China’s TV industry is so strong that Samsung and LG had to team up to survive

What happens when two longtime rivals realise they can’t win the game alone? They join forces. In the fast-changing world of TV manufacturing, Chinese brands are pushing so hard and fast that even giants like Samsung and LG have been forced to rethink their strategy—and swallow a bit of pride.

A rapidly shifting TV market

Once upon a time, TVs were an American affair. Then came the Japanese wave—Sony, Panasonic—and suddenly your living room had a remote control with more kanji than English. Enter the 2000s, and Korean powerhouses Samsung and LG took the throne with dazzling screens and unbeatable tech.

But now? The winds have changed again, and they’re blowing eastward—further east, in fact. China’s TV brands, led by TCL and Hisense, are shaking up the market with a mix of aggressive pricing, relentless innovation, and sheer production scale.

TCL, in particular, is flexing its muscles thanks to its colossal CSOT manufacturing complex, giving it the clout to not only innovate but also snap up critical technology patents. If trends continue, these Chinese firms could soon dominate every segment of the TV market, from budget-friendly models to high-end behemoths.

The OLED problem

Here’s the irony: even as tech advances, the fanciest TV screens are struggling to sell. OLED, once hailed as the gold standard for high-end televisions, is facing a slump. Market research firm Omdia reported a 24% drop in global OLED TV sales between 2022 and 2023—down from 7.5 million to 5.7 million units.

So what’s going wrong? It’s not the picture quality—that’s still stellar. It’s the cost. OLED panels are expensive and fragile to produce, with high failure rates even before they leave the factory floor. That drives up the price, just as consumers are growing more cost-conscious and looking for value-packed alternatives.

In the meantime, LCD and Mini-LED technologies are improving rapidly, getting cheaper, and closing the gap in visual performance. While OLED prices have stagnated or even crept upward, Mini-LED TVs have become more accessible, offering near-premium visuals at mid-range prices.

Samsung and LG make peace

In this high-stakes environment, even the fiercest competitors are starting to see the value of unity. In November 2023, Samsung dropped a bombshell: it was halting investments in its promising QD-OLED technology, a hybrid of OLED and QLED. The reason? The OLED market just wasn’t worth the risk.

What followed was even more surprising. After years of bitter rivalry, Samsung and LG signed a five-year deal. LG Display will supply 5 million OLED panels annually to Samsung, helping it avoid the heavy costs of building out its own production lines. This partnership is less a love story and more a strategic lifeline.

Together, the two Korean giants are hoping to keep their grip on the premium TV segment, but it’s clear they’re now playing defense. And while this alliance might keep OLED afloat a little longer, it doesn’t fix the underlying problem—the tech is still too expensive.

All eyes on China

While Korea is teaming up to stay relevant, China keeps moving forward. In another telling shift, Sony—once a champion of OLED—has reportedly chosen Mini-LED for its top-tier 2024 TVs. That’s a clear nod to where the market is heading.

And just to twist the knife a little further: the most promising avenue to make OLED cheaper in the short term is RGB print OLED. The catch? TCL owns the patents.

So while Samsung and LG are trying to stay in the race, China may already be holding the blueprint for the finish line. The question is no longer just “who builds the best TV?” but “who can build the best TV for the best price?”

Right now, China seems to have the edge.

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