China's color TV sales exceeded the first quarter of Japanese enterprises LG TV or loss of 24.6 billion



Hana Daetoo Securities (Hanae Daitoo Securities) released a forecast report that, from January to March 2015, LG Electronics' TV business unit may turn from profit to loss, and it expects operating loss for the first quarter of this year to reach 24.6 billion won (about A total of 140 million yuan, the data is for reference only, the same below).

According to Home Power, the first quarter of 2014, LG Television's HE (home entertainment) business unit operating profit of 215.1 billion won, the second quarter profit of 158 billion won. However, starting from the third quarter of last year, due to the intensification of competition in the global color TV market, the operating profit of LG's HE division decreased by 16% QoQ to 134.2 billion won. In the fourth quarter of last year, the operating profit of the HE division where the LG TV business was located dropped sharply to only 1.7 billion won.
According to the home network, in 2012, the total sales volume of the global color TV market was US$111 billion, which fell to US$99 billion in 2013. In 2014, it slightly recovered to US$101 billion. The securities institutions mentioned above forecast that the world color TV market will have a size of about US$102 billion in 2015.

According to a report from Display Search, South Korean TV manufacturers sold 88.5 million TV sets in sales of global TVs last year, Chinese TV makers sold 51.2 million, and Japanese companies sold 44.16 million. In 2014, the top five color TV manufacturers in the world (categorized by smart TV market share) were Samsung, LG, Sony, Skyworth and Hisense. Compared with the rankings of the previous two years, the Chinese color TV brands have already demonstrated the trend of fully replacing Japanese brands.

According to Zuo Yanji, a veteran home appliance observer, Chinese companies are accelerating their search for a new position in the international color TV market. Although the overall strategy of Japanese color TV companies has shrunk, the yen has depreciated significantly and it is objectively conducive to the export competition of Japanese color TV sets, and the world’s color TV sets compete. In recent years, there has been no significant growth in market size. In 2015, the global TV market competition may be much higher than in previous years.

In terms of volume, starting from 2012, global color TV shipments have remained at between 200 million and 230 million units, basically in a stagnant state of growth. Due to the appreciation of the U.S. dollar, the LG TV business unit, which is profiting from overseas television sales, has experienced exchange rate fluctuations in the emerging TV growth market.

According to HomeNet, from 2013 to 2014, Japanese brands such as Toshiba, Panasonic, Sharp, Sony, etc., have announced that they have adjusted, reformed, and even withdrawn from TV production and sales in some countries, indicating that the growth of the global TV market is weak. China's color TV market also entered a period of low growth in 2014, forcing China's six color TV giants to actively go out to sea to find new incremental markets.

The limited color TV market will inevitably cause fierce competition among the major color TV giants. In the past two years, LG TV tried to open new outlets by relying on OLED TV, but the effect was not obvious. Most color TV manufacturers still find new selling points and upgrade technology on LCD TVs.

Analysts in the industry stated that although China TV manufacturers such as Skyworth, Konka, Changhong, and Haier have OLED TV products purchased from LG display panels, the current focus of China's color TV brands is still on the construction of LCD TVs and smart TV content and network service platforms. The next generation of display technology, color TV products will be replaced. In the short term, Chinese manufacturers will not follow-up on a large scale.

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