"If It Doesn't Work, Shut It Down"... Samsung Officially Halts Home Appliance and TV Sales in China (Comprehensive)

Briefing Held for Local Employees
Restructuring of Low-Profitability Businesses
'Selection and Concentration' on Mobile Devices and Semiconductors

Samsung Electronics has officially announced the suspension of sales of TVs and home appliances in China. Instead of continuing to compete in increasingly challenging markets against local firms, the company has adopted a “selection and concentration” strategy, focusing its resources on core areas such as mobile and semiconductors.

According to industry sources on May 7, Samsung Electronics held a briefing session for local employees of its Chinese subsidiary the previous afternoon and formally notified them of the suspension of sales of home appliances and TV products in China. The company subsequently communicated this decision to major local partners, thereby formalizing the business restructuring. This suspension of sales is expected to be accompanied by internal organizational restructuring and workforce adjustments in the local market.

This decision is seen as a last-resort measure in response to intensified cutthroat competition with local companies, combined with a slowdown in the overall home appliance market growth, which has made it difficult to maintain profitability. Samsung Electronics plans to discontinue its low-profit home appliance sales business, while continuing to strengthen its business competitiveness by maintaining high value-added businesses including mobile, semiconductors, and medical devices.

A Samsung Electronics model is presenting the 'Bespoke AI Family Hub' refrigerator at 'AWE 2025,' the largest home appliance exhibition in China held last year in Shanghai, China. Photo by Samsung Electronics via Yonhap News Agency

In particular, the company intends to accelerate its premium strategy in the mobile sector by leveraging the artificial intelligence (AI) features of its Galaxy lineup. Samsung Electronics plans to continuously introduce China-exclusive models and services, such as the W Series (Heart to the World), and expand collaborations with leading local AI companies in order to defend its market share.

Although sales operations will be discontinued, Samsung Electronics will continue to utilize China as a production and technology hub. The company will maintain its R&D activities for home appliances and TVs in China and continue normal operations at its Suzhou home appliance plant, as well as its semiconductor plants in Xi'an and Suzhou. After-sales service (AS) for customers who have already purchased products will also be maintained. A Samsung Electronics official stated, “We will do our utmost to ensure that Chinese consumers and partners are not adversely affected during the business restructuring process.”

Industry sources view this business restructuring in China as being closely related to the recent change in the leadership of the company’s TV business. Previously, Samsung Electronics appointed President Lee Wonjin, head of Global Marketing for the Device eXperience (DX) division, as the new head of the Visual Display (VD) business unit, signaling a significant personnel reshuffle. The appointment of President Lee, made outside of the regular personnel season, is seen as an indication that Samsung Electronics is acutely aware of the crisis facing its TV business.

This content was produced with the assistance of AI translation services.