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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] amsung Electronics has decided to officially withdraw from its TV and home appliance sales business in China, amid intensifying competition with local players and slowing market growth.
According to industry sources on May 6, the company notified its local employees that it will halt sales of TV and home appliance products in the Chinese market. However, high-value businesses such as mobile, semiconductors, and medical devices will continue operations.
The move is seen as part of Samsung’s broader “selection and concentration” strategy, aimed at strengthening its core businesses. Facing mounting pressure from aggressive pricing by local competitors and market saturation, the company is opting to scale back its low-margin consumer electronics segment and redirect resources toward advanced technology sectors, including semiconductors and mobile.
In particular, Samsung plans to target the premium smartphone segment with its Galaxy AI lineup. The company will continue launching China-specific models such as the “W Series (Heart of the World)” while expanding partnerships with leading local artificial intelligence firms to deliver AI features tailored to Chinese consumers.
Despite exiting the sales business, Samsung will maintain China as a key production base and strategic technology hub. Its Suzhou home appliance plant, along with semiconductor facilities in Xi’an and Suzhou, will continue normal operations. Research and development activities related to mobile, home appliances, and TVs will also be sustained through local R&D centers.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
