Samsung exits China home appliance and TV sales business

Samsung Electronics is pulling out of China's home appliance and television sales market after a steep drop in profitability and mounting pressure from local Chinese rivals, The Korea Times reported Wednesday.

The move marks a major strategic retreat for Samsung, the world's No. 1 TV maker, from the world's largest consumer electronics market — and signals how aggressively Chinese domestic brands have displaced foreign competitors on their home turf.

Samsung recently notified its vendors in China of the decision to cease home appliance and TV sales operations, according to The Korea Times, which cited Yonhap.

The company's China sales unit saw net profit fall sharply from roughly 300 billion won the prior year to 168 billion won — approximately $116 million — last year, the report said. Rising costs linked to global economic uncertainty and fierce competition from Chinese manufacturers were cited as key factors behind the slide.

Samsung's semiconductor, mobile device, and medical equipment businesses in China are not affected by the withdrawal and will continue to operate, The Korea Times reported.

Before the final withdrawal decision, Samsung replaced the head of its TV division in an effort to address the division's competitive challenges, according to the report. The leadership change underscored the pressure the company was facing in the segment.

Chinese appliance and TV brands have steadily gained ground on price and technology in their home market over the past decade, squeezing foreign rivals. Tariff risks tied to broader global trade tensions compounded the margin pressure on Samsung's consumer electronics operations in China.

Samsung's semiconductor, mobile, and medical equipment businesses in China remain active following the withdrawal decision. The Korea Times report, citing Yonhap, did not specify a timeline for completing the exit from home appliance and TV sales.