IHS Markit: TCL is North America's top TV vendor

5 Juin 2019, 03:34:22

IHS Markit: TCL is North America's top TV vendorAccording to an IHS Markit survey, China-based TCL has become the top TV vendor in North America during the first quarter of 2019. The company's unit shipments surged by 112% year-on-year and in Q1 of 2019, TCL holds a 26.2% share of the shipments. Samsung loses its first place and is now second with a 21.8% share of the shipments. For comparison, a year earlier it had 28%. Vizio is third in with a 13.7% share, followed by LG and Funai.

At the same time, in terms of revenue, things inverse. Samsung maintains its top position with a market share of 36.9%. Logically, this is due to the higher prices of Samsung TVs and its focus on large size high-end sets. This revenue almost doubles the one of the second in line - LG, which has a market share that's a bit higher than 18%. TCL is third with almost 15%, followed by Vizio and Sony.

The overall unit shipments for the North American TV market recorded an almost 30% year-on-year rise reaching a historic high of 9.3 million units. This increase is also due to the lowering of prices of TV sets, especially those of large-sized units and by the increase in sales of sets with screen sizes smaller than 55 inches.

"Amid rising concerns about tariffs arising from the U.S. China trade dispute, TCL and other TV brands that rely heavily on China-based manufacturing have been increasing shipments dramatically," said Paul Gagnon, research executive director at IHS Markit. "As uncertainty mounts around a possible tariff-driven rise in costs, these brands have been bolstering shipments to protect against any potential disruption. Given that margins for TVs are relatively low compared to other consumer-electronics categories, any tariff increase would have a major impact on sales."

The survey also sheds some light on the Chinese TV market, which is the largest in the world. Xiaomi retains its first place for a fourth consecutive quarter, reaching a record shipment share of more than 19% in the first quarter. This represents the highest single quarterly market share posted by any Chinese brand in China in more than six years. This is due to the company's tested-and-tried strategy of aggressive market pricing and direct-to-consumer business model that reduces costs. Source

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