Competition between different Chinese TV makers is heating up as the combined market share of TCL and Hisense for LCD TV panel purchases, respectively the second and third largest buyers of LCD TV panels behind Samsung, account for 24% in the first quarter of 2023, compared to 22% for the year 2022. Reported over the last four years, the combined market share of TCL/Hisense stands at 19%.
The word to Deborah Yang, Display analyst at Omdia
As a reminder, over the past decade, Samsung has remained the number-one buyer of LCD TV panels worldwide with a market share of 18% in 2021, 13% in the first quarter of 2023. Deborah Yang, Display analyst at Omdia said, “Our report shows that TCL and Hisense's growing share of joint panel purchasing volume is narrowing the competitive gap with Samsung in their LCD TV panel purchasing bargaining power. However, despite less competition from Korean panel makers on LCD TV panels (Editor's note: Samsung Display and LG Display have stopped or drastically reduced their production of LCD TV panels), the bleak demand forecasts for the global LCD TV market continue to weigh on Chinese panel makers”.
LCD TV market, TCL/Hisense figures
In 2022, 76% of LCD TV panels purchased by TCL and Hisense came from Chinese panel makers including BOE, CEC-Panda, CHOT, ChinaStar and HKC Display, up from 73% established for 2021, or 58% in 2019.
LCD TV market, coming upheaval?
The withdrawal of Samsung Display and LG Display from the LCD TV panel business in 2023 will cause significant difficulties for South Korean TV manufacturers from Chinese panel suppliers. Until then the most powerful buyers of LCD TV panels, their influence will decline significantly. “LCD TV panel allocations are expected to change dramatically as well as the competitive landscape for global TV manufacturers, amid global inflationary issues that will prove even more challenging for global premium TV players,” concludes Yang. Understand by this that the ranking of the biggest players in the LCD TV panel market could be upset in the quarters or years to come, and Samsung will lose its first place since becoming the leader in the TV market, for the seventeenth consecutive year in 2022, wishes to welcome more models based on Oled technology into its mid/high-end and premium TV series (see our news Oled Samsung/LG Display TV Agreement 2024-2026, it's signed!).