On May 7, Samsung Electronics announced it will stop selling a portion of its consumer electronics lineup in mainland China as competition in the domestic market has intensified. The decision affects certain TV and home appliance products, the company said, while mobile phone and memory chip sales are expected to continue in China.
In a statement, Samsung said it will "make every effort to minimize any impact on customers resulting from this decision, and is reviewing various support measures for business partners." The company made the announcement following earlier reports in South Korean media that suggested it would exit sales of TVs and home appliances in China.
Samsung's memory chip business has been benefiting from a spike in profitability tied to increased demand for AI computing capabilities. By contrast, its consumer electronics categories - notably televisions, home appliances and mobile devices - have been confronting mounting pressure from Chinese competitors both inside China and internationally.
Earlier in the week, Samsung disclosed a leadership change at its TV division, replacing the head of that business for the first time in more than two years. The company, which has long been a leader in the global TV market, was briefly overtaken last December by Chinese rival TCL. Counterpoint, a market researcher, reported that TCL has since entered a strategic partnership with Japan's Sony.
Samsung's TV and home appliance operations recorded combined losses of 200 billion won last year, a shortfall the company attributed to intense competition and the impact of U.S. tariffs. The firm, ranked as the world's No. 2 smartphone vendor, has also lost market share in China to Apple and local rivals.
Separately, Samsung faces emerging competition in the chip sector from smaller players including ChangXin Memory Technologies. Despite the withdrawal of selected consumer electronics items, Samsung is expected to continue distributing mobile phones and selling chips in the Chinese market. The company provided no further details on the timeline for the sales discontinuation or the specific product lines affected.
Exchange rate referenced by the company: $1 = 1,446.0400 won.
Summary of developments
- Samsung will discontinue sales of certain TVs and home appliances in mainland China amid intensified local competition.
- The company plans to keep selling mobile phones and chips in China and is assessing support measures for customers and partners.
- Samsung's memory chip division is reporting profit gains, while its TV and appliance units posted a 200 billion won loss last year.