The average selling prices (ASP) of TVs from both Samsung Electronics Co. and LG Electronics Inc. fell in the first quarter of 2025, signaling a shift from the South Korean tech giants’ traditionally premium-focused strategies.

The development comes amid weakening global demand and aggressive low-cost competition from Chinese manufacturers and is viewed as a move to prioritize market share over short-term profitability.

According to their quarterly reports released on Monday, Samsung Electronics’ first-quarter ASP for TVs dropped about 6 percent from the previous year’s annual average, while LG Electronics’ ASP declined by 5.5 percent.

The decline is attributed to weakened consumer sentiment amid an economic downturn, prompting both companies to adopt more aggressive discounting strategies.

As a result, mid-range models outsold high-end products, leading to a lower overall ASP.

According to market research firm Counterpoint Research, China’s TCL Technology Group Corp. overtook LG Electronics in the fourth quarter of 2024 to become the second-largest global premium TV brand by shipment volume.

TCL is rapidly expanding its share even in high-end segments, strengthening its global presence.

Industry observers view this as a sign of intensifying competition in the TV market.

As Chinese manufacturers ramp up their price competitiveness and technology investment, Samsung and LG are also expanding their mid- and low-end lineups and adapting their strategies accordingly.

This reflects a more flexible approach that preserves their premium image and technological edge while responding to diversified market demand.

Yong Seok-woo, president of Samsung Electronics’ visual display division, said at an event in April 2025 that the company would “expand its premium OLED and Neo QLED TV offerings and promote the popularization of artificial intelligence (AI) TVs.”

Both companies are now focusing on differentiation through added value - such as content, connectivity, and platforms - as technology gaps narrow.

Samsung is emphasizing AI technology and its SmartThings-based connected ecosystem, while LG is concentrating on expanding its webOS platform ecosystem.

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