The battle for supremacy in the XXL TV market: 98” vs 100”

The TV industry is witnessing a transformative era as XXL TVs redefine the market landscape, driven by shifting consumer preferences and competitive innovations. In this blog, Omdia analyst Ken Park delves into the surging demand for 98-inch and 100-inch models, exploring the aggressive pricing strategies, supply chain dynamics, and technological advancements fueling this trend.

The two most significant shopping events in 2H24 for the TV market were China’s Singles’ Day (November 11) and Black Friday in the US. These events not only marked the conclusion of annual market demand but also offered valuable insights into sales trends for the upcoming year. Although final sales data is still pending, one trend has become unmistakably clear—XXL TVs are experiencing unprecedented demand, with their popularity soaring during both events.

The growing interest in XXL TVs reflects a global shift in consumer preferences

Buyers are increasingly prioritizing larger screen sizes and the convenience of integrated TV platforms and over traditional considerations like high-end hardware specifications for picture quality or display technology differences. Additionally, a sharp decline in prices has been the key driver of the surge in XXL TV sales.

TCL was the first brand to establish the 98-inch TV segment as a cost-effective option, making a significant impact in both the US and Chinese markets with a ground-breaking promotional price of $1,999 earlier this year. However, this wasn’t a fleeting phenomenon. The XXL TV market gained even greater momentum when Hisense introduced a 100-inch model at the same price point as TCL’s 98-inch TV. This sparked a competitive “98-inch vs. 100-inch” race between the two brands, driving global growth in the XXL TV segment (see Figure 1).

Samsung and LG have entered the competitive low-cost XXL TV market. This year, even Walmart’s Onn brand joined the fray this year. During Amazon Prime Day 2024, Walmart launched its first 98-inch model at an eye-catching $1,498—undercutting Chinese brands. In response, TCL lowered its 98-inch TV price to $1,599 for Black Friday, while Hisense matched this price for its 100-inch model.

In China, the competition was even fiercer during Singles’ Day, with Hisense offering its 100-inch model at an astonishing ¥5,949 (approximately $819). After deducting China’s 13% value-added tax (VAT), the effective price was just $713—nearly 50% lower than US prices. This aggressive pricing is driven partially by government subsidies of up to 20%, through the “swap old for new” program designed to boost the domestic economy. Even without subsidies, 98-inch and 100-inch TVs in China are now competing at sub-$1,000 when viewed from a US pricing perspective.

Is the price war between TCL’s 98-inch TVs and Hisense’s 100-inch models merely a reckless game of chicken for volume dominance? A deeper analysis reveals that this competition is more than just a race for market share—it’s a strategic contest on multiple fronts that could redefine the TV and panel industries.

Panel standardization and manufacturing efficiency

At the heart of the XXL TV race is a battle for panel size standardization, critical for the survival of panel manufacturers. China Star, which holds a 92% share of the 98-inch panel market, produces two 98-inch panels per mother glass using its Gen 8.5 fabs. Similarly, BOE and HKC dominate the 100-inch panel market, with over 90% combined supply, producing two 100-inch panels from their Gen 8.6 fabs.

From a cost-efficiency perspective, both generations yield the same number of panels per mother glass, making XXL panels more appealing than small or medium-sized ones. Larger panels improve sales efficiency, streamline inventory management and in a sluggish TV market, allow manufacturers to control smaller panel supplies, stabilizing prices. Consequently, the race for XXL TV market dominance doubles as a contest for supply chain hegemony, pitting the 100-inch camp of HKC and BOE against China Star’s 98-inch stronghold.

Vertical integration and strategic alliances

China Star benefits from vertical integration with TCL, creating a robust captive supply chain. As TCL’s market share grows, so does China Star’s influences. With TCL’s acquisition of LG Display’s Guangzhou LCD fab, China Star is poised to surpass BOE in TV panel supply capacity. This intensifies pressure on BOE to strengthen its partnership with Hisense to counterbalance China Star’s expanding footprint. A strong alliance with Hisense is vital for BOE to resist China Star’s expansion.

The role of South Korean giants

South Korean companies such as Samsung and LG, are closely monitoring the rise of Chinese competitors. With Chinese brands controlling the ultra-large panel supply chain, South Korean firms must craft strategic responses. For Chinese brands, achieving global sales volume is critical—not just to maintain bargaining power with suppliers and distributors but also to secure margins and enhance brand awareness through aggressive marketing.

Breaking the premium paradigm

XXL TVs are revolutionizing the traditional premium TV market by delivering exceptional value at accessible prices. This shift maximizes consumer appeal, lowers the cost barrier and reshapes consumer expectations reducing the relevance of premium models. As a result, global brands are facing eroded profitability, while TCL and Hisense are positioning themselves as dominant global players.

Looking ahead

Reflecting the growing market demand, Samsung and LG are expected to debut their own 100-inch models at CES 2025 escalating competition as Chinese brands, global giants, and private-label players push the XXL TV trend further into the mainstream. CES 2025 will showcase not just technological innovation but also the intensifying battle for dominance in the XXL TV market, marking the next chapter in this industry’s transformative evolution.