The End of the TV Box? Tencent Takes Over as Xiaomi Sales Collapse

TV boxes were probably one of the most useful inventions in history. These devices, which became prominent especially in the early years when smart TVs first appeared, gained fame by making all television models, old or new, smarter. Also at the time, every brand had its own operating system, and only premium devices had the hardware to satisfy users. This increased the popularity of TV box producers like Xiaomi. However, it seems those days are behind us. TV box sales in China have dropped by 28%, and Xiaomi even has lost its leading position. Here are the details…

Smart TV box sales in China are declining. In the first half of 2023, sales dropped by 28.7%. Actually, this situation is not surprising at all. As we mentioned above, when smart TVs first became popular, the market was a “mess”. Manufacturers made smart TVs with poor hardware, bad interfaces, and empty app stores. This drove people to buy smart TV boxes with their TV’s. However, as we always say, technology is rapidly advancing.

The advancement in technology has led to significant improvements in smart TV technologies, which in turn has resulted in price reductions. Therefore, nowadays, most TVs on the market have features that are good enough for most people, apart from some brands that stand out for their affordability. Moreover, the widespread adoption of operating systems like WebOS and Android TV has eliminated issues related to user interfaces and app stores. As a result, even in the world’s largest markets like China, serious declines have begun.

RUNTO shared their new monthly report about the online sales of smart TV boxes in China. The report showed that in the first six months of 2023, online sales of these boxes reached 929,000 units. This is a drop of 28.7% from the same time last year. The total money made from these sales was 190 million yuan ($26,5 million), which is 31.7% less than last year. The average online price for each box was 209 yuan ($29). The report also showed that the top five brands in China for the first half of 2023 were:

Tencent is currently the top brand, and the company’s market share is 21.6%, which is a 5.7% increase from last year. In second place is Xiaomi, with a 16.5% share. This is 3.8% less than last year. Even so, Xiaomi owns almost 40% of the global market for products priced between 200 and 499 yuan. For example, I also use Xiaomi at home. Semine moved up to third place, capturing 13.0% of the market by selling at low prices. Tmall Magic Box fell to fourth place with 11.6% of the market. Dangbei also saw an increase in its market share to 9.9%, up 3.2% from last year.

The total sales across all channels will drop to below 3.5 million units. In just eight years, China’s smart box market has rapidly lost 10 million units from its 14 million units in 2016.

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