Samsung and LG dominate in separate premium TV markets
OLED favoured in Europe while US loves its large LCDs
The two major markets of Europe and the US appear to favour separate TV technologies when it comes to the US$2,500 plus premium market.Between them, the European and US territories accounted for 51.4 percent of the premium TV market in Q1 of 2019, though to put this in perspective, the entire global premium market only accounts for 1 percent of TV sales.
Nonetheless, a recent report by industry analyst, IHS Markit, demonstrates the diversifying tastes of the Europeans and Americans. Almost two thirds, 65.1 percent, of premium TVs sold in Europe were OLED panels, while the reverse was true in the US premium market with the majority, 63.8 percent, being LCD panels.
This difference in approach may be down to the discrepancy in dwelling sizes between the two territories.
An industry analyst explained, "In Europe, OLED TVs are gaining popularity thanks to consumers’ relatively fast acceptance of new technology and preferences for medium-sized TVs," the analyst continued, "In the U.S., the majority of homes are large, so consumers usually choose LCD TVs 70 inches or bigger."
This represents good news for LG who has secured 56 percent of the European OLED market with their nearest OLED rival, Sony, accounting for 20.9 percent of sales.
However, contrast that to the US premium TV scenario, where LG only accounted for 10.6 percent of LCD sales, a figure dwarfed by Samsung, who clocked up 82.6 percent share of sales.
These kinds of figures are useful tools in allowing the rival South Korean companies see where they have to extend their marketing resources as they attempt to counter each other’s dominance in opposing premium TV markets.
Though premium TVs only account for 1 percent of the worldwide market, they are seen as important since they enable exposure of companies’ new technologies and also provide a higher profit margin as TV manufacturers struggle in the face of Chinese competition and a market flooded with cheap LCD panels.
Elsewhere, in the more affordable brackets, TVs between U$500 - US$750 represented 16.6 percent of the global TV market and sub US$200 TVs accounted for a 21.1 percent share.
Globally, Samsung topped the sales charts for the first quarter of 2019 with an overall share of 29.4 percent of the market while LG came in second with almost half that amount at 16.5 percent.
Image Source: BusinessKorea
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