In a kind of hard reset for its TV plans, LG is in talks with Hisense, according to sources in South Korea. Should this be put to bed, it would be the end of an era for LG, and a case study in how the global market is being redefined by razor-thin margins and the need to keep prices down.
Why this matters for the TV market
Handing over to Hisense would put some muscle behind a change we are already seeing: well-established names getting outflanked by up-and-coming Chinese firms. You only have to look at Sony ceding control of Bravia to TCL to see the kind of consolidation that comes when you have to compete on cost.
The message to the buyer is plain. With Chinese makers putting Mini LED tech in sets at hard-to-beat prices, the rest of the field has to go for volume if they want to stay in the game. An LG pullback from the factory floor would be a clear nod to those who can play the scale and software card.
What is reportedly on the table
Korea’s EBN has it that some of LG’s top brass were in Beijing to sit down with Hisense and put some ideas on the table for a possible overhaul of the TV side of the business, a sale included. Don’t expect either side to put pen to paper just yet; there’s no word on a deal or a schedule.
When asked about the chatter, LG was noncommittal, saying it’s hard to make any head of a claim without something official. But if it does go through, it’s goodbye to nearly 60 years of LG as a TV maker.
Here is where things stand:
– EBN is reporting on the Beijing meetings between the two
– A sale is one of the ways to restructure
– Nothing has been put in writing by either party
– It would be the final chapter for LG in TV manufacturing
How Chinese rivals changed the game
You can put it to the numbers. Omdia says last year saw TCL and Hisense take 14 and 12.5 per cent of the world’s TV shipments, while LG has been treading water in the low to mid-10s as some of that volume has gone to the other side.
And if you add in Xiaomi, the trio of them have put Samsung and LG in the rearview since 2024. It’s a turning point where having a good supply line and rolling out features fast is more of an asset than a storied brand name.
LG’s profitability squeeze and the margin math
At the end of the day, it’s about the bottom line. The report makes it clear that TV is a tough business with margins that don’t go much higher than 1 or 2 per cent. Even the push for high-end OLEDs hasn’t been enough to make up for the costs of making and moving the product.
First quarter figures for the Media and Entertainment unit show 5.16 trillion won in sales and 371.8 billion in operating profit. In the meantime, the company has been looking for efficiencies, from trimming staff to sending more work out to be made elsewhere.
To put it in perspective:
– We’re talking 1% to 2% in TV margins
– Going premium hasn’t been a shield for profits
– They are already cutting costs and outsourcing
A long legacy, a familiar pivot
This goes back to 1966 and GoldStar, the forerunner to LG, putting out the VD-191, the first B&W set in Korea. It’s been a part of living rooms all over, so walking away is more than just a line on a ledger.
They’ve done it before. After the smartphone side of the house bled money for a while, they put it to rest in 2021 and moved on to EV parts and the like. Word is they may be thinking along the same lines for TVs, with an eye on a future built more on software.
Hisense would be in a stronger position to haggle over components and channels if they make the buy. If not, the very fact of a reorg is a sign that LG wants to be in the higher-margin, platform-driven side of things, not in the factory.
For the moment, we’ll let the talk be. There’s no confirmation, but whatever is decided will have ripples in the global TV scene. In a business as hard-nosed as this, the next word from Seoul or Qingdao could write the rules for the next few years.
