Is the TCL household appliance market going down?
The TCL (NYSE: TCL) household appliance industry is going through a major change as the company looks to focus on the IoT market.
The company’s earnings report showed an 18% drop in net sales during the quarter, the second straight quarter of declines.
The industry is in a state of flux.
TCL announced a $50 million investment in iRobot, and has been making announcements on its IoT strategy.
But investors should not expect the IoT sector to continue to dominate.
A recent report by IDC showed that only 3% of household appliances in the US are in the IoT space, and only 13% of TCL’s market share is in the space.
Tcl is also moving to more of a cloud-based solution.
The IoT space is a great opportunity for TCL to grow its consumer market share, but it will take more than just cloud-connected appliances to be competitive in the segment.
This will require a shift in consumer behavior and a shift toward IoT-friendly devices and services.