Samsung regains its No. 1 market share in the smartphone market
LG, TCL sanctions likely to keep second place in TV market
As the US imposed sanctions on companies such as Huawei and TCL in China, Korean companies such as Samsung and LG are expected to benefit from reflection. In the TV market, if TCL collapses, it is expected that LG Electronics, which barely held the second place, will be able to widen the market share gap again. In the smartphone market, Samsung already occupies a vacant place for Huawei.
According to foreign media such as Reuters on the 24th, the US Department of Homeland Security (DHS) is known to be considering sanctions on China’s TCL. According to Reuters, US Secretary of Homeland Security’s acting acting as Chad Wolfe said at a US Heritage Foundation event on the 21st (local time) that “TCL has installed backdoors on all TV sets to infringe user privacy and leak data.” He added, “In Xinjiang Uyghur Autonomous Region, we are considering additional regulations on TCL business activities that are suspected of mobilizing forced labor.”
TCL announced that it was different from the facts about foreign media reports. TCL explained through a public announcement on the Hong Kong Stock Exchange on the evening of the 22nd (local time) that “we have not received any notice regarding the US government investigation.” TCL claimed that “TV products sold in the United States are equipped with operating systems (OS) of Roku or Google, which are partners in the United States,” and “we are jointly updating system security according to the needs of partners.”
He added, “It conforms to the industry rules and technical rules, and meets local legal regulations and security standards.” In addition, he explained, “TCL places great importance on the user’s personal information and data security issues, and considers this as one of the core competitiveness of TCL products.” However, despite this explanation, there is a possibility that the US government will take action in earnest in the future.
In the global TV market, TCL is closely following LG. According to market researcher Omdia, TCL ranked second in TV shipments for the first time in the second quarter of this year. With a market share of 12.7%, LG Electronics (9.8%) was pushed to third place. It is growing continuously, surpassing LG Electronics’ share for the first time. However, if tough sanctions, such as the US’ Huawei sanctions, are imposed on TCL, LG is expected to take the lost share.
Currently, TCL sells more TVs in the US market than in mainland China. If the US sanctions are in full swing, a significant blow is expected. According to Omdia, the US (36.6%) ranked first in TCL TV shipments cumulatively in the first to third quarters of this year, followed by China (27.8%).
When TCL is sanctioned, Samsung and LG are expected to stably occupy the first and second place in the global TV market. According to Omdia, Samsung Electronics ranked first in TV shipments last year with 44.1 million units. LG Electronics is second with 250,000 units. The next is TCL (20.4 million units). This was followed by △Hisense 17.2 million units △Xiaomi 13 million units △Skyworth 10100,000 units △Sony 9.3 million units.
In the smartphone market, Samsung Electronics saw a remarkable profit as Huawei became ill. Since September 15, the US Department of Commerce has imposed sanctions on Huawei in all directions. No company in the world has been sanctioned from supplying semiconductors and electronic components containing US technology or software to Huawei without obtaining approval from the Ministry of Commerce.
With these measures, Huawei has given Samsung Electronics the No. 1 position in the global smartphone market. According to Counterpoint Research, Huawei ranked first in the world smartphone market share (20.2%) for the first time since its inception in the second quarter. Samsung Electronics fell to second place (20%).
However, as the sanctions against Huawei intensified, Samsung Electronics regained its position as the No. 1 smartphone market share (22%) in the third quarter. Huawei came down to second place (14%) again. The gap has since widened. As of October, Samsung maintained the 1st market share (21%), while Huawei was only 4th (11%).
Huawei’s smartphone market share is expected to decline further in the future. Last month, Huawei sold the mid-to-low-end smartphone brand’Honor’. According to the industry, the honor brand accounts for 25% of Huawei smartphone shipments. It is predicted that Samsung Electronics’ solo leader in smartphone market share will continue.
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