SEOUL, May 04 (AJP) - Samsung Electronics has replaced the head of its television business as South Korean TV brands' long-held dominance over global premium market is being threatened by Chinese rivals whose price appeal has been reinforced with open-source artificial intelligence features.
Once-household TV names Samsung and LG Electronics are increasingly being squeezed on global shelves by Chinese competitors repowered with AI specs.
According to 2025 data from Counterpoint Research, Chinese manufacturers TCL and Hisense captured a combined 25 percent share of the global TV market by shipment volume, overtaking the combined 24 percent held by Samsung and LG. Samsung accounted for 15 percent and LG 9 percent.
The competitive shift became more visible in December 2025, when TCL briefly surpassed Samsung in monthly TV shipments to claim the global top spot.
The rise of Chinese manufacturers has coincided with their rapid adoption of low-cost, high-efficiency AI models such as DeepSeek across consumer electronics. Companies including TCL and Haier are integrating open-source large language models into televisions and home appliances to provide advanced voice interaction and smart-home functions once viewed as strengths of Korean premium brands.
Against that backdrop, Samsung Electronics on Monday announced a surprise leadership change in its visual display business, appointing President Lee Won-jin, head of the company’s Global Marketing Office and a former Google executive, to replace President Yong Seok-woo as division chief.
The reshuffle is widely viewed as a strategic shift toward strengthening Samsung’s AI ecosystem and software capabilities rather than relying solely on hardware competitiveness.
“With the integration of on-device AI in home appliances, data security and the ecosystem connecting these devices have become paramount,” said Chae Sang-mi, a professor of business administration at Ewha Womans University. “The appointment of a former Google executive suggests Samsung may be pivoting toward a premium, AI-centric ecosystem that leverages data and device networks to differentiate itself.”
Industry observers say Samsung is increasingly attempting to counter Chinese manufacturers not only through premium hardware, but also through platform-based services such as its ad-supported streaming platform Samsung TV Plus and broader connected-device ecosystems.
Samsung’s visual display and digital appliance businesses reportedly posted a combined annual operating loss of around 200 billion won ($145 million) last year, reflecting mounting pressure in the mass-market segment.
Japanese daily Nikkei reported late last month that Samsung is considering withdrawing its TV and home appliance sales operations from China by the end of this year, although manufacturing operations would remain in place.
Asked about the possibility during a public event in Seoul last month, former visual display head Yong acknowledged that the Chinese market remains “challenging” and said the company was “reviewing the business in various ways.” Samsung said Monday that it has “no official position yet” regarding the reported withdrawal.
Chae said such a move would reflect broader structural changes in the global electronics market.
“As Chinese brands upgrade from budget to premium strategies with AI capabilities, Samsung’s market share in standard segments has inevitably dropped,” she said. “From a business perspective, exiting low-margin areas to focus on high-value premium products is a necessary strategic move.”
Despite losing ground in overall shipment volume, Samsung and LG continue to dominate the ultra-premium segment.
According to market research firm Omdia, the two South Korean companies accounted for nearly 80 percent of global revenue in televisions priced above $2,500, with Samsung holding 49.6 percent and LG 30.2 percent. TCL and Hisense each accounted for roughly 1 percent in the premium category.
Still, analysts say the broader competitive landscape is shifting quickly as AI lowers software barriers and accelerates the rise of Chinese consumer electronics brands beyond low-cost manufacturing.
For Samsung, the challenge is no longer simply maintaining leadership in televisions, but defending its ecosystem advantage in an AI-driven consumer market increasingly shaped by Chinese competitors.
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