Lee Gyu-lee is a business writer at The Korea Times, focusing primarily on IT & telecommunications, the Ministry of Trade, Industry and Energy and KOTRA. Prior to this, she has covered a wide range of cultural news, from film, television and K-pop to lifestyle and fashion.
Samsung contemplates dropping TV, appliance biz in China
Yong Seok-woo, head of Visual Display Business at Samsung Electronics, poses in front of the company’s latest Micro RGB TV at a launch event in Gangnam District, Seoul, April 15. Yonhap
By Lee Gyu-lee
Samsung reviews exiting sales business in China, plans to close low-margin production lines globally
Samsung Electronics is weighing a potential exit from its TV and home appliance sales business in China, as intensifying competition and weakening profitability continue to cloud its outlook in one of the world’s largest consumer markets.
Citing sources familiar with the matter, Japanese news outlet Nikkei reported Monday that the company is expected to decide as early as the end of this month whether to halt sales of its TVs and appliances in China, with potential plans to liquidate inventory and wind down operations within the year.
The report said Samsung is considering maintaining its local manufacturing in China even if it exits sales, repositioning its production bases as export hubs serving nearby markets for home appliances such as refrigerators, washing machines and air conditioners.
The potential withdrawal comes as Chinese brands such as TCL and Hisense rapidly gain global market share, leveraging aggressive pricing and improving product quality. The combined share of Chinese brands in the global TV market reached 31.9 percent last year, surpassing Korea’s 30.4 percent, underscoring the shifting competitive landscape.
Amid eroding margins, the exit would reflect a strategic realignment, with Samsung trimming less profitable legacy businesses in China while doubling down on higher-margin segments, including semiconductors and smartphones, and premium markets for appliances, such as the United States.
However, Samsung said no final decision has been made.
“For now, the situation remains fluid and under review,” a company official said.
Still, internal concerns appear real. The company’s head of Visual Display Business, Yong Seok-woo, publicly acknowledged the challenges in China when speaking at its launch event earlier this month. “It is true that the China business is difficult,” he said. “We are looking at it in various ways and it is currently under review.”
A model demonstrates Samsung Electronics' Bespoke AI Family Hub refrigerator. Courtesy of Samsung Electronics
Signs of a pullback have been building. Earlier this month, Chinese tech news outlet IT Home reported Samsung was weighing a major restructuring of its appliance business operations in China to focus on advanced technology businesses.
During that strategic review, Samsung temporarily halted shipments of monitors and other display products, raising concerns the move could signal broader operational strain, given Samsung Display supplies OLED panels to Apple and major Chinese smartphone makers.
Samsung has reportedly explored various options for its appliance distribution network in the country. Last month, the company’s executives visited the Appliance & Electronics World Expo in Shanghai to assess market conditions. JD.com and Syfe Operations, which acquired LG Electronics' online operations, were said to have considered acquiring Samsung's appliance and display distribution network before backing out.
Meanwhile, the company is moving to overhaul its global appliance operations, announcing plans to close underperforming production lines, including for dishwashers and microwaves, and shift to outsourced manufacturing.
Its device appliances division has also reportedly outlined to employees plans to streamline operations, including shutting down its Malaysia plant, which has served as a key overseas production base since 1989.
The restructuring aims to refocus resources on the company’s premium appliance brand Bespoke and high-growth segments, including heating, ventilation and air conditioning systems, artificial intelligence home solution and appliance subscription services.