Despite a focus on premium models, Sony lags behind Samsung and LG
By: Sohrab Osati
Tags: Samsung, LG, Tech, Home Theater, Sony

Despite a focus on premium models, Sony lags behind Samsung and LG

Oh boy, where to even start. One of biggest strategic shifts Sony made in the last decade has been a transition to more premium products, especially with their home theater division which includes TVs, speakers, receivers, and various players. The idea came from a realization that they (Sony) were unable to keep up with other industry players in the lower-end market where margins are razor thin and profits are made by selling in high volume. With a shift towards premium products, Sony knew their total sales volume would shrink, but that they’d be more profitable with devices that higher margins attached to them.

Well, if the first quarter of 2019 is any indication, Sony got their wish, in that their sales volume has shrunk, except to a near non-existence. Rasmus Larsen writes for FlatpanelsIsHD:

The US premium LCD TV market is led by Samsung with a dominating 82.6% share, followed by LG’s LCD TVs that account for 10.6%.

That means that, in the premium segment, there’s only 6.8% marketshare left for Sony and others to battle over in the US, seeing how 93.2% of the market is accounted by Samsung and LG. And with no shortage of other players in the market, Sony likely holds at best 2–3% of the market which might as well be none.

Over in Europe, things are at least looking better for Sony.

LG leads the European OLED TV segment with a 56% share compared to Sony’s 20.9% share. LG has managed to widen its lead in recent months.

It’s worth noting that ‘premium TVs’ include any set that’s priced above $2,500. A near 21% marketshare is certainly far more respectable, but depending on how LG continues to perform as well as Samsung, it’s going to be interesting to see what marketshare Sony holds in Europe a year from now.

As I’ve noted before, a big hurdle Sony faces is that they continue to believe they’re a tech company and want to be known as a premium brand while utterly failing to live up to being a premium tech company.

It’s one thing for them to lose to Samsung, which is sad on its own, given the history and the prowess Sony once held,

but it’s something entirely different to also be losing out to Vizio.

At this point, we’ve reached a point that most TVs, even cheap units, look good enough and often the deciding factor comes down to either size/price or features. The 2019 lineup of Bravia TVs were announced way back in January at CES 2019 and have been on the market for a few months now. Yet the features Sony promised, like HomeKit and AirPlay 2 support, are nowhere to be seen or even mentioned on their website, making their low marketshare an obvious outcome. This is doubly true if you’re purchasing a premium TV where you expect the latest and greatest tech.

As an obvious fan of the company, it’s quite frustrating to see their dramatic decline in the consumer space and even their shift towards a more entertainment company has been a mixed bag.

At this point, PlayStation, Alpha cameras (which sell in low volumes as do cameras in general), and their sensor division aside, does Sony have a single division that hasn’t shrunken into oblivion?

What do you think ails Sony the most — a lack of talent or mismanagement?