Samsung's TV unit launches first audit in a decade as Chinese rivals make market push

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Samsung's TV unit launches first audit in a decade as Chinese rivals make market push

Published: 26 Jan. 2026, 11:27 Updated: 26 Jan. 2026, 21:57

Audio report: written by reporters, read by AI

Samsung Electronics’ Neo quantum-dot light-emitting diode 8K TV [NEWS1]

Luck alone didn’t make Samsung Electronics the world’s No. 1 TV producer. The company and its employees poured nearly four decades of effort into experiments as small as adding a single inch to the screen, then into innovations that fused design and technology.

Since 2007, Samsung TVs have held the top spot for more than 18 years in both revenue and shipments. Now, the business is facing its first management audit in a decade.

Samsung Electronics’ Visual Display (VD) Business began a management diagnosis in October 2025, the first such review since 2015, according to the electronics industry on Monday. The division leads the company’s TV operations.

The management diagnosis is a form of internal audit aimed at revamping weakened business competitiveness. The review is said to have examined the TV business’s structure and costs, organizational operations and overall new-business efforts, and even considered a possible portfolio reshuffle.

But even three months after the diagnosis began, no clear breakthrough has emerged that has won internal consensus.

Many credit Samsung TV’s rise to product innovation built during the management era of the late former Samsung Chairman Lee Kun-hee. By expanding the screen ratio from 4:3 to 12.8:9 at the time, it shifted the yardstick of TV competition toward size and overall completeness.

The “Bordeaux LCD TV,” introduced in 2006, is widely seen as a turning point in Samsung’s TV history. With a wine glass-inspired design and strong technical performance, the product helped reposition TVs from mere broadcast receivers to objects in the living space, analysts say. It also became a decisive moment behind Samsung’s climb to No. 1 in the global TV market.

Models introduce Samsung Electronics' ultra-slim TV at the Wynn Hotel in Las Vegas, ahead of CES 2026 event that kicked off on Jan. 6. [SAMSUNG ELECTRONICS]

But the formula behind past successes is increasingly seen as no longer working. Behind the management diagnosis is the fast-closing gap by Chinese TV makers. Their push has moved beyond the midrange market into premium territory, including mini-LED and ultra-large TVs, raising questions about the limits of Samsung’s existing strategy. A slowdown in global TV demand is also adding pressure on profitability.

Samsung Electronics’ global TV shipment share fell to 17.9 percent in the third quarter of 2025 from 19.8 percent in 2021, according to market researcher Omdia. Over the same period, China’s TCL rose to 14.3 percent from 11.5 percent, and China’s Hisense climbed to 12.4 percent from 8.7 percent.

“The volume offensive by Chinese makers is directly pressuring Samsung’s premium-centered strategy,” industry watchers said.

In its 2024 executive reshuffle, Samsung appointed Yong to spearhead innovation through a generational shift, naming him the youngest chief among Samsung’s core affiliates to date. But amid weakening demand for home appliances, intensifying competition and policy variables, the business has struggled to gain momentum.

The difficulties are showing up clearly in the results. Samsung reports TV and home appliances together under the VD and Digital Appliances (DA) segment, and revenue fell steadily from 14.5 trillion won ($9.82 billion) in the first quarter of 2025 to 14.1 trillion won in the second quarter and 13.9 trillion won in the third quarter.

Samsung Electronics unveils its new micro RGB TV at ″The First Look″ event held at the Wynn Hotel in Las Vegas on Dec. 4, 2025, ahead of CES 2026. [NEWS1]

Operating profit also dropped from 300 billion won to 200 billion won over the same period, then slipped into a loss of around 100 billion won in the third quarter. The securities industry estimates that Samsung also likely posted an operating loss of between 100 billion won and 300 billion won in the fourth quarter of 2025.

The outlook is not particularly bright, either. Analysts expect operating profit for Samsung’s VD and DA segment in 2026 to fall by more than 20 percent from 2025. Revenue may edge up, but defending margins will be difficult amid falling average selling prices and intensifying competition, they say.

“Given the intensifying competition, weakness in the VD and home appliance business is likely to persist for some time,” said Ko Young-min, an analyst at DAOL Investment & Securities.

Samsung Electronics says the management diagnosis has been wrapped up to some extent.

“This year’s TV market is expected to see slight growth, with several events such as the World Cup scheduled,” said Yong Seok-woo, head of Samsung Electronics’ Visual Display Business. “We reshuffled the lineup and reinforced the premium strategy to reflect the market environment.”

Samsung Electronics' Samsung Art TV [SAMSUNG ELECTRONICS]

Samsung’s internal answer is said to center on its artificial intelligence strategy. But inside the company, some question whether “AI TVs” built around personalized recommendations and smart home connectivity can deliver a decisive edge in an increasingly competitive landscape.

“Even after the management diagnosis, the dominant internal view is that there is effectively no solution that could change the game,” a Samsung Electronics official said. “For the time being, it looks likely that concerns will continue without a clear turning point.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY PARK YOUNG-WOO [[email protected]]