Average selling price of premium smart TVs up by 21% YoY: Kagan report – Business Today
With consumers confined to their homes during the early days of the pandemic, there was a significant surge in the demand for smart TVs across the globe. But the demand has started to cool down to the pre-pandemic level. As per latest data from media research firm Kagan, which is part of the S&P Global Market Intelligence, even though the economic challenges and price jump has contributed t…….
With consumers confined to their homes during the early days of the pandemic, there was a significant surge in the demand for smart TVs across the globe. But the demand has started to cool down to the pre-pandemic level. As per latest data from media research firm Kagan, which is part of the S&P Global Market Intelligence, even though the economic challenges and price jump has contributed to the shipment decline, yet there was a 10 per cent year-on-year (YoY) growth in Q1 2022. Smart TV revenues are estimated at $16.63 billion in the quarter.
Amidst all this, there has been a shift in product mix. Most smart TV vendors have been increasing the proportion of high-margin premium products in response to component shortages by raising the average selling price by 21 per cent YoY, and to an estimated $496, says the Kagan report. However, low-end and mid-range markets is where competition on price remains stiff, keeping overall ASPs from going completely out of control.
Despite declining smart TV shipments, pockets of growth remained among emerging markets, fueling growth for young brands like Xiaomi and TCL. Both Chinese companies are growing at least twice as fast as the more well-known Korean and Japanese brands with 19 per cent and 27 per cent, respectively YoY installed base growth in Q1 2022. Samsung’s Tizen-based Smart Hub maintained the largest OS installed base worldwide with an estimated 23.1 per cent share. Alphabet’s Android TV is close to overtake LG’s WebOS to be the second-largest smart TV platform by footprint.
“Competitively priced models from the Chinese TV makers have become attractive options compared to more traditional brands, as smart TV adoption gradually grows among emerging markets like India, Latin America and the Asia Pacific,” said Milan Ringol, Research Associate at Kagan, part of S&P Global Market Intelligence
While the temporary boom-and-bust cycles in demand can have significant impact on near-term results, gradual smart TV adoption in emerging markets will have a greater impact to overall shipment volumes and revenue in the long run.
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