For several months, the Chinese manufacturing giant, Xiaomi, has been amongst the top in the smart TV market in China. However, now it seems like its cruising and crushing the segment. Known for its smartphone dominance, the electronics manufacturer has already begun to taste success in the new segment and has taken the pole position in the online smart TV segment within a few quarters of its entry
According to recent data from Avi Cloud (AVC), Xiaomi TV remains top of the Chinese TV market in August 2019.
From the list, the top 10 brands in China’s TV market in August 2019 were Xiaomi, Skyworth, Hisense, TCL, Changhong, Haier, Konka, Cool, Philips, and Samsung. Before this, reports from three authoritative research institutions (Aoweiyun.com, Qunzhi Consulting, and Zhongyikang) shows that Xiaomi TV sale is highest for the first half of 2019 in China.
Xiaomi believes in honest pricing for all its products and is committed to forever limit its profit margin to not more than 5% on our hardware products, which include smart TVs, smartphones and ecosystem products and so on.
According to Li Xiaoshuang, head of XiaomiTV, the company strives to be first in China and nothing else. Lei Jun, Xiaomi’s CEO, also believes that “continuous innovation” is the reason behind the blistering performance. Lei Jun took the 65-inch Mural TV as an example. He pointed out that it won the “Colour TV Innovation Product” award at the “China Intelligent Display and Innovation Application Industry Conference”. It also has other awards like 2019 Top Ten TV Award, High-end Smart Product Award, and Disp Grand Prize-AIoT Technology, etc.
Besides, Lu Weibing, president of Redmi, believes the company’s TV is tops for four reasons. These include easy to use, rich in content, AIOT compatibility, and high quality. MIUI TV and PatchWall TV systems are from MIUI and they lead Internet TV services in China.
The TV is the next big opportunity as smart homes and connected devices ecosystem will grow rapidly in the 5G era. The advent of high-quality streaming services such as Netflix, Hotstar and Amazon Prime has emerged as a key factor in favour of handset manufacturers, as well as in pushing sales of large-screen smart TVs.
Moreover, the increased availability of electricity than a decade ago, far cheaper data tariffs, easy finance options and competitively priced models have also propelled the market opportunity.
Interestingly, in recent times, more and more smartphone manufacturers are entering into Smart TV segment. In addition to market expansion, smartphone assembly requires high-precision touch panels, efficient power management and a near SLR camera experience, which makes the process a complex exercise. Smart TV, in comparison, is an adjacent diversification and an easier one on the research and development complexity scale, with far fewer components.
Also, there is the luxury of higher margins in the smart TV segment, compared to the low single-digit margins offered by smartphones, as several players have priced their phones equal to or less than the manufacturing cost.