TCL Rocket To #1 In TV Sales
TCL who are stripping market share from Hisense in Australia but under pressure from low cost Samsung TV’s has hit the jackpot in the USA coming out #1 in the giant USA market.
This is a major blow for Chinese TV brand Hisense who were forced to buy the rights to the Toshiba name after their TV’s were rejected by US consumers, prior to buying the rights to the Toshiba name Hisense licenced the Sharp name before Sharp took it back after accusing Hisense of producing poor quality TV’s.
IHS Markit TV Sets Intelligence Service said overnight that TCL’s share of US TV shipments rose to 26.2 percent during the first quarter of 2019, up from 16 percent during the same period in 2018, unit shipments boomed by 112 percent year-over-year.
The new data puts TCL in the number one position ahead of previous market leader, Samsung, whose shipment share declined to 21.8 percent, down from 28.0 percent one year earlier. V
Vizio who were #1 four years ago came in third with 13.7 percent share.
TCL’s strong performance contributed to a record quarter for the North American TV market, with shipments rising nearly 30 percent year-on-year to reach a historic high of 9.3 million units.
Despite TCL’s rise, Samsung maintained a commanding lead in terms of revenue, accounting for a 36.9 percent share, more than double the total of any other company. Samsung’s revenue leadership reflects its focus on TVs with larger sizes and higher price points.
Neither Hisense nor Toshiba were in the hunt for a top spot.
“Amid rising concerns about tariffs arising from the U.S. China trade dispute, TCL and other TV brands that rely heavily on China-based manufacturing have been increasing shipments dramatically,” said Paul Gagnon, research executive director at IHS Markit.
“As uncertainty mounts around a possible tariff-driven rise in costs, these brands have been bolstering shipments to protect against any potential disruption. Given that margins for TVs are relatively low compared to other consumer-electronics categories, any tariff increase would have a major impact on sales.”
Like Australia the erosion in the average selling price of TV’s reached a high level of intensity in the first quarter with the overall average price of a 65-inch LCD TV declining to nearly the same level as during the fourth quarter of 2018, when TV prices dropped because of sales marketing.
In Australia TCL will shortly launch a second TV brand in partnership with a major retailer.
Worldwide TV shipments recovered in the first quarter, rebounding from a 1.6 percent decline in the fourth quarter of 2018 to a positive 2.1 percent growth rate compared with a year prior. The surge in shipment growth was almost entirely due to the surprisingly strong shipment growth in North America, despite very strong increase in the fourth quarter of 2018. This strong growth offset another quarter of steep shipment decline in China and Latin America.
In China, the world’s largest TV market, Xiaomi remained in first place for the fourth consecutive quarter, reaching a record shipment share of more than 19 percent in the first quarter. This represents the highest single quarterly market share posted by any Chinese brand in China in more than six years, Hisense market share slipped.
Xiaomi achieved this growth through disruptive market pricing and a direct-to-consumer business model that reduces distribution channel costs and passes the savings along to consumers. Xiaomi had the lowest ASP in China of any Chinese TV brand during the first quarter.