Samsung Electronics bets on ultra-premium TVs to expand market presence in China
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Samsung Electronics announced on Wednesday that it has launched the world’s first 89-inch micro light-emitting diode (Micro LED) TV in China, following the introduction of its 110-inch Micro LED TV in the country last year. In April this year, the company unveiled the 89-inch Micro LED TV for the first time at China’s largest home appliance exhibition, the Appliance & Electronics World Expo (AWE).
Micro LED is a display technology that delivers exceptional picture quality by using micrometer (㎛)-sized LEDs to emit light and color without the need for a backlight or color filter. Samsung’s Micro LED lineup now features a bezel-free design, making it difficult to distinguish the boundary between the screen and the wall.
“We plan to expand our Micro LED TV lineup with 76-inch, 101-inch, and 114-inch models this year, targeting the demand for ultra-high-definition and ultra-large TVs,” said a Samsung official.
Samsung Electronics’ focus on “ultra-premium” products in China reflects the company’s sense of crisis over its business in China. The company has experienced a significant drop in semiconductor sales due to declining demand in China. Moreover, it has been losing ground to Chinese competitors in the smartphone and TV markets.
According to Samsung Electronics’ quarterly business report, its sales in China nearly halved to 7.92 trillion won ($6.0 billion) in the first quarter of this year, compared to 14.86 trillion won a year ago. While its sales had been increasing in previous years, reaching 9.84 trillion won in 2020 and 11.85 trillion won in 2021, the company’s market share in China fell below 20 percent for the first time since 2014 in the first quarter of this year. In the Chinese smartphone market, Samsung holds a market share of only around 1 percent, trailing behind Apple Inc. and Chinese brands such as Guangdong Oppo Mobile Telecommunications Corp. and Vivo Mobile Communications Co.
The Chinese TV market poses a significant challenge for Samsung Electronics. According to market research firm Omdia, Chinese TV manufacturers dominate the market. In the first quarter, Hisense held a 22 percent market share, Xiaomi had 21.6 percent, and TCL Technology accounted for 15.3 percent, while Samsung Electronics had a meager 1.3 percent share. Although Samsung Electronics maintained its top position in the global TV market with a 22.5 percent share of TV sales in the first quarter, it is struggling to gain traction in China.
To overcome this situation, Samsung Electronics aims to target high-income consumers in China with its technologically advanced ultra-premium TV products, setting itself apart from Chinese competitors. According to Omdia, Samsung Electronics enjoyed a 31.4 percent market share in the Chinese market for premium TVs priced over $2,500 in the first quarter, surpassing Hisense, which held a 28.3 percent market share.
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