TV business is losing profitability for both Samsung Electronics and LG Electronics, which rank No. 1 and No. 2 in the global TV market. The two Korean TV makers have established an unrivaled presence in the global market with their combined share reaching almost 50 percent.
According to market research firm DisplaySearch on April 14, Samsung had a share of 28.2 percent in the global TV market last year, followed by LG with 15.2 percent, Sony with 7.6 percent, and Hisense and Skyworth each with 6.7 percent.
Among major TV makers in Korea, China, and Japan, Samsung and LG were the only ones who enjoyed a positive growth in TV sales last year.
However, their profitability in the TV business is precarious. Korea Investment & Securities estimated that Samsung’s TV business recorded an operating loss of 133.3 billion won in the first quarter of this year, down more than 500 billion won from a quarter ago.
Hana Daetoo Securities estimated that LG’s TV business also suffered an operating loss of 24.6 billion won in the first quarter, in a turnaround from 100-200 billion won quarterly profit recorded throughout the January-September period of last year.
