The global TV business is moving toward a clearer division of labor. On February 23, Skyworth and Panasonic announced in Munich that Skyworth will handle production, sales, marketing, and channel expansion for Panasonic-branded TVs in Europe. Panasonic will retain responsibility for imaging R&D, product definition, and quality control. The companies also said they will jointly develop high-end OLED models.
The arrangement goes beyond contract manufacturing or a channel agreement. It reflects a market in which technology remains important, but manufacturing scale, supply chain management, and regional operating capability increasingly determine who can compete at the high end. Panasonic brings brand recognition and product expertise. Skyworth brings manufacturing scale and international operations. Together, they are testing a model that could become more common in premium TVs.
TV competition shifts toward specialization
For years, competition in TVs centered on two questions: who had the better display technology, and who could command a premium brand position. LCD gave way to OLED and mini LED, while companies added picture-quality algorithms and more advanced software. In that model, product performance and brand perception drove most of the value.
That is changing. Supply chain efficiency, channel management, regulatory compliance, after-sales service, and the ability to run operations across regions now carry more weight, especially in mature markets such as Europe. As products become more complex and the industrial chain lengthens, it is harder for a single company to manage every part of the business effectively.
The shift is visible in market share data. In China, domestic brands now dominate shipments. According to 36Kr Chuhai, TCL, Hisense, and Skyworth ranked first, second, and third by shipments in January. Including their sub-brands, they shipped a combined 2.39 million units, accounting for a 61.1% market share.
Globally, Omdia and other research firms point to a similar redistribution of scale. In the first quarter of 2025, Skyworth’s share of global TV sales revenue surpassed Sony’s, placing it among the world’s top five TV brands. Along with TCL and Hisense, it helped give Chinese brands three of the top five positions worldwide.
Europe remains one of the TV industry’s most important markets because premium technologies have higher penetration, and consumers tend to pay closer attention to picture quality, industrial design, and brand heritage. Brands such as Sony, LG, Samsung, and Panasonic have long been strong in the region, making Europe a useful test case for how high-end competition is evolving.
As OLED and mini LED products evolve, companies are not only funding R&D. They must also manage panel sourcing, algorithm tuning, system integration, certification, distribution, and service across multiple markets. These demands favor partnerships between companies with different strengths.
This is where the Skyworth-Panasonic deal fits. Panasonic retains imaging expertise, product-definition capability, and brand recognition in Europe. Skyworth contributes scale in manufacturing, supply chain integration, and cross-border operations. The partnership suggests that, in mature categories such as TVs, specialization may matter as much as vertical integration.
Skyworth’s overseas network underpins the deal
Skyworth’s international presence is the result of a long buildout, not a recent push. Founded in 1988, it began with products such as remote controls and decoders before moving into TV manufacturing. From there, it expanded overseas through OEM (original equipment manufacturer) and ODM (original design manufacturer) work, then gradually developed its own brands and local operations.
That strategy accelerated in the 2010s. Skyworth pushed its TV brand internationally, built sales networks in Southeast Asia, and established overseas corporate structures. It later used acquisitions and localized operations to deepen its presence. In 2014, it acquired South African appliance brand Sinotec, gaining faster access to the African market. In the mid-2010s, it also acquired Metz, Strong Group, and a Toshiba factory in Indonesia, expanding its footprint across several regions.
Germany’s Metz was particularly important in Europe. Through Metz’s local brand foundation and R&D capabilities, Skyworth built a multi-brand structure and used lines such as Metz Classic and Metz Blue to target different market segments. This gave it practical experience in combining local brands with Chinese supply chain capabilities.
Skyworth’s overseas strategy also expanded beyond TVs. As smart TVs and the artificial intelligence-of-things (AIoT) ecosystem developed, the company moved from being primarily a hardware manufacturer to a broader smart device and systems provider. It deepened ties with companies including Google, Netflix, and Amazon in software, content, and smart home connectivity.
At the same time, it expanded local R&D and operations in markets including Europe and Southeast Asia. Over time, Skyworth built a cross-regional system covering R&D, production, sales, and service. E-commerce became another component. In Southeast Asia, it used both marketplace-driven and content-led sales strategies. In Europe, it emphasized QLED, mini LED, and other mid- to high-end products through targeted positioning. As the business matured, the model extended to markets including Japan, Australia, South Africa, North America, and India.
Taken together, these efforts gave Skyworth something Panasonic lacks at the same scale: an operating platform spanning manufacturing, distribution, e-commerce, and local execution.
For Panasonic, shifting more of the commercial and operational workload to Skyworth could help preserve its position in premium TVs without bearing the full cost of end-to-end operations. For Skyworth, the deal indicates that its overseas expansion has progressed beyond product exports into brand partnerships.
The agreement is not an isolated case. In January, Sony and TCL said they planned to form a joint venture that would assume Sony’s home entertainment business, combining Sony’s brand and picture technologies with TCL’s manufacturing scale and supply chain capabilities. Earlier, in 2017, Hisense acquired a 95% stake in Toshiba Visual Solutions, taking over production, R&D, and sales for Toshiba’s TV business.
These examples, alongside the Panasonic-Skyworth partnership, point to the same trend: established brands are pairing product heritage and brand equity with the manufacturing and operational scale of partners, many of them from China.
Chinese TV brands move from competitors to partners
Chinese TV manufacturers are no longer competing primarily on price. As global demand slows and the cost of technological upgrades rises, collaboration is becoming a more practical model. Companies with strong brands and product legacies can focus on product definition and quality, while those with scale manage manufacturing, distribution, and regional execution.
The Skyworth-Panasonic partnership reflects that division. Panasonic’s established channels, brand recognition, and after-sales network in Europe and the US provide Skyworth with deeper access to mature markets. Skyworth’s supply chain, manufacturing scale, and global operating reach offer Panasonic a way to remain competitive in the premium segment.
As Chinese brands secure positions among the global top five and expand overseas revenue, their role is shifting. They are no longer only exporters of finished products. Increasingly, they act as operating partners behind international brands and, in some cases, help shape how those brands compete.
The Skyworth-Panasonic agreement matters because it shows how the premium TV market is reorganizing around specialization, shared costs, and cross-border cooperation. And for China’s TV makers, it marks a new phase of globalization, one defined less by price, and more by operational leverage.