Samsung to beef up TV marketing
A model poses next to a 75-inch ultra-high definition Samsung Electronics television at a launch event at the company’s headquarters in downtown Seoul, Tuesday. / Courtesy of Samsung Electronics
By Kim Yoo-chul
Samsung Electronics said Tuesday that it will beef up marketing of its TV range to solidify its leadership and further widen its gap with notable competitors, such as LG Electronics.
``Value is the critical factor. Samsung TVs are different from other TVs in terms of value. Samsung will be focusing on ultra high-definition (UHD) TVs sized over 65 inches,’’ said Yoon Boo-keun, the head of the firm’s consumer electronics division, at a news conference in Seoul.
It has introduced a new lineup of advanced Web-connected TVs. While LG has decided to charge 25 million won for its 84-inch UHD TV, Samsung’s 85-inch UHD TV costs 40 million won.
``Smart and evolved televisions are designed to understand consumers. The 85-inch UHD TV has those two factors,’’ the executive told reporters.
He stressed that he doesn’t see any hurdles to becoming the world’s top TV seller for the eighth straight year. Samsung aims to sell 60 million flat-screen TVs this year.
TV manufacturers are increasing their focus on pricier models that offer high profit margins as sales slow amid a shift in consumer preference toward portable devices such as tablets and smartphones.
Responding to a question about LG’s aggressiveness in the sale of organic light-emitting diode (OLED) TVs, a senior Samsung executive said that LG’s pitches for OLED TVs aren’t threatening Samsung in any way.
``Samsung was the first to sell Web-connected TVs and the key hidden factor for the success of Samsung TVs is viewing quality,’’ said Kim Hyun-seok, senior executive at the firm’s visual display division, separately.
``The market for TVs over 60-inches will grow by more than 30 percent this year; however, we believe this growth will rise to between 35 percent and 40 percent. We will lead the market. This market is the right territory that we can do better. That’s why we are investing more for TVs sized over 60-inches,’’ said Kim.
The division boosted operating profit to 740 billion won last quarter from 540 billion won the previous year driven by high-margin models featuring three-dimensional (3D) capability and LED backlighting technology.
Amidst concerns of a strengthening won with talks of a weaker yen, Yoon maintains that the impact has so far been “marginal.”
``Because we roll out products from our overseas factories, I can say a stronger won isn’t threatening us. Rather a stronger Euro is posing some threats and we are closely monitoring the Euro move,’’ Yoon responded in a question by local reporters.