Samsung•LG in joy and sorrow for home appliance performance… Judgment in TV
Park Seul-gee | seul@ | 2017-10-17 14:40:08
[Digital Times, Park Seul-gee] Samsung Electronics and LG Electronics performed well in the third quarter, but the TV business has been mixed. In the global TV market, which has stopped growing, LGE has taken a lead in OLED (organic light emitting diode) TVs, but Samsung Electronics is suffering from sluggish sales of premium-grade QLED TVs.
According to industry sources, sales of the VD (video display) division, which is responsible for the TV business in Samsung Electronics in the third quarter of this year, declined 10.6% from KRW 5.6 trillion in the same period last year, Sales of HE (home entertainment), which is in charge of business, were estimated to have increased by 11.1% from KRW 4.81 trillion in the same period last year to about KRW 4.6 trillion.
Sales of the VD division of Samsung Electronics were estimated to reach KRW 7 trillion in the third quarter of 2015, but it was estimated to be 6 trillion won in the third quarter of this year. During the same period, LG Electronics` HE division sales rose to KRW 4 trillion from KRW 4.28 trillion. The sales gap between the Samsung VD and LG HE divisions narrowed from KRW 2.68 trillion in the third quarter of 2015 to KRW 2.45 trillion in the third quarter of last year and about KRW 1.3 trillion in the third quarter of this year.
The reason why Samsung Electronics cannot survive in the TV business is that the spread of QLED TVs to counter the OLED TV is the biggest reason. Samsung QLED TV is an LCD TV that needs to use backlight in addition to Quantum dot (Quantum dot) film, but the cheapest QLED TV (55-inch Q7F) is about KRW 3.66 million, about 40% more expensive than LG OLED TV. Among consumers, QLED TV is only an LCD product, but it is difficult to understand that it is expensive because it is a premium model.
In the world premium TV market, Samsung Electronics is playing its pride. According to market researcher IHS Markets, Samsung Electronics accounted for 54.7% of the TV market in terms of revenue in the TV market in excess of USD 2500 in 2005, but the share of the TV market last year was 23.4%. It has dropped to 17.0% in the second quarter of this year. However, LG Electronics` market share grew from 21.3% in 2015 to 40.8% last year and 33.5% in the second quarter of this year.
Meanwhile, in the third quarter of this year, Samsung Electronics` share in the global TV market fell to 18.1% from 2.7% in the previous quarter, but LG Electronics dropped 1.3% to 12.1%, which also narrowed its market share.
LG Electronics may soon catch up with Samsung Electronics sales if this trend continues.
Samsung Electronics is currently working on marketing to slander OLED online. The company recently posted a video which points out the burn-in problem of OLED panels. Prior to that, North Korea and Central and South America countries also expanded the `Burn-in 10-year guarantee` service. Burn-in problems are mainly caused by OLED TVs, and if burn-in occurs in QLED TV within 10 years, it is intended to change it for free.
Some analysts believe that Samsung Electronics reflected the crisis of the TV business as it controlled LG, its rival. An industry expert said, "The world TV market is turning downward this year, and Chinese TV makers are pushing low prices. The OLED TV camp is getting bigger." Samsung Electronics, which is losing market share.”
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According to industry sources, sales of the VD (video display) division, which is responsible for the TV business in Samsung Electronics in the third quarter of this year, declined 10.6% from KRW 5.6 trillion in the same period last year, Sales of HE (home entertainment), which is in charge of business, were estimated to have increased by 11.1% from KRW 4.81 trillion in the same period last year to about KRW 4.6 trillion.
Sales of the VD division of Samsung Electronics were estimated to reach KRW 7 trillion in the third quarter of 2015, but it was estimated to be 6 trillion won in the third quarter of this year. During the same period, LG Electronics` HE division sales rose to KRW 4 trillion from KRW 4.28 trillion. The sales gap between the Samsung VD and LG HE divisions narrowed from KRW 2.68 trillion in the third quarter of 2015 to KRW 2.45 trillion in the third quarter of last year and about KRW 1.3 trillion in the third quarter of this year.
The reason why Samsung Electronics cannot survive in the TV business is that the spread of QLED TVs to counter the OLED TV is the biggest reason. Samsung QLED TV is an LCD TV that needs to use backlight in addition to Quantum dot (Quantum dot) film, but the cheapest QLED TV (55-inch Q7F) is about KRW 3.66 million, about 40% more expensive than LG OLED TV. Among consumers, QLED TV is only an LCD product, but it is difficult to understand that it is expensive because it is a premium model.
In the world premium TV market, Samsung Electronics is playing its pride. According to market researcher IHS Markets, Samsung Electronics accounted for 54.7% of the TV market in terms of revenue in the TV market in excess of USD 2500 in 2005, but the share of the TV market last year was 23.4%. It has dropped to 17.0% in the second quarter of this year. However, LG Electronics` market share grew from 21.3% in 2015 to 40.8% last year and 33.5% in the second quarter of this year.
Meanwhile, in the third quarter of this year, Samsung Electronics` share in the global TV market fell to 18.1% from 2.7% in the previous quarter, but LG Electronics dropped 1.3% to 12.1%, which also narrowed its market share.
LG Electronics may soon catch up with Samsung Electronics sales if this trend continues.
Samsung Electronics is currently working on marketing to slander OLED online. The company recently posted a video which points out the burn-in problem of OLED panels. Prior to that, North Korea and Central and South America countries also expanded the `Burn-in 10-year guarantee` service. Burn-in problems are mainly caused by OLED TVs, and if burn-in occurs in QLED TV within 10 years, it is intended to change it for free.
Some analysts believe that Samsung Electronics reflected the crisis of the TV business as it controlled LG, its rival. An industry expert said, "The world TV market is turning downward this year, and Chinese TV makers are pushing low prices. The OLED TV camp is getting bigger." Samsung Electronics, which is losing market share.”