April 20, 2024

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[THE INVESTOR] Samsung Electronics reportedly plans to ditch the production of TVs with a display size of 20 to 30 inches, and put more focus on fostering its premium TV brands, according to news reports on Oct. 19.

“Samsung will gradually phase out the production of TVs in the 20-30 inch range featuring HD and full HD resolutions,” a Samsung official was quoted by local daily JoongAng Ilbo as saying. 

The official also said the tech giant will pour more resources into beefing up the more profitable premium lineup, including UHD TVs with screen size of 60 inches or larger.

A Samsung spokesperson said while it is true that it would be cutting down production of smaller TVs, it has no plans to stop it fully. “We have long been shifting our focus from smaller TVs to the high-end lineup.”

Samsung’s move comes amid its dwindling market share in the global TV market.

Particularly in the premium segment of TVs priced at US$2,500 or above, Samsung is struggling to compete with rivals. Its market share more than halved from 54.7 percent in 2015 to 23.4 percent last year, and it further fell to 17 percent in the second quarter this year, according to data compiled by research firm IHS Markit.

On the other hand, LG saw its market share nearly double from 21.3 percent in 2015 to 40.8 percent last year in the high-end TV sector. In the second quarter this year, it declined to 33.5 percent -- still higher than Samsung.

Samsung’s market share in the overall global TV market in the third quarter this year dropped 2.7 percentage points to 18.1 percent from the previous quarter while LG saw its market share slip 1.3 percentage points to 12.1 percent, during the same period.

The tech giant, meanwhile, is in negotiations with display maker LG Display to receive LCD panels for TVs after its long-time partner Sharp abruptly stopped supplies in December last year.

It is expected Samsung will roll out UHD TVs equipped with LG’s panels early next year.

By Kim Young-won (wone0102@heraldcorp.com)