Seoul, South Korea – A significant shift is underway in the global television market, with Chinese manufacturer TCL surpassing Samsung for the top spot in worldwide TV shipments in December . The development, reported by market research firm Counterpoint Research, signals a growing challenge to Samsung’s long-held dominance and highlights the increasing competitiveness of Chinese electronics companies.
According to Counterpoint Research data, TCL secured a 16% market share in December, edging out Samsung’s 13%. While Samsung maintained overall leadership for the fourth quarter of , shipping 2% more televisions than TCL during the period, the monthly loss marks a symbolic victory for the Chinese firm. Samsung had held the number one position from January through November , but saw its market share decline by 4 percentage points in December, falling from 17% to 13%.
The rise of TCL is attributed to strong sales performance in the Asia-Pacific region, China, and the Middle East, offsetting weaker demand in North America and Western Europe. The company’s strategy of focusing on mid-range and budget-friendly televisions, including its recently launched T7 series, appears to have resonated with consumers. Aggressive holiday pricing on its higher-end QM8K and QM9K models also contributed to the surge in shipments.
Hisense, another Chinese television manufacturer, secured the third position in December, though its shipments experienced a significant 23% year-over-year decline, indicating struggles within the broader Chinese TV market. LG Electronics followed with a 9% market share.
The competitive landscape is further complicated by TCL’s recently announced joint venture with Sony, slated to finalize in March . This partnership, which will see TCL holding a 51% stake and Sony Corporation holding 49%, aims to leverage Sony’s renowned “Bravia” brand and reputation in the premium television segment. The move is widely seen as a direct challenge to Samsung’s dominance in the high-end OLED and 8K television markets.
“Even though it’s just one month’s performance, TCL shows continuous shipment growth year-on-year, while Samsung shows a stagnant trend,” stated Bob O’Brien, Director at Counterpoint Research. “If TCL can gradually strengthen its position in the premium segment through cooperation with Sony, it could pose a greater competitive threat to Samsung in the future.”
The implications of this shift extend beyond market share figures. For South Korean giants Samsung and LG, the increasing competition from Chinese manufacturers, coupled with the TCL-Sony alliance, raises concerns about the future of their dominance in the global television industry. The OLED and premium TV markets, traditionally led by these Korean companies, are now poised for potential disruption.
The partnership between TCL and Sony is viewed as a strategic move by TCL to improve profitability, which has been declining due to intense competition, particularly within China. While TCL’s overseas television sales exceed those in China, profit margins are higher domestically. However, sluggish domestic demand, linked to the ongoing real estate downturn in China, is intensifying price competition and eroding profitability.
The deal with Sony is expected to begin operations in April , and will see products carrying both the “Sony” and “Bravia” names. TCL’s stock price surged 18.6% on the Hong Kong stock exchange following the announcement, reaching its highest level in approximately two decades, reflecting investor confidence in the potential benefits of the collaboration.
The changing dynamics of the global television market underscore the growing influence of Chinese manufacturers and the increasing importance of strategic partnerships in maintaining competitiveness. While Samsung remains a formidable player, the rise of TCL and its alliance with Sony signal a new era of competition and innovation in the industry. The coming years will be crucial in determining whether TCL can successfully leverage its partnership with Sony to solidify its position as a leading global television manufacturer and challenge Samsung’s long-standing dominance.
