Samsung Electronics: Decrease in BOE proportion in TV panel

Reportedly it has been heard that Samsung Electronics is keeping its distance from China’s BOE. Though, the company has an aggressive TV business plan this year and has reduced the purchase of panels from BOE compared to last year. In this year’s Samsung Electronics LCD TV panel market, China’s HKC is quite expected to overtake BOE to come on rank second whereas the proportion of LG Display is also expected to increase by 5 percentage points.

According to the research done by market research firm ‘Omdia’, it has been said that BOE’s share in the LCD TV panel market of Samsung Electronics is expected to decrease by 4 percentage points this year which comes out to be (13%) from last year comparatively which is (17%).

Again, as data released by Omdia in mid-May shows the TV market situation until March, Samsung Electronics initially planned to procure the largest number of LCD TV panels from CSOT. Now have a look at the percentage of market share of Samsung Electronics with LED panel suppliers:

  • CSOT (21%, 11.4 million units) this year.
  • Next, HKC (20%, 10.6 million units),
  • BOE (13%, 6.8 million units),
  • AUO (11%, 5.8 million units),
  • Sharp (10%, 5.2 million units),
  • Samsung Display (8%, 4.3 million units),
  • LG Display (7%, 4 million units) respectively.

Uncertain BOE numbers to fall

Out of various updates coming, the most notable change is the decrease in BOE volume and market share. It is the same this year that CSOT (20%, 9.5 million units) ranked first in Samsung Electronics’ LCD TV panel market share ranking last year also. However, last year, BOE (17%, 8 million units) was in second place followed by HKC (15%, 7.1 million units) which was at third, and Samsung Display (14%, 6.9 million) was fourth respectively. Also, BOE, which was in second place last year, is expected to drop to third this year, and HKC, which was in third place, is expected to rise to second this year. Although the exact reason for the decrease in the supply of BOE is quite uncertain at this point.

As initially it has been revealed that Samsung Electronics initially had an aggressive plan to increase LCD TV panel shipments this year to 53.8 million units from 13% more than last year which come out to be 47.8 million units, so the decrease in BOE shipments is remarkable. Samsung Electronics’ major LCD TV panel suppliers CSOT (1.9 million units), HKC (3.5 million units), Sharp (1.1 million units), and LG Display (3.1 million units) saw an increase in shipments, while BOE alone decreased by 1.2 million units. Although the quantity of AUO decreased, the decrease was only 100,000 units.

For this reason, some in the industry come up with the interpretation that “Samsung Electronics is deliberately distancing itself to check the increase in the portion of BOE”.

Also while writing this article there’s no appropriate or specific information revealed officially regarding the reduction in numbers of BOE, therefore we only have those pointers which we are aware of till date.


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