Global TV shipments in the first quarter of 2026 saw a healthy 6% increase compared to the previous year, a surprising development given the market conditions. This growth wasn't accidental; it was driven by a powerful combination of factors that overcame significant cost pressures.
The primary driver was the 2026 FIFA World Cup. Retailers worldwide began building up their inventory in early 2026, anticipating a surge in demand from consumers looking to upgrade their TVs for the major sporting event. This strategic stocking, combined with major promotional events like Amazon's Prime Day scheduled during the tournament, created a strong pull for TV shipments.
However, this happened amidst a sharp rise in component costs. First, prices for DRAM and NAND memory chips, essential TV components, skyrocketed by over 170% from their late-2025 levels. Normally, such a cost shock would force manufacturers to raise TV prices. So, why did prices remain low and promotional?
The answer lies in a new business model: connected TV (CTV) advertising. Companies like Roku, Samsung, and LG are now generating significant profits from selling ads on their smart TV platforms. This advertising revenue is so substantial that it can subsidize the cost of the hardware itself. In essence, they can afford to sell TVs at a lower margin—or even a loss—because they make the money back through ads over the TV's lifespan. This allowed them to absorb the memory cost inflation without passing it on to consumers.
Second, a favorable currency exchange rate helped. The US dollar strengthened significantly against the Korean won. This was a boon for South Korean giants like Samsung and LG, as it increased their earnings in their local currency, giving them more financial leeway to keep their US dollar prices competitive.
Finally, the growth was geographically concentrated. With demand in China remaining weak, Chinese manufacturers redirected their shipments to faster-growing markets like Latin America and Asia & Oceania, boosting the overall global figures. It was this mix of a major global event, a resilient advertising business model, and favorable economic conditions that allowed the TV market to thrive despite the headwinds.
- Glossary
- Connected TV (CTV): A television set that is connected to the internet and can stream content beyond what is available from a traditional cable provider. This includes smart TVs and TVs connected via devices like Roku or Apple TV.
- DRAM/NAND: Types of memory chips that are critical components in modern electronics, including TVs. DRAM is used for active processing, while NAND is used for storage.
- Bill of Materials (BOM): A list of all the raw materials, sub-assemblies, and parts needed to manufacture a product. A rise in BOM costs means it's more expensive to build the product.