Samsung, LG feel heat from Chinese TV makers

Chinese TV makers are pulling away from cheaper options and betting big on high-end, models powered by artificial intelligence, edging into ground long held by Korean TV giants Samsung Electronics and LG Electronics, just as global demand begins to slow.

According to market tracker Counterpoint Research, China's TCL and Hisense accounted for 12 percent and 11 percent of global TV shipments, respectively, between January and November last year, each gaining one percentage point from a year earlier. TCL's shipment volume rose 9 percent over the same period.

Samsung Electronics and LG Electronics, meanwhile, maintained market shares of 16 percent and 9 percent. While both companies managed to hold ground, their lack of growth stood out in a global TV market that has shown little sign of a meaningful rebound.

TCL's momentum has been particularly striking. In November alone, its market share climbed to 16 percent, narrowing the gap with Samsung to just a single percentage point. Shipments jumped 22 percent on-year, fueled by aggressive expansion in price-sensitive regions such as Eastern Europe, the Middle East and Africa, where affordability remains a decisive factor for consumers.

Research firm Omdia's data also showed that in the third quarter of 2025, the combined market share of TCL, Hisense and Xiaomi hit 31.8 percent, edging out the 28.5 percent held by Samsung and LG together.

Competition is also shifting beyond price alone. TCL has repositioned its mini LED TV lineup toward higher-end segments while accelerating the rollout of AI-enabled features, signaling a more direct challenge to categories long dominated by Korean brands.

The trajectory will sound familiar to industry veterans. Samsung and LG themselves rose past Japanese rivals by starting with competitively priced products, steadily improving quality and eventually establishing premium global brands. Chinese players now appear to be following a similar path, but at a notably faster pace.

The strain is already visible in earnings. Samsung's video display and digital appliances divisions recorded a combined operating loss of roughly 200 billion won ($137 million) last year, while LG's media entertainment solution division posted losses totaling 750.9 billion won. Both companies have responded with price cuts and heavier marketing spending, moves widely seen as necessary but costly in terms of margins.

They are now leaning on a two-track strategy: strengthening premium AI-powered models while reinforcing their midrange portfolio. Cost controls and investment in their own TV operating systems are also seen as essential steps toward restoring profitability.

Still, many in the industry advise against drawing straight-line comparisons to past rivalries. The current landscape reflects a more layered set of variables — from OLED-versus-mini LED dynamics and uneven AI and internet of things ecosystem maturity to supply chain capabilities and the unpredictable fallout of US-China trade tensions.

"Chinese brands are undoubtedly gaining share, but the next phase of competition will center on ecosystem dominance — spanning AI, platforms and content," said an industry source who requested anonymity. "Whether Samsung and LG can adapt quickly enough will decide what comes next."