In the early days of the Internet TV boom, LeTV sparked a revolution, prompting competitors like Xiaomi, Hisense, and traditional TV manufacturers to launch their own Internet TV brands. However, LeTV's fortunes took a sharp turn when its business faced significant challenges, leading to a dramatic drop in shipments. Some had hoped that Internet TV brands like Xiaomi would fill the gap left by LeTV, but the market didn't quite work out that way.
According to Ovid Consulting data, LeTV's shipments in the first three quarters of 2017 were only 1.5 million units—far below the 6 million units it sold in 2016. This decline clearly reflected the deep problems within the company, which had a major impact on its television business. As LeTV’s market share dropped, some Internet TV brands such as Xiaomi and Hisense experienced rapid growth. In 2017, Xiaomi's TV shipments were expected to grow by over 90% year-on-year, showing that these brands did capture some of the market space that LeTV had lost.
However, the fastest growth in the first half of 2017 was actually achieved by Sharp, which seized market share through aggressive pricing after being acquired by Hon Hai. Sharp's market share in China reached 7.4% in the first half of the year, more than tripled from the same period the previous year. While price remained a key factor in winning customers, Sharp also benefited from its long-standing brand reputation in China. Hon Hai emphasized the use of imported panels in Sharp TVs, further enhancing consumer trust.
But by the third quarter of last year, the TV market shifted again. Traditional TV brands began to regain ground, and Sharp's shipments fell significantly. Despite a global TV market decline of 4%, traditional brands like Hisense saw strong growth. WitsView data showed that Hisense's shipments increased by 57.6% compared to the previous quarter, rising to fourth place in the global rankings. Meanwhile, Sharp's market share dropped from fourth to eighth, with a 16.7% decrease in shipments.
Other top TV brands, including Samsung, LG, and TCL, also recorded quarterly growth, with increases of 10.6%, 9.7%, and 31%, respectively. It's expected that these traditional brands will continue to see growth in the fourth quarter of 2017.
The rise of traditional TV brands has naturally limited the growth of Internet TV. This may be due to factors such as intense price competition and the negative impact of LeEco's troubles. Consumers tend to be more cautious when purchasing large appliances like TVs, preferring the reliability of traditional brands that offer better after-sales service. Concerns about the after-sales support of Internet TV brands have made users hesitant.
Another challenge for Internet TV companies is the growing distrust from the supply chain. Some companies reported that suppliers are now stricter with payments, even requiring upfront payments. This is particularly disadvantageous for light-asset Internet TV companies, increasing their operational costs. Previously, their advantage lay in fast product turnover, where orders were placed directly with OEMs and shipped to consumers without holding inventory. However, this model was disrupted when LeEco faced issues.
The development of the TV industry shows that "Internet +", while innovative, cannot solve all problems. After LeEco's difficulties, both the industry chain and Internet TV companies must re-evaluate their relationships. Meanwhile, traditional TV brands have regained market share thanks to their accumulated reputation and customer trust. Sharp remains an exception, relying on aggressive pricing to gain market share in the short term. However, inventory issues have limited its ability to expand further, causing stagnation and even a decline.
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