The Declining Fortunes of Sony and Sharp in the Premium TV Market
In the world of high-end televisions, the names Sony and Sharp have long been synonymous with quality and luxury. Just a decade ago, these Japanese brands dominated the premium TV sector, leaving other manufacturers in their wake. But times have changed, and Sony and Sharp are now facing a steep decline in their fortunes.
The Rise of Korean and Chinese Brands
With the rise of Korean and Chinese manufacturers, the once-unassailable positions of Sony and Sharp have been undermined. In the vast Chinese market, while Sharp and Toshiba have been bought out by local companies, Panasonic and other brands have struggled to maintain their market share. Only Sony, relying on its range of high-end TVs, has managed to hold on to a small foothold.
But even this small foothold is shrinking, not just in China but also globally. Data from 2023 on global TV sales reveals that Sony is struggling to compete with Chinese brands, let alone industry leader Samsung. In fact, Sony ranks seventh and Sharp ranks tenth in terms of global TV sales. Samsung leads the pack, followed by LG (also from South Korea) in fourth place. Among the top ten, four pure Chinese brands – Hisense, TCL, Xiaomi, and Skyworth – have surpassed Sony in terms of sales.
It is worth noting that Philips and AOC, though not widely known, are actually Chinese brands. Sharp, on the other hand, is currently managed by Hon Hai Group (also known as Foxconn). These shifting dynamics have had a significant impact on the rankings of Sony and Sharp.
The State of the Premium TV Market
If the above data is not convincing enough, a recent report from Counterpoint Research specifically focuses on the premium TV segment. According to the report, in 2023, Samsung leads the market with a 45% share in terms of sales and a 44% share in terms of revenue.
The next positions are held by LG, TCL, and Hisense, with Sony lagging behind at fifth place with a modest 5% market share in sales and a meager 7% in terms of revenue. In both comprehensive and detailed analyses of market share and sales performance, it is evident that Sony and Sharp have fallen behind their Chinese competitors.
The Reasons Behind the Decline
The decline of Sony and Sharp can be attributed to the progress in display technology, which is at the core of television development. A good TV is ultimately dependent on having a superior display. While Korean and Chinese manufacturers have focused on producing displays with better quality, new technologies, and lower costs, Japanese brands have not kept up with these trends.
As a result, unless the reputation they have built up over the years continues to significantly influence consumer purchasing decisions, Sony’s position in the market may soon disappear.
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