Samsung Electronics, a global electronics giant based in South Korea, is restructuring its TV division as intensifying competition from Chinese manufacturers threatens its 19-year streak as the world’s top TV brand and erodes profitability.
According to industry sources on July 3, Samsung’s Visual Display (VD) business unit has begun one-on-one meetings with some employees as part of an organizational and workforce shake-up. Depending on the outcomes, some staff may be reassigned to other departments. The move is seen as a preemptive effort to improve profitability and reshape the business portfolio.
After a disappointing first quarter, the outlook for the VD unit in the second quarter looks even gloomier. Hyundai Motor Securities forecasts the unit’s operating profit for the second quarter at about $82.7 million, down 47.9% from the previous quarter ($158 million) and 46.1% lower than a year earlier ($153 million).
High-cost projects such as micro-LED displays-seen as a next-generation technology beyond OLED but still struggling with high production costs and low yields-are likely to face cuts. Meanwhile, Samsung is expected to focus resources on large-format, premium models and gaming OLED TVs, which continue to show strong growth despite an overall stagnation in the TV market.
The restructuring comes amid growing fears that Chinese rivals may topple Samsung’s 19-year dominance in global TV sales. Research firm Omdia reported Samsung’s global TV market share fell below 30% last year, at 28.3%, with the gap against Chinese brands narrowing each year.
More troubling for Samsung is that Chinese manufacturers, long dominant in the budget segment through aggressive pricing, are now making inroads into premium and high-end markets. According to Counterpoint Research, Samsung’s share of the premium TV market in the first quarter was 28%, with second-place Hisense of China just 8 percentage points behind-a sharp drop from a 25-point gap a year earlier.
Industry experts attribute this shift to Chinese brands’ focus on cost-effective LCD-based mini-LED TVs, which have gained significant traction despite OLED’s technological edge. Research firm TrendForce projects global mini-LED TV shipments to surge 50% this year to 11.56 million units, while OLED TV shipments are expected to grow just 7.1% to 6.79 million units.
“Korean and Chinese companies alike are betting on premium products to overcome market stagnation,” an industry insider said. “But China’s control of LCD pricing gives mini-LED TVs a competitive edge, while OLED prices remain stubbornly high, making it tough for Korean players.”
A Samsung spokesperson downplayed the changes, saying, “We’re conducting employee interviews across all business units and introducing new HR programs. Reassignments happen as part of our ongoing process.”
