By Ouyang Jing, Staff Reporter
On September 16, industry sources revealed that the Visual Display (VD) Division responsible for Samsung Electronics’ TV business has recently initiated a management review. The last time Samsung Electronics launched a comparable review for its TV business was ten years ago, in 2015. Restarting this process in September 2025 underscores the profound shifts in the global TV market—particularly the intense competitive pressure Samsung faces from the rapid rise of Chinese companies in Mini LED technology.
The core reason behind Samsung’s renewed review is the full-scale advance of Chinese brands in the global TV market, especially in high-end technologies. Market data show Samsung Electronics’ share has fallen from 21.9% in 2020 to 17.6% in 2024, while TCL and Hisense climbed from 10.7% and 8.1% to 13.9% and 12.3%, respectively. In the high-end segment above USD 1,500, Samsung’s share declined from 39% to 28%, while the combined share of Hisense and TCL rose by 12 percentage points to 39%. Leveraging strong supply-chain integration, cost control advantages, and rapid technology iteration—particularly in the pivotal Mini LED track—Chinese brands have overtaken traditional giants.
Samsung’s TV profitability has also deteriorated significantly, forcing deeper introspection and adjustment. According to Korean media projections, operating profit at Samsung’s VD Division may plunge from KRW 1.1 trillion to KRW 635 billion this year. Meanwhile, its inventory cycle had already stretched to 17 weeks by the end of March 2025 and spiked to 19 weeks in April—well above the industry caution range of 8–10 weeks. This compels Samsung to reassess its TV business structure, product mix, and cost controls. Reports indicate the VD Division has expanded voluntary retirement packages for director-level and above, halted transfers in from other divisions, and launched broad organizational slimming to improve workforce efficiency.
Samsung also faces challenges in its technology roadmap. For years, it bet on QLED and Micro LED and wavered on OLED TVs. Yet Chinese brands’ success in Mini LED—and Samsung’s setbacks in that market (by Q4 2024, Samsung had fallen to fourth globally in Mini LED TVs, overtaken by China’s Hisense and TCL)—has forced a recalibration of its high-end technology strategy.
Whether Samsung can break out under the intense pressure from China’s Mini LED ecosystem is a complex question. In the short term, through internal reviews, tighter cost control, organizational optimization, and a focus on high-end differentiators (such as Micro LED and AI-enabled experiences), Samsung may be able to stem the decline and preserve its image as a technology leader in the ultra-premium tier. If executed well, its dual-track OLED strategy could also help counter Chinese brands at the high end and challenge LG’s dominance in OLED. Over the longer term, however, the hurdles remain steep. Chinese brands are not slowing in the technology race; they have established leadership in Mini LED, achieved industry-first mass production in RGB Mini LED, and are actively building reserves in next-generation display technologies such as Micro LED. Some analysts even argue that if current trends continue, Hisense is poised to overtake Samsung as soon as next year, with TCL potentially doing so by 2028.
Samsung’s management review and the challenges it faces carry clear implications for China’s LED display companies. Chinese enterprises should continue to increase R&D investment in advanced display technologies, such as Mini LED, Micro LED, and OLED, aiming not only for mass-production capability but also for breakthroughs in core technologies and intellectual property, moving from following to leading. Moreover, robust end-to-end supply-chain integration remains a core advantage. Much of China’s Mini LED success stems from a comprehensive industrial-chain layout. Chinese LED firms should further consolidate this edge by deepening upstream–downstream collaboration, strengthening supply-chain resilience, and enhancing security.
Conclusion
As RGB Mini LED continues to break through and expand its applications, China will keep playing a leading role in this pivotal technology, shaping the future display landscape. Samsung’s predicament is a reminder that technology leadership is not the finish line; meeting consumer needs is what truly matters. For China’s LED display companies, this is a moment to self-reflect, learn, and plan. Only by staying committed to innovation, prioritizing user experience, and balancing global vision with localized operations can they navigate the shifting currents of the global display industry and achieve steady, long-term growth.
