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Samsung Exits China Home Appliance and TV Market Amid Losses

Samsung Electronics has decided to withdraw its home appliance and TV sales business in China due to increased costs and competition from local firms. The company's mobile, semiconductor, and medical equipment operations will continue in the country. Samsung's sales unit in China saw net profit fall sharply to 168 billion won last year. The firm also announced a leadership reshuffle, appointing Lee Won-jin as the new head of its visual display business.

Key Points: Samsung Withdraws Home Appliance, TV Biz in China

  • Samsung ends home appliance and TV sales in China
  • Mobile and semiconductor businesses remain
  • Net profit in China dropped sharply to $116M
  • Leadership reshuffle with Lee Won-jin as new TV head
2 min read

Samsung withdraws home appliance, TV sales biz in China

Samsung Electronics withdraws home appliance and TV sales in China due to rising costs and competition, while mobile and semiconductor businesses remain.

"Drawing on his track record of business success and market insight, he is expected to spearhead business turnarounds and identify new growth areas. - Samsung Electronics"

Seoul, May 7

Samsung Electronics has decided to withdraw its home appliance and TV sales business in China amid its struggle to shore up its presence in one of the world's most important markets, industry sources said.

But its mobile, semiconductor and medical equipment businesses will remain in place in the neighbouring country, the sources said, reports Yonhap news agency.

Samsung has recently notified its vendors in China of its decision to end its home appliance and TV sales business there.

Samsung's decision to pull out from China came as the Korean tech giant has been facing increased costs amid global uncertainties and losing ground against Chinese firms.

Samsung's sales unit in China logged a net profit 168 billion won (US$116 million) last year, sharply down from the previous year's 300 billion won in net profit.

Earlier, Samsung Electronics said it was reviewing a business reorganisation in the face of increased competition in the home appliance sector and tariff risks.

Earlier this week, Samsung, the world's No. 1 TV maker, replaced its head of TV to tackle increasing challenges at home and abroad.

Meanwhile, Samsung has announced a leadership reshuffle, naming the new head of its visual display business to tackle current challenges.

Under the reshuffle, Lee Won-jin, who has been serving as the head of the global marketing office, will become the new official head of the business unit.

"Drawing on his track record of business success and market insight, he is expected to spearhead business turnarounds and identify new growth areas, thereby further strengthening the competitiveness of the visual display business," the company said in a release.

Lee will take over the position of Yong Seok-woo, who has been newly appointed as the adviser to the head of the device experience division.

The management shake-up comes amid intense competition from Chinese manufacturers, who have been challenging South Korea's long-standing leadership in the display market.

Lee is widely considered to have established the foundation of Samsung Electronics' service business for its TV and mobile unit after joining the company from Google Korea in 2014.

He also contributed to strengthening the global competitiveness of Samsung Electronics as the head of global marketing, the company said.

- IANS

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Reader Comments

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Priya S
Makes sense from a business perspective. When you can't compete, better to exit than keep bleeding. Samsung's home appliances have always been a bit overpriced compared to Chinese alternatives. In India too, many prefer LG, Whirlpool, or even local brands over Samsung for fridges and ACs. TVs they still have some edge but that's also reducing.
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Arjun K
Samsung has been losing the plot in China for years. They were arrogant thinking brand name alone would sell. Meanwhile Chinese companies kept innovating and offering better value. The leadership change is good but I doubt one person can fix everything. India should take note - we need to build our own strong manufacturing and not just be a market for others.
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Sarah B
As someone who works in electronics industry, this is not surprising. Global uncertainties and tariff risks are making companies rethink strategies. China market is huge but very competitive now. Samsung needs to focus on high-end segment where they still have advantage. Their QLED TVs are excellent, but mass market is lost to TCL and others.
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Nisha Z
Sad to see any company struggling, but this is business reality. Samsung should have invested more in understanding Chinese consumers. Their UI and smart features never matched what local brands offered. Good that they're keeping mobile and semiconductor - those are their strong areas. Hope they learn from this for other markets like India.
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Vikram M
Profit fell from 300 billion won to 168 billion - that's almost half! Somebody had to take responsibility. The new CEO from Google background might bring fresh thinking. But honestly, in today's world you need constant innovation. Samsung's refrigerator designs haven't changed

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