LG Considers TV Division Sale as Chinese Competitors Gain Market Share

LG Electronics is reportedly contemplating either selling or significantly restructuring its television division as Chinese competitors TCL and Hisense expand their market presence. In the fourth quarter of 2025, TCL and Hisense together accounted for 30.2% of global TV shipments, surpassing the combined 26.2% share held by Samsung and LG for the first time, according to Yicai citing Omdia data. LG's individual market share declined to 9.8%, down 3.3 percentage points compared to the previous year.

The financial performance of LG's TV segment has also deteriorated, with operating profits historically limited to 1–2% and recent quarters showing losses. Meanwhile, LG Display, the company's panel manufacturing division, has ceased LCD TV production to focus exclusively on OLED technology. This shift requires LG Electronics to source panels externally, often from Chinese manufacturers who are also its retail competitors, creating a costly challenge without a straightforward resolution.

Market analysts in Seoul and on Wall Street increasingly view LG's TV business as a legacy operation that drains resources rather than a growth area. The company’s investments in electric vehicle battery components and business-to-business display systems provide financial flexibility that may allow LG to reduce its consumer TV involvement without signaling a full withdrawal.

Comparison with Sony's Strategy

LG's situation is reminiscent of Sony's experience with its TV business. Sony endured prolonged losses before entering a joint venture with TCL, forming Bravia Inc. in March 2026. Under this agreement, TCL holds a 51% stake while Sony retains 49% and full ownership of the Bravia brand. Operations are set to begin in April 2027, with Sony maintaining control over software, image processing, and branding, while TCL manages manufacturing.

According to reports from Korean news outlet EBN, LG executives have conducted confidential meetings with Hisense in Beijing. These discussions were publicly described as partnership talks but are interpreted by the market as potential exit negotiations. LG has not officially commented on any plans to sell its TV division. The Korea Herald highlighted in April 2026 the increasing earnings pressure on both Samsung and LG as Chinese companies benefit from supply-chain advantages.

Potential Impact on Consumers

Should a transaction materialize, it is anticipated to resemble Sony's arrangement, with the LG brand continuing to appear on products manufactured by Hisense. The phrase "Designed by LG" on televisions built by Hisense could become a reality. Currently, LG's OLED TV lineup remains available and unaffected by these developments. Nonetheless, consumers and stakeholders engaged with LG's ecosystem should monitor this situation closely over the coming year.