As discussed in an earlier edition of the THIS IS QLED TV series (Part 2), premium TVs worth more than $1,500 account for just five percent of total TV sales, but have a much larger business impact, accounting for 20 percent of sales revenue and 40 percent of profits.

Attendees at a QLED TV launch event in June 2017, in Brazil, take in the display’s immersive visuals.

Samsung Has Over 40% of Market Share in Most Regions

According to Samsung’s own statistics, Samsung TVs maintained their first place standing in the over-$1,500 global premium TV market in the second quarter of 2017, with more than 40 percent of market share by sales volume in all the major global markets, except China, where it was number one but with around 30 percent market share. Samsung’s market share remained above 40 percent in North America and Europe, the major battlegrounds of the global TV market. Samsung TV also recorded approximately 50 percent market share in Central and South America, and a higher percentage than all other competitors combined in the Middle East, CIS, African and Korean markets.

Samsung launched its flagship premium QLED TV in 2017, starting in North America in March. Samsung’s QLED TV, which combines great picture quality and lifestyle design, has led the outstanding performance of Samsung premium TV all over the world. In particular, Samsung’s share in North America’s high-end TV market, including QLED TVs, has increased sharply over the previous quarter.

Strengthening Samsung’s Premium Image with Glocalization Strategies

Samsung is pursuing local and global strategies which provide customized services tailored to each region while delighting TV consumers around the world with differentiated benefits. Samsung offers a five-year display warranty and a 10-year burn-in guarantee for all 2017 QLED TV products*. This guarantee period is much longer than the usual TV warranty period of one to two years, and stems from Samsung’s confidence in the display durability of its technology in terms of image retention and burn-in.

Additionally, Samsung has added its new “All Care Protection” function this year in hot and humid regions such as Africa and Southeast Asia. This function goes a step further than the existing “Triple Protect” technology which protects the TV against lightning, moisture and abnormal voltage. All Care Protection further enhances the longevity of Samsung’s TVs by preventing dust and insects from getting inside the set.

Samsung is also providing a Connected TV service in Southwest Asia, including India, which enables users to view photos and videos from their smartphones on a large screen TV even without an internet connection. Another new service is Samsung Family TV 2.0 in China, which allows users to send text messages, photos and emoticons to their parents’ TVs via their smartphones using QQ, the country’s top mobile messenger.

Samsung offers a five-year display warranty and a 10-year burn-in guarantee for each of its 2017 QLED TVs.

Expanding Its Selection of Premium TVs

Samsung offers three types of QLED TVs with the Q7, Q8 and Q9 models that come in different shapes (flat and curved) and sizes ranging from 49 to 88 inches. The company plans to provide an even broader selection to global premium TV consumers by expanding the models available in each product line in the second half of the year.

In addition, Samsung’s “The Frame” has recently come onto the global market, equipped with a unique appearance reminiscent of a picture frame and an artificial intelligence (AI)-based display. Alongside the QLED TV, The Frame is leading Samsung’s growth in the premium TV market. The company will unveil more details about its market-leading premium TVs at the IFA 2017 exhibition starting on September 1, 2017, in Germany.

“As we enter the UHD TV era, consumers are demanding a screen wider than 60 inches and a clearer picture without image retention or burn-in,” said Jong seok Choo, Executive Vice President of the Visual Display Business at Samsung Electronics. “In the second half of this year, we will expand the QLED TV and The Frame product lines to further strengthen our position in the premium TV market, which is the main battlefield in today’s TV market.”

Seeing Samsung’s The Frame hung on a wall begs the question: Is it a work of art or a television?

*Details of the guarantee for 2017 QLED TVs vary by country, and the policy will gradually be introduced to other countries as the QLED TV is launched in each market.

For example, when most manufacturers showcase their wares at CES, the world’s biggest consumer electronics tradeshow, they highlight offerings that target the premium segment of the TV market. But why exactly do TV manufacturers compete so fiercely to cater to such a small selection of consumers?

Premium TVs: A Golden Goose for Manufacturers

Although premium TVs account for just five percent of global sales, for many manufacturers they are a golden goose, accounting for roughly 20 percent of total revenue and 40 percent of total profits. In other words, if a manufacturer was to lose ground in premium TVs, it would most likely lose out on the entire market.

Just three years ago, most TVs targeted at the premium sector carried price tags of over $1,500. Today, fierce competition has lowered prices, which means consumers can easily find premium TVs at a base price for $1,200. Don’t let the markdowns fool you, though; premium TVs are still, on average, more than twice the price of most TVs on the market.

A Leader in the Premium Sector

Over the past several years, Samsung Electronics has established itself as a leader in premium TV innovations. This year’s launch of QLED TV, Samsung’s flagship TV line, will reinforce its position as a leader in this area.

Last year, Samsung accounted for 47 percent of sales of TVs priced at over $1,500, and 48 percent of TVs priced at over $1,200, respectively. In other words, Samsung products represent half of the total number of premium TVs in the global market today.

In addition, in the first quarter of this year, Samsung recorded a 60 percent share in the US market for TVs priced at over $1,500, which is higher than the respective shares of all of its competitors combined.

Samsung’s position is solid in European market as well, where it garnered a market share of over 40 percent during the same period. The company has also firmly established its position as a leading manufacturer of premium TVs in China, the largest market in the world. There, four out of ten premium TVs sold in the first quarter of this year were produced by Samsung.

Samsung’s New Flagship TVs

What exactly do premium TVs offer? Well, along with a high price tag, today’s high-end TVs typically feature UHD (Ultra High Definition) resolution and measure over 60 inches across.

Samsung also leads the markets for UHD and widescreen TVs – a position that is even more evident when it comes to 65- and 75-inch widescreens. In fact, last year, Samsung products accounted for well over 40 percent of the global sales of TVs measuring over 60 inches.

In accordance with the widescreen TV trend, Samsung has launched two 75-inch QLED TVs in the US, Europe, China and Korea.

The curved Q8 offers an immersive viewing experience, coming with a full metal body and offering its audience a crisp, comfortable view (at any angle) that only a premium TV can offer.

The back of the flat screen Q7 features a natural, wavy pattern, and its body reflects contemporary, minimalist aesthetics. The bezel-less design and clean back look great whether mounted on the wall or positioned on a stand, and offer viewers an excellent viewing experience either way.

“The Q8 and Q7 are our flagship products that have combined one of the most advanced TV technologies in the current era and minimalist design,” said Moonsoo Kim, Senior Executive Vice President of Samsung Electronics’ Visual Display Business. “The two will make it clear, in the global TV market, that a premium TV means Samsung, and we are excited about that.”

In the first segment of the “THIS IS QLED TV” series, Samsung Newsroom will illustrate how the company is working to lead the premium TV market with the QLED TV.

QLED TV Becoming a Trend in China

Premium TVs that utilize Quantum dot technology are rapidly becoming more popular in China – the largest TV market in the world – thanks to the efforts the QLED TV Alliance, led by major distributors and manufacturers including Samsung Electronics.

Quantum dot TV sales made up around 1 percent of the total TV market in the first quarter of this year. By second quarter in early May, however, the sales volume increased to 2.4 percent. With the launch of Samsung’s 2017 QLED TV, the sales again increased to 3 percent by China’s May Day holiday, which is typically when the market reaches its highest point in terms of sales. Currently, Samsung makes up 80 to 90 percent of the Quantum dot TV market share in China.

On the other hand, OLED TV, the leading competitor in the premium TV market, made up 0.3 percent of sales in the first quarter and has yet to exceed 1 percent in the second quarter.

In fact, Quantum dot TV sales have been four times higher than those of OLED TV this year. This number is expected to grow, due to the advantages of Quantum dot technology, such as superior picture quality, a long lifespan and more accurate colors at varying levels of brightness.

Scenes from the 2017 QLED International Forum, held in China (left), and QLED Technology Forum in Germany (right)

Full-fledged Sales in the US and Europe

Samsung commenced QLED TV sales in the US and Europe this past February and March, respectively. Now, Samsung is preparing to roll out its entire QLED TV line-up, with products including 49, 55, 65 and 75-inch models. Weekly QLED TV sales rates accelerated by more than four times in early May compared to the beginning weeks of the sales launch.

Fueled by this year’s strategic product QLED TV, Samsung’s market share stands firm in the premium TV market in the US and Europe. Up until the end of this past April, one out of two premium TVs sold in the US was a Samsung television priced at $1,500 USD or more. Samsung is also leading the European premium TV market with a market share of approximately 40 percent.

Other global markets are also responding positively to Samsung’s premium TVs. During the first quarter, Samsung obtained more than half of the shares in the premium TV market in Latin America, particularly in Mexico, where the company showed strong sales exceeding 60 percent.

QLED TV and The Frame to Fortify Samsung’s Pole Position in the Premium Market

In addition to the expanded range of QLED TV products and screen sizes that will hit shelves worldwide starting in May, Samsung is also preparing to launch The Frame, further transforming the premium TV market.

“QLED TV not only offers superior picture quality, but is also a product that beautifully reflects consumers’ lifestyle in its design and functions,” said Yoon Lee, Senior Vice President of Visual Display Business at Samsung Electronics. “By introducing The Frame, which elevates the television to a work of art, we will set a new standard in the global premium TV market.”

The Frame