In a surprising turn of events, two prominent Chinese electronics manufacturers, OnePlus and Realme, have abruptly ceased both television production and sales operations in the Indian market. This decision comes amidst escalating pressure on Chinese companies and in a sector that had shown potential for substantial growth.
Despite their thriving smartphone businesses, OnePlus and Realme have decided to exit the highly competitive television category, industry sources confirmed. This unexpected move has raised questions, especially as compatriot Xiaomi continues to dominate and lead the market in this particular segment.
The withdrawal from the television business marks a significant shift in strategy for both companies, given their prior investments in sales channels and brand recognition within the TV market. This product category has witnessed significant growth in recent years, driven by increased internet accessibility and cost-effective data rates. Furthermore, the surge in popularity of streaming platforms such as Netflix, Amazon Prime, and Disney Hotstar has led to a surge in demand for smart TVs.
Notably, both OnePlus and Realme declined to respond to inquiries regarding this strategic shift, maintaining a silence on the matter.
The television market in India is primarily populated by established players such as LG, Samsung, Sony, and Panasonic, alongside newer entrants from China like Xiaomi and TCL. Additionally, domestic brands like Vu and Thomson, operating under brand licensing agreements, have been strengthening their presence.
Interestingly, the decision by OnePlus and Realme to withdraw from the television market comes at a time when TV sales are experiencing significant growth. Factors contributing to this growth include the ongoing cricket World Cup, with India being a favored team, and the ongoing festive season, which typically sees an upswing in electronics sales.
According to the International Data Corporation (IDC) Quarterly Smart Home Devices Tracker, India witnessed the shipment of 4.5 million televisions in the first half of 2023, marking an 8% year-over-year increase. The surge was attributed to frequent online sales events, a series of new product launches, and the clearance of older channel inventory ahead of the festive season. Online sales accounted for 25% of the market in H1 2023, reflecting a 39% year-over-year growth, driven by online sales festivals, as per the IDC.
