TCL narrows gap with Samsung in premium mini LED TV segment

China’s TCL Technology, the world’s No. 2 TV maker, has been expanding its presence not only in the market for cheap LCD TVs but also in premium lines such as mini LED TVs, chipping away at the market share of industry leader Samsung Electronics Co.

According to research firm Omdia, TCL accounted for 12.6% of global TV shipments in the first quarter of this year, up 0.7 percentage point from 11.9% the year prior. That is in contrast to a decline in Samsung’s market share to 18.8% from 20.3% during the same period.

LG’s market share remained steady at 11.8% versus 11.7%. TCL overtook the South Korean brand in 2022.

Its ascent in the TV market is notable in terms of its sales value, which grew at a faster pace than its rise in sales volume. That indicated it sold more high-end products than the previous years.

In the quarter ending in March, it controlled 11.6% of TV sales in terms of value, up 1.8 percentage points compared with 9.8% in the year prior.

By contrast, Samsung and LG saw their shares slipping in the same period.
       

Major TV makers' market share in terms of value
Company	Q1, 2024	Q1, 2023
TCL	11.6%	9.8%
Samsung Electronics	29.3%	31.9%
LG Electronics	16.7%	17.0%
(Source: Omdia)

Behind its advance in the global market were the mini LED TVs that it developed in 2019 for the first time in the world.

They use LED backlights that are around one-quarter of the size of regular LEDs.

Samsung and LG have launched mini LED TVs with product names of QLED and QNED TVs to catch up with TCL. But they are still trailing their Chinese rival in the LED TV market.

TCL’s flagship 98-inch mini LED TV sells at about half the price of South Korean brands with similar specifications.

TCL is sharpening its technology to further narrow its gap with Samsung. Early this year, it launched a 115-inch mini LED TV, the world’s largest of its kind. Next month, it will unveil a premium TV jointly developed by Bang & Olufsen, the world’s largest speaker maker.  

TCL has invested more than 6 trillion won ($4.4 billion) to develop mini LED panels. Its subsidiary CSOT was selected as the preferred buyer of LG Display Co.’s liquid crystal display (LCD) panel plant in Guangzhou, China in a deal estimated at 2 trillion won ($1.5 billion), according to LG Display’s regulatory filing last week.

If the deal goes through, the plant will supply TCL with LCD panels on a stable basis and the contract could further drive down its TV prices.

The growing mini LED TV market is offering a tailwind to TCL as well.

According to display industry tracker DSCC, mini LED TV shipments are expected to surpass those of OLED TVs by around 2027.

To outsmart TCL, Samsung is concentrating on its connected multiple home appliances such as TVs, air conditioners and refrigerators to provide customized, smart home services.

LG has introduced a web operating system (WebOS)-based TV platform available for smart TVs with a focus on its flagship OLED TVs. On the TV platform, a user connects to the internet and downloads on-demand content from apps while accessing streaming services.

“If Samsung and LG fail to secure killer content, they will lose even the TV market, the last bastion of home appliances, to China,” said a South Korean TV company official.

Write to Chae-Yeon Kim at Why29@hankyung.com
 


Yeonhee Kim edited this article.