LG may exit TV business after 60 years, considering sale to Hisense

At a glance:

• LG is reportedly in talks to sell its TV business to Chinese rival Hisense amid weak profits and intense competition.
• The company has faced mounting pressure as TCL and Hisense captured 14% and 12.5% of the global TV market respectively.
• This potential exit follows LG's 2021 shutdown of its smartphone division, as it shifts focus to EVs, robotics and software platforms.

LG Electronics is reportedly exploring a major restructuring of its TV business, potentially selling it to Chinese electronics giant Hisense. The move comes as the South Korean tech giant faces persistent profitability challenges and escalating competition from low-cost, high-quality Chinese brands.

According to a report by Korean outlet EBN, LG executives recently traveled to Beijing to discuss the future of the TV division with senior Hisense officials. While neither company has confirmed any deal, the mere possibility of LG stepping away from TVs after nearly six decades marks a significant shift in the consumer electronics landscape.

LG's television journey began in 1966 when its predecessor, GoldStar, launched Korea's first black-and-white TV. Over the following decades, LG became a household name globally, competing fiercely with Samsung and Sony in the premium TV segment. However, the landscape has dramatically shifted in recent years.

Chinese manufacturers, particularly TCL and Hisense, have gained substantial ground through aggressive pricing and improved picture quality. Market research firm Omdia reports that TCL and Hisense now hold global TV shipment shares of 14% and 12.5% respectively, putting significant pressure on established brands like LG and Samsung.

This isn't LG's first major retreat from a consumer market. In 2021, the company shuttered its smartphone business after years of losses, ending beloved lines such as the LG Wing and V-series. That decision aligned with a broader strategy to concentrate resources on more profitable sectors, including electric vehicle components, smart home technologies, and robotics.

The potential exit from TVs suggests LG may double down on software and platform development. EBN reports that LG could pivot to focus on its webOS platform, leveraging it for monitors, automotive systems, and smart displays rather than manufacturing TVs directly.

Sony's recent divestiture of a majority stake in its TV business to TCL further underscores the challenges facing legacy brands. These moves signal a broader industry consolidation, where scale and cost efficiency increasingly determine success in the commoditized TV market.

Industry analysts suggest that LG's potential exit could accelerate as other Chinese brands continue to innovate and undercut traditional manufacturers on price without compromising on features. The company now faces a critical decision: invest heavily to compete or retreat to areas where it can maintain higher margins.

For consumers, this shift could mean fewer premium TV options from LG in the future, while potentially opening doors for more integration of webOS across different device categories. The company's ability to monetize its software platform may prove more lucrative than hardware sales in the long term.

As the situation develops, all eyes are on whether LG will formalize its TV strategy or continue negotiations with Hisense. The outcome could reshape the global TV industry and serve as a bellwether for other legacy electronics companies navigating an increasingly competitive landscape.

What to watch

• Any official statements from LG or Hisense regarding the reported discussions.
• Market reaction and potential follow-up moves by Samsung and Sony.
• LG's strategic roadmap for webOS and automotive technology investments.