Slower run toward China and Japan due to sluggish growth
Park Seul Gee | seul@ | 2017-07-24 10:38:37
[Digital Times, Park Seul-gee] Samsung Electronics and LG Electronics have lowered their TV sales targets this year. This is because the global growth rate has fallen and the offensive of Chinese and Japanese companies has been stopped this year.
According to the electronics industry sources on July 23, Samsung Electronics recently lowered its TV sales target to about 45 million units this year, about 3 million units lower than originally planned. That is more than 6% of Samsung`s sales last year. Samsung Electronics reported that TV sales in the first half of the year were sluggish than expected and it lowered the target.
A Samsung Electronics representative said, "We have set a relatively low target for TV sales in order to cope with the market situation flexibly. We plan to focus on choosing and focusing on premium and large TV products.”
Meanwhile, its rival, LG Electronics, said it had lowered its TV sales target by about 5 % higher than last year`s sales (about 28.2 million units). A senior LG Electronics representative said, "This year`s TV sales volume is expected to remain at the same level as last year. We are looking forward to the second half of the year."
Samsung and LG have lowered their TV sales targets this year because the global TV market is expected to turn downward this year. The industry forecasts that the world TV market, which hit 219.2 million units last year, will decline by about 10% to 200 million units this year due to a sharp decrease in demand in China, the world`s largest TV market. In the second quarter, global LCD TV sales volume is estimated at 47 million units, down 1% from the same period last year. Global LCD TV shipment in the first quarter also dropped by 8.4% to 44.5 million units.
Besides, the strengthening of the offensive between Japanese and Chinese companies is attributed to the two companies lowering their sales targets. According to the market research firm IHS, the market share of Korean companies dropped by 1.3%, while the share of Japanese companies rose by 1.1%. Chinese companies showed a slight decrease by 0.04%.
Sony`s TV market share jumped 2 percentage points from 4.1 % in January to 6 % in June among Japanese companies. In the same period, Sharp also rose from 3.7% to 4.1%. Sony is aggressively targeting the market by offering 10% of global TV market share at end-2010, and Sharp expecting to reach 20 million TV sales target by 2020.
Besides, the rise in TV cost burden due to the rise in TV LCD panel prices in the first half of this year has also influenced TV sales in the first half. LCD panel prices for TV this month fell by 1 ~ 2%, but still remain strong. An industry expert said, "Demand for less than 55-inch products is decreasing, and demand for more than 60-inch products is still in high demand. The premium strategy of each company will determine profitability this year."
By Park Seul Gee seul@
[ copyright ⓒ The Digitaltimes ]
According to the electronics industry sources on July 23, Samsung Electronics recently lowered its TV sales target to about 45 million units this year, about 3 million units lower than originally planned. That is more than 6% of Samsung`s sales last year. Samsung Electronics reported that TV sales in the first half of the year were sluggish than expected and it lowered the target.
A Samsung Electronics representative said, "We have set a relatively low target for TV sales in order to cope with the market situation flexibly. We plan to focus on choosing and focusing on premium and large TV products.”
Meanwhile, its rival, LG Electronics, said it had lowered its TV sales target by about 5 % higher than last year`s sales (about 28.2 million units). A senior LG Electronics representative said, "This year`s TV sales volume is expected to remain at the same level as last year. We are looking forward to the second half of the year."
Samsung and LG have lowered their TV sales targets this year because the global TV market is expected to turn downward this year. The industry forecasts that the world TV market, which hit 219.2 million units last year, will decline by about 10% to 200 million units this year due to a sharp decrease in demand in China, the world`s largest TV market. In the second quarter, global LCD TV sales volume is estimated at 47 million units, down 1% from the same period last year. Global LCD TV shipment in the first quarter also dropped by 8.4% to 44.5 million units.
Besides, the strengthening of the offensive between Japanese and Chinese companies is attributed to the two companies lowering their sales targets. According to the market research firm IHS, the market share of Korean companies dropped by 1.3%, while the share of Japanese companies rose by 1.1%. Chinese companies showed a slight decrease by 0.04%.
Sony`s TV market share jumped 2 percentage points from 4.1 % in January to 6 % in June among Japanese companies. In the same period, Sharp also rose from 3.7% to 4.1%. Sony is aggressively targeting the market by offering 10% of global TV market share at end-2010, and Sharp expecting to reach 20 million TV sales target by 2020.
Besides, the rise in TV cost burden due to the rise in TV LCD panel prices in the first half of this year has also influenced TV sales in the first half. LCD panel prices for TV this month fell by 1 ~ 2%, but still remain strong. An industry expert said, "Demand for less than 55-inch products is decreasing, and demand for more than 60-inch products is still in high demand. The premium strategy of each company will determine profitability this year."
By Park Seul Gee seul@