Samsung Electronics is moving to reshape its TV business, with a sharper focus on improving its cost structure and streamlining operations as profitability remains under pressure from higher input and shipping costs.
On May 5, Samsung said it expects it will be difficult to secure strong results and profitability in the TV market this year due to rising raw material prices. The company expects second-quarter demand to grow as major sports events such as the World Cup increase, but it sees overall TV demand remaining largely stagnant this year.
A central challenge is the cost of display panels. As panel prices continue to rise, Samsung’s production costs have climbed. According to the company’s business report, Samsung’s spending on display panel purchases rose to 7.9606 trillion won in 2025 from 5.8624 trillion won in 2023, a 35.8% increase in two years.
Logistics costs are also rising. With the war in the Middle East dragging on, ocean freight rates have increased, adding to global supply chain cost pressures. Because TVs are bulky and must be shipped worldwide, higher freight costs can directly squeeze margins.
Organizational efficiency and cost cuts are expected to be key tasks under President Lee Won-jin. Samsung is seen pursuing a shift from a hardware-centered business toward platforms and services while reducing unnecessary expenses.
On the product side, Samsung is pursuing a two-track strategy. In the mid- to low-priced segment, it aims to maintain market share while competing with Chinese brands. In the premium segment, it is expected to focus on advanced markets such as the United States and Europe, centered on organic light-emitting diode (OLED) TVs and ultra-large models. Samsung has recently strengthened its premium lineup by expanding its Micro RGB offerings and has also released new Mini LED models as it seeks to broaden choices and boost share in the mass market.
However, Chinese companies such as TCL and Hisense are rapidly improving their technological capabilities, prompting concerns that hardware differentiation alone may not be enough.
The key, analysts say, will be how much Samsung can widen gaps in platforms and artificial intelligence. If Samsung strengthens service competitiveness by combining its Tizen OS TV operating system with content and AI features, it could open a new path for growth in its TV business.
Kim Won-woo, a vice president in Samsung’s Visual Display Business, said on a recent second-quarter earnings conference call that the company would further solidify its No. 1 position in the global TV market through differentiated product marketing and proactive business responses. He said Samsung will "successfully introduce new models that change the competitive landscape, centered on Micro RGB, OLED and Mini LED, and maximize the launch effect."
* This article has been translated by AI.
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