LG’s local newspaer the Korean Times claims that it is crucial that LG Electronics immediately implement more decisive measures to stem its falling flat-screen TV market share.
The Korean company saw its share in the North American flat-screen TV market, including liquid crystal display (LCD) TV’s and plasma TV’s, reach 8.2 percent in April-June, losing its share by 0.3 percentage points from the first quarter, research firm DisplaySearch said.
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Further, the company’s global share in the latest quarter was down to 7.8 percent from 8.1 percent in the first quarter in the LCD TV segment, while its share in the plasma TV market slid to 10.7 percent from 13.6 percent between January-March.
“Based on the second quarter result, LG Electronics slightly fell, the victim of its archival Samsung Electronics and Japan’s Sony,” an LG official said this week..
Analysts have told the Korean Times that Samsung Electronics and Sony have struck back with their own cuts and new low-costs sets, pushing them to better compete with followers with competitive pricing.
“The competitive battle and price cutting among Samsung and Sony has made it a struggle for other competitors such as LG Electronics and even some Japanese TV manufacturers to keep pace,” an analyst of television systems for iSuppli said.
In North America, the world’s biggest electronics market, Christmas-like sales campaigns have already begun, sources say. Best Buy and Wal-Mart Stores have started offering Sony’s latest 32-inch LCD TVs for less than $700, while new products from Samsung Electronics are selling at beaten-down prices. Funai Electric also rolled out 32-inch TVs for only $499 in early July.
DisplaySearch said the price competition is expected to intensify and it forecast sales of flat-panel TVs of 40 inches or larger are weakening after a strong run.
“Samsung and Sony won’t drop their current strategies ? competitive pricing ? over the next few years as the flat-screen TV market in North America will see a rather positive growth as the faster policy shift to the U.S.’ digital TVs to spur idle demand for flat-screens,” an LG source said.
“The interesting fact is that the market share of LG and Japan’s Sharp in the LCD TV segment was the same with 7.8 percent, meaning we could drop to the No. 4 position in the third quarter without more measures,” said another LG official.
According to internal analysis by LG officials, LG’s high-end Scarlett LCD TV sets penetrated some 7 percent of the company’s total LCD TV shipments and LG forecast that is going to be close to 10 percent at the end of the year.
But some analysts say LG needs to implement “flexibility” about its TV strategies in the world’s biggest consumer electronics market as the company grabbed the chance to overtake Vizio to become the No. 3 flat-panel TV producer.
See more at KOREAN TIMES