The first Samsung’ Smart Tv has been launched in 2010 and because of this reason, we can’t provide a financial report of 3 years. On the other hand, the use of smart tv’s financial reports are really restricted and you have to buy the book. Global Smart TV Market (2011 – 2016) Critical Capability, Use Case Analysis & Forecast By Accessories, Platforms, Middleware, Application & Geography? that provide all the informations about different companies.
This book is around 5000 US$ so we are going to use different articles that provide informations of the actual and predicted financial situation of Smart Tv by Samsung. However like all the companies, providing a lot of information can make them lose their competitive advantage. That’s why we don’t have detailed information. TV’s in general analysis : In 2011, Samsung sold 47. 69 million TV units, while in 2010, it sold 45. 12 million. For the past five years Samsung has been the leader in term of market share.
Smart TV performance
Firstly, Samsung realized an incredible performance three months after the launch of Smart Tv. In fact in only three months, more than 2 million units were sold. 2 million in 3 month means 22 000 units sold daily. This performance has been a result of a worldwide development with the biggest success in North America where more than 730 000 units sold. 2011 TV market share report, source: Display bank Before being a huge actor in the Smart-TV Industry, Samsung has the biggest market share in the flat screen tv shipments. Being a leader in this industry, become a leader in smart tv industry is the logical results of vents. After these results, and thanks to NDP Group analysis, Samsung enjoys 24,9% of the smart tv’s market share in United states. However the competitors such as Sharp, LG, Sony won’t let samsung enjoy this huge market share without pain. Samsung plans to ship 12 million units in 2011 to compete with Sony’s Google TV so that the market share will be 30% of the global Smart TV market. In 2012, the prices of smart tv fall and that allows more sales. In fact, the shipments climbed by 27% and in 2012, 66 million units have been sold.
After the analysis of the market, in 2015, 55% of tv sales will be Smart TVs. About the performance of Samsung now, we can without any doubt affirm that Samsung’s smart tv were promoted a lot by a lot of advertisments but comparing to the other brands, the proportion of smart tvs shipped on their total tv shipments was only 26% on the first quart of 2012. Is that mean that the reaction from the customers about their Smart TV isn’t well received by customers? Or they have too many TVs so that the proportion of Smart TV doesn’t seem that important?
Saying that it’s the second option will probably be hypocrite because the proportion of tv shipped mean the interest that people give to that tv. If the difference of proportion of smart tv shipped on total TVs differes that much from two companies different questions should submerge. For example, Sony shipped more than 50% of Smart TV, while samsung shipped only 26% of Smart TV on total of TVs shipped. Two reasons can result : Sony’s other TVs are not doing well or Sony’s Smart TVs are doing very well. That’s an important question that can’t be answered by us in this project because the information available isn’t enough to conclude.
If the effort put in the Smart TV’s selling plan isn’t as important as its competitors, Samsung has to find the reason and the solution to avoid big overhead costs like advertising for smart TVs. Is the price too high? Why the competitors do better. Source: DisplaySearch Smart TV competitors Revenue/profit analysis: For this analysis, we are going to compare the biggest competitors in Smart TV industry: LG and Samsung. Unfortunatly, finding information specifically about Smart TV is complicated and limited without paying any fees. In 2012, Samsung generated $184 billion in sales of smart TV during 2012 with a of profit $1. 1 Billion. Its profit margin is : 1. 81/184 = 0,98% LG generated $45. 22 billion in sales of smart TV during 2012 with a profit of $480. 92. Its profit margin is : 0,48092/45. 22 = 1,06%. Sony and Sharp didn’t have any profits and had considerable losses. We can observe that the revenue of Samsung is 4 time LG’s. We can conclude that Samsung dominate the market in term of revenue. We can observe that Samsung make a lot of profit and dominate one more time LG even if LG has 13% of market share. Samsung is doing good even if its profit margin is a little bit smaller than LG.