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Samsung Electronics is planning to cease sales of all home appliances across mainland China due to the changing market conditions. The product lines affected include TVs, monitors, large commercial displays, air conditioners, refrigerators, washing machines, dryers, washer-dryer combos, fabric care appliances, audio systems, projectors, vacuum cleaners, and air purifiers. The company clarified that its smartphone division will remain unaffected by this decision.
The company’s home appliance segment in China experienced significant growth around 2014 and 2015, with annual sales reaching approximately $3 billion for TVs, $1 billion for other appliances, and over $20 billion in mobile phones.
The decision to exit the home appliance market in China is driven by both global industry competition and internal strategic considerations, according to industry analysts. In recent years, local Chinese brands such as Hisense, TCL Electronics, and Xiaomi have expanded rapidly, posing substantial challenges to Samsung’s market share. The company has also been impacted by its withdrawal from liquid crystal display (LCD) panel manufacturing, which increased reliance on Chinese panel suppliers and further diminished its competitive edge in the TV segment.
Market data from AVC shows that as of April 5, Samsung’s share in the offline TV, refrigerator, and washing machine markets in China was only 3.6%, 0.4%, and 0.4%, respectively. The company ranks fifth in TVs, 14th in refrigerators, and 15th in washing machines nationwide.
Despite exiting the general home appliance market, Samsung continues to invest heavily in its enterprise operations in China, such as storage solutions, electronic components, and medical devices. At the end of last year, Samsung operated 16 manufacturing facilities and 13 R&D centers across Chinese cities including Beijing, Shanghai, Tianjin, Suzhou, Shenzhen, and Xi’an. Total investments in the country approached $56.7 billion, with about 90% allocated to high-tech industries.
Additionally, Samsung is expanding its semiconductor business in China. On March 27, the company hosted the China Flash Market Summit, also known as MemoryS, in Shenzhen. Following this, on April 7, Samsung announced its latest high-bandwidth memory products through its official Weibo channel.
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