On the last day of July, Hisense and Sharp jointly announced that Hisense will acquire Sharp's assets and equity in its Mexican plant for US$23.7 million, and will also receive Sharp's brand rights and channel resources in the Americas. This news means that Hisense will fully receive Sharp's business in the Americas, which is conducive to Hisense to increase capacity and sales in the Americas market.
In March this year, there was news that Hisense would buy Sony TV business, but in the end this statement was denied by Sony. Now that Hisense has won Sharp's American business, apart from stating that Hisense is determined to exert itself on television, the decline of the Japanese market in the TV market is evident. Earlier, with advanced technology, Sharp, Panasonic and Sony were the kings of the traditional color TV era, but the three had miscalculated the development of smart TVs, thus giving the domestic TV manufacturers a chance.
Japanese brands continue to defeat the color TV market, which is embarrassing. At the same time, the development potential of smart TVs is eye-catching. With the continuous popularization of color TV products, color TV has moved from a new machine to an era of replacement. Under the Internet's east wind, networking and intelligentization have become a favorable weapon for domestic manufacturers to break through. Smart TV came into being.
According to the data provided by the Industry Research Institute of Forward-looking Industry, the sales volume of smart TVs in China was about 30 million units in 2014, and the market share in color TV reached 70%. With the continuous efforts of home appliance manufacturers and Internet companies, it is estimated that in 2015 TV sales will reach more than 45 million units, of which smart TV sales will reach 35.57 million units, accounting for nearly 80% of the total, a record high. As of the end of June this year, China’s smart TV market has a total of 85.8 million units, with an activation rate of 82% and an active daily user of approximately 25 million. Smart TVs have become the new engine in the TV market.
At the same time, the commercial value of smart TVs in content services is increasingly clear. According to the calculation of 400 million Chinese households, if the user pays a subscription fee of 300 yuan per year, the annual market size is 120 billion yuan; in terms of TV 3,000 yuan/set, the market size is 1.2 trillion yuan. For a period of five years, it will be converted to 240 billion yuan annually. Both add up to a market size of 300 billion yuan/year. Therefore, even if we do not rely on hardware, the profitability of software ecosystems such as TV content, advertising, and other services in the smart TV field is extremely promising. This ultimately led to the rise of Xiaomi and LeTV’s “hardware free, software charging†model.
In the long run, TV hardware technology upgrades will reach the “ceilingsâ€, and the Internet companies will become the “mainstay†of smart TVs in the future. However, at present, the lack of hardware-based Internet companies to launch product quality problems is a major risk hidden, it is worthy of vigilance and continuous improvement.
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