Korean TV Makers Dealing as Official Holiday Season Begins
Macroeconomic conditions are weighing on TV purchases, with LG and Samsung having Q3 revenue drops in their TV units last week as the traditional November-December holiday season kicks in.
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Overall market demand for TVs increased from Q2 but narrowed year on year due to macroeconomic headwinds affecting consumer demand, Samsung said. The company’s Visual Display and Digital Appliances businesses had $10.3 billion consolidated revenue and $174.9 million operating profit in Q3, but the Visual Display business had an earnings decline on weaker demand, higher costs and unfavorable currency exchange rates.
In Q4, Samsung expects market demand to improve on year-end seasonality, “but macroeconomic uncertainties are expected to persist.” It’s looking to Black Friday and global sports contests as tentpole events to spur sales, and plans to focus on its higher priced Neo QLED, lifestyle and “super-big” TVs.
For 2023, Samsung expects overall TV demand to remain “stagnant amid various external uncertainties” but expects demand for premium products, including ultra-large-screen models, to keep growing. It plans to provide “new customer experiences that connect various products and screens.”
LG Home Entertainment had a $38.8 billion operating loss in Q3 on revenue of $2.6 billion, the company said Friday. Results reflected higher marketing investments in response to “intensified market competition,” it said. The company will focus on managing marketing expenses, boosting the premium TV segment and improving inventory management, it said.
Ultra-large TVs at vendor and retail websites we viewed showed Black Friday sale prices on Halloween. LG hawked its premium 77-inch OLED evo C2 TV at $1,000 off to a “Black Friday price” of $2,499. It was the same price at Best Buy, which also called it a “Black Friday deal,” but for $800 off, reflecting the minimum advertised price. The retailer offered it with 24-month financing at $104.17 a month. The 83-incher in the C2 series was $3,999 at Best Buy, down from $5,299.
A search for TVs at Samsung Monday had virtually all TVs tagged as a “Black Friday Deal.” The premium 85-inch QN800B Neo QLED smart TV was shown as $2,500 off to $3,999. Best Buy had the same “Black Friday” price, but showed it as savings of $1,500. Best Buy is offering the TV with a free Xbox controller, valued at $59.