Samsung Electronics has put software and content specialist Lee Won-jin in charge of its Visual Display (VD) Business, which oversees the company’s TV operations. It is the first time in about 20 years that the VD unit has been led by someone without a hardware development background, since former vice chairman Choi Gee-sung in 2007.
The move is widely seen as a bid to counter low-priced competition from Chinese brands by shifting from a hardware-centered approach to a strategy built on platforms and artificial intelligence.
Industry officials said Samsung on May 4 appointed Lee, who previously worked at Google, as head of the VD Business, signaling a broader shift in its TV strategy. The personnel change is being interpreted as more than a reshuffle, pointing to a restructuring toward software and services.
Samsung has long held the No. 1 spot globally in TV revenue, but it has faced growing pressure on profitability and market share amid aggressive pricing by Chinese rivals. According to market researcher Omdia, Samsung’s share slipped from 30.1% in 2023 to 29.1% last year. TCL and Hisense posted shares of 13.1% and 10.9%, respectively, pushing their combined share into the mid-20% range and narrowing the gap with Samsung.
Samsung is accelerating efforts to strengthen its platform business around its Tizen TV operating system. The company aims to generate recurring revenue beyond one-time TV sales through its ad-supported free streaming service, Samsung TV Plus. The service has expanded, with monthly active users topping 100 million worldwide as of January this year.
Competition in the global TV market is also intensifying around platforms rather than hardware alone. Omdia forecast that Hisense’s V (formerly Vidaa) will surpass LG Electronics’ webOS in shipments in Europe this year. The Connected TV Marketing Association estimated that in 2024, Samsung’s Tizen OS led the smart TV OS market with a 12.8% share, followed by Hisense V at 7.8% and LG’s webOS at 7.4%.
Samsung is also expanding its lineup of TVs with stronger AI features. It plans to apply AI functions to 99% of its new TV models this year as it pushes broader adoption of “AI TVs.” The company is positioning the strategy as a way to secure an edge through high quality and differentiated services, rather than competing primarily on low prices.
* This article has been translated by AI.
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