Samsung to Withdraw from Home Appliance Sales in China

According to interviews with sources cited by the Nikkei, South Korean electronics giant Samsung Electronics plans to withdraw from the sale of home appliances and televisions in China by the end of 2026. The business has suffered from persistently low profits due to the rise of Chinese companies. The company will shift its focus to the strong-performing US market.

Samsung Electronics is expected to make a final decision on ceasing home appliance and television sales in China as early as the end of April, and will begin explaining the situation to local employees and partners. It will gradually dispose of its domestic inventory in China, completely ending sales by the end of 2026.

The company will shift its operational resources to the sales of semiconductors and smartphones. Samsung will maintain its production system for products such as refrigerators and washing machines manufactured in China. While ceasing shipments to the Chinese domestic market, it will become a supply base for overseas markets.

Samsung told the Nikkei, “Nothing has been decided yet.”

The biggest reason for this withdrawal is declining price competitiveness. Chinese manufacturers are achieving lower prices while continuously improving quality, and their presence in the global market is steadily increasing. Chinese consumers are increasingly valuing domestic brands, and foreign companies are facing a challenging market environment. Data from the Chinese research firm Lotoo Technology shows that by 2025, China’s domestic TV shipments will reach 32.89 million units, with overseas brands accounting for less than 1 million units.

Until the late 2010s, Samsung achieved some sales success in China. However, the 2016 decision by South Korea to deploy the US Terminal High Altitude Area Defense (THAAD) system triggered a boycott of South Korean products in China, leading to a deterioration of the sales environment.

On the other hand, Chinese manufacturers are gaining momentum. According to Euromonitor International, a British research firm, by 2025, Chinese companies such as Hisense and TCL will account for 31.9% of global TV sales, surpassing the combined 30.4% of South Korean companies (Samsung and LG).

Ten years ago, in 2016, South Korean companies held a 35% market share, while Chinese companies held 16%. Chinese companies have gradually caught up, and their market share (statistics by country and region) is projected to become the world’s largest in 2024.

Looking at the breakdown of Samsung’s consolidated sales for fiscal year 2025 (ending December 2025), home appliances and televisions accounted for 17%, ranking third after semiconductors (39%) and smartphones (same). However, in terms of operating profit and loss for fiscal year 2025, the home appliances and television business declined to a loss of 200 billion won (compared to a profit of 1.7 trillion won in the previous fiscal year). This is the company’s first loss since its inception.

Samsung Electronics hopes to stage a comeback through high-end televisions that differentiate them from Chinese companies and sales targeting the strong US market. Anticipating increased replacement demand due to the upcoming FIFA World Cup starting in June, the company launched a new AI TV product in April. This TV supports voice interaction and displays necessary information during viewing.

Japanese companies are also restructuring around televisions. In March of this year, Sony Group announced the transfer of a 51% stake in its television business and its Malaysian factory to China’s TCL.

(Nikkei)