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Samsung Electronics is anticipated to reorganize its operations in China, according to industry insiders. The company is expected to refine its strategy, possibly concentrating exclusively on its mobile phone and storage divisions while reorienting its focus toward the semiconductor sector.
In the latter half of the year, Samsung’s white goods division in China is likely to transition from a direct sales approach to an agency-based model, as noted by Chen Hui, a general manager at the home appliance market research firm AVC Revo. The company’s black goods segment may also adopt an agency model.
Sources suggest that distributors of Samsung Display in China have already ceased shipments.
In 2014 and 2015, Samsung sold approximately USD 3 billion worth of color televisions, USD 1 billion of home appliances, and USD 20 billion of mobile phones within China. For this year, its sales targets for color TVs and home appliances are estimated to be around 5 percent and 1 percent of their peak figures, respectively.
The company’s market share in China’s home appliance sector has been decreasing over recent years, driven by the rising prominence of Chinese brands and their expansion into the high-end market. Recently, Samsung missed the 2026 Appliance and Electronics World Expo for the first time in several years.
As of April 5, Samsung’s market shares in China stood at 3.6 percent for TVs, 0.4 percent for refrigerators, and 0.4 percent for washing machines, ranking fifth, 14th, and 15th in their respective markets, according to AVC data.
A home appliance retailer in East China mentioned that Samsung’s home appliance business there is shrinking, adding they mainly cooperate on TVs, but with limited sales. Another retailer from Northwest China revealed a partnership for central air conditioners but said their collaboration on televisions ended two years ago.
“The strategic realignment by Samsung in China reflects both the global competitive environment and the company’s internal strategic decisions,” stated Dong Min, secretary-general of the China Video Industry Association. This shift signals a continued retreat of foreign brands from China’s consumer electronics field and highlights the growth of China’s display and electronics industries.
Given Samsung’s extensive presence in China’s industry, it is believed that evaluating its strategic shifts solely based on certain product sales might be an oversimplification, according to a senior industry observer.
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