Samsung Ends Home Appliance Sales in China Amid AI Business Focus
- tech360.tv
- 1 hour ago
- 2 min read
South Korean technology firm Samsung Electronics has ceased sales of all home appliance products in mainland China. This strategic move follows dwindling market share amid intense competition from domestic rivals and an accelerating pivot towards more profitable semiconductor operations.
Samsung's home appliance portfolio in China included televisions, monitors, air conditioners, refrigerators, washing machines, dryers, vacuum cleaners, and air purifiers. The company stated on its official website that after-sales services would continue as normal, attributing the decision to rapidly changing market conditions.
Smartphone products will remain available for sale in China. However, the world's leading handset maker faces significant challenges competing with local rivals and Apple in the market, with its market share falling from nearly 20% in the early 2010s to less than 1% today, according to IDC data.
Samsung's withdrawal from the Chinese home appliance market aligns with a broader strategic shift towards its lucrative semiconductor business. The company has faced consistent pressure from lower-cost and increasingly sophisticated Chinese brands.
Earnings have soared recently amid the global artificial intelligence boom, which drives demand for memory products. Samsung reported revenues of 133.87 trillion won (US$92.3 billion) and an operating profit of 57.23 trillion won for the first quarter of 2026, exceeding its earnings for the whole of last year.
The firm’s share price in Seoul has increased 107% this year, with Samsung’s market capitalisation reaching a record high of 1,710.8 trillion won. Its memory business recorded quarterly sales of 74.8 trillion won, a 292% increase year on year.
This growth was driven by surging demand for high-performance memory products used in AI infrastructure. Continued increases in average selling prices also contributed, due to tight supply.
Samsung’s Device Solutions division, which encompasses its semiconductor operations including memory and foundry businesses, accounted for 61% of the company’s total revenue in the quarter. In contrast, its television and home appliance business generated 14.3 trillion won in revenue, representing approximately 11% of the group’s total sales.
Samsung Electronics has stopped selling home appliance products in mainland China.
The decision is due to intense local competition and a strategic pivot towards its semiconductor business.
Smartphone sales will continue in China despite a significant drop in market share.
Source: SCMP
