Samsung Electronics has reportedly launched a management review of its television business amid increasing pressure from Chinese companies in the global TV market. The move aims to reassess Samsung's existing TV business structure and the competitiveness of its new ventures, to adjust its business organization and product portfolio accordingly.
First review since 2015
According to industry sources cited by South Korean media outlet Seoul Economic Daily, Samsung's visual display (VD) division, which is responsible for the company's TV business, recently initiated a management review. Notably, this is the first such review the division has undergone in 10 years, with the last one taking place in 2015.
Following the initiation of the review, each department within the division is required to submit data to the review team regarding the current status of its operations and proposed improvement plans. The team will then analyze the cost structure, feasibility, and competitiveness of each business unit. Samsung plans to use these insights to make adjustments to its business portfolio and organizational structure.
Back in 2015, Samsung faced declining operating profits due to aggressive low-price competition from Chinese companies, shifts in the TV market landscape, and intensified competition. As a result, the company recorded consecutive losses in January and February 2015, prompting a management review of its TV division.
Competition from Chinese makers heating up
Industry observers believe that the sense of crisis is even more intense this time around, as Chinese companies have become even more competitive in the high-end TV segment traditionally dominated by South Korean players like Samsung, and can no longer be underestimated.
Although Samsung has maintained a dominant position over its competitors through ongoing technological and design innovation, as well as a strategy of ecosystem compatibility with its other in-house devices, industry forecasts suggest potential challenges ahead. From 2026 onward, some predict that Samsung may have to relinquish its leadership position to Chinese companies.
Market research firm UBI Research highlighted that Samsung's TV shipments have dropped from 50 million units in 2020 to around 30 million units in 2024. It further projects that China-based Hisense Group may surpass Samsung in shipments by 2026, with TCL Technology Group potentially overtaking them by 2028.
Mini LED development limiting OLED growth
This trend largely stems from South Korea's differentiated OLED TV strategy, once a key advantage over Chinese competitors, now being increasingly challenged by the rapid development of mini LED TVs from Chinese panel manufacturers.
According to analysis by Counterpoint Research, mini LED TVs are priced similarly to OLED TVs; however, due to the price gap between OLED and LCD panels, more and more consumers are opting for mini LED TVs, which in turn is limiting the growth of OLED TVs.
Pursuing new growth opportunities
Following this management review, Samsung may undergo organizational restructuring and reallocate resources in pursuit of new growth opportunities. Industry insiders suggest that Samsung might reorganize to accelerate the integration of artificial intelligence with its TV business, or it may explore ways to strengthen its non-TV business segments.
However, some have pointed out that although Samsung continues to demonstrate incremental technological improvements, it has yet to introduce innovations capable of shaking up the entire market. Consequently, Chinese companies focusing on large-size TVs have steadily increased their market share. If the current competitive landscape remains unchanged, it is only a matter of time before China takes control of the market.
Article translated by Eifeh Strom and edited by Jerry Chen
