Tomasz Wadowski
Samsung hasn't had an easy time lately. Televisions, once the pride of the company, are now dragging the results down, and competition from China is only adding fuel to the fire. The Samsung Electronics' Visual Display division – the one responsible for the entire TV segment – has just declared a state of emergency. And not in a figurative sense, but literally: “emergency management mode.”
Warning Signal from Korea
On May 12, it was internally announced that it was time to stop pretending everything was fine. Samsung announced drastic cuts – fewer delegations, an end to "luxury" hotels and overtime bonuses. Meetings? Only those that are essential. All in an effort to save a division that was recently the company's flagship, but is now teetering on the edge.
TCL, Hisense, Xiaomi – everyone is going full throttle and not looking back. With cheaper production and increasingly better screens, they're starting to choke Samsung's oxygen supply. And since the market is not growing, but shrinking – inflation, recession, uncertainty – the Koreans are instituting internal discipline. It's no longer just about cutting costs. It’s an attempt to get the entire division back on its feet before it’s too late.
Stop the FOMO: “Samsung in panic, but this might be the perfect time to buy – and particularly specific models”
In their latest video Stop the FOMO doesn't mince words – Samsung is under immense pressure from Chinese competitors like TCL and Hisense, who are flooding the market with increasingly better and cheaper TVs. The decision to introduce a rescue mode is, according to them, a signal that margins are shrinking, and the Koreans feel the competition breathing down their necks. It can be observed that the offensive from Chinese brands has intensified. But for buyers, this is... good news. According to Stop the FOMO, if anyone is considering buying a Samsung TV, now is the best time, especially for this year's OLEDs – specifically models S90D and S95D in sizes 55", 65" and 77". These models offer the best price-performance ratio and picture quality. In other words – you'll get the most out of these panels that Samsung has to offer today.
We have also created a compilation of Samsung TV models that are definitely worth considering when purchasing a new screen – check out our ranking of the best Samsung TVs!
Even bosses aren’t getting a free ride
In the Network Division, there's no longer any talk of flying business class. Now, that same approach is coming to the TV department. Managers? Economy class, the same hotel as the regular staff. Zero perks. On top of that, overtime is limited and there’s more oversight. Samsung isn’t beating around the bush – everyone needs to feel that the situation is serious.
As one of Samsung's officials puts it: “We’re already in cost-saving mode, we are simply extending these actions across the entire VD team.” In other words – there won’t be any new ideas for cuts. Everything that previously applied only to management will now fall on the rest of the team as well.
Source: businesskorea
