ultra HD TVs also saw strong shipments, recovering ground lost in early 2020 when shipments of small (non-UHD) sets were strong. It was the second-best quarter ever, behind only the seasonally-strong fourth quarter of 2019. UHD resolutions accounted for 58.6% of all TVs shipped. Going up a notch, while 8K shipments proved better than forecast, they only accounted for 825,000 shipments. 8K shipment share was flat at 0.22% of all UHD and 0.13% of all TV shipments thus still not yet reaching breakthrough levels as a significant part of the TV market.
OLED TV shipments achieved their long-awaited growth as LG Display’s new fab in China added to the supply of such displays. Rising LCD panel prices will also reduce the cost pressure on OLED TVs. Smart TV penetration continued its steady progression, reaching a record 85.9% of all TVs shipped, up from 79.2% a year ago.
Assessing the trends revealed in the study, Paul Grey, senior research director, TV, at Omdia said it was clear that the current trend was more than just release of pent-up demand and inventory replenishment. “With the Northern Hemisphere winter and renewed lockdown measures, TV viewing is becoming more valuable to consumers. We can expect firm demand to continue at least until the end of the year,” de said. “So far, cost increases (principally on LCD panels) have not worked their way fully through to consumers. The coming months will see upward pressure on prices combined with the longer-term economic consequences of Covid-19 becoming apparent. Much will depend on whether other regions can repeat the V-shaped recovery seen in China.”