Shrinking profits force Samsung to stop home appliances sales in China

Samsung Electronics has reportedly decided to scale back its business selling home appliances and televisions in China, as intensifying competition and shrinking margins weigh on one of its key markets.

This decision was first reported by the Korean news agency Yonhap, citing industry sources that informed them that the tech giant has already informed Chinese suppliers that it will stop selling particular product lines.

The move is believed to be linked to rising costs, global economic uncertainty and the growing strength of domestic Chinese manufacturers, which have steadily eroded the position of foreign brands in the consumer electronics sector.

Sources said Samsung’s China sales division reported net profit of 168 billion won (approx. $116 million) last year, down sharply from roughly 300 billion won the year before.

As reported earlier by Caliber.Az, speculations were already circulating within the industry of an imminent restructuring in China amid mounting competitive pressure and tariff risks. Earlier this week, Samsung also replaced the head of its television business as part of a broader corporate overhaul.

According to the media report, Samsung’s other operations in China—including mobile devices, semiconductors and medical equipment—will continue as usual.

By Nazrin Sadigova