The South Korean technology giant Samsung Electronics announced Wednesday it will halt sales of certain consumer products in mainland China as the company struggles against fierce local competition.
“The company will make every effort to minimize any impact on customers resulting from this decision, and is reviewing various support measures for business partners,” Samsung stated following initial reports from South Korean news outlets about the withdrawal of TV and home appliance sales from China.
The decision comes as Samsung’s consumer electronics face increasing pressure from Chinese competitors both domestically and internationally, even as the company’s memory chip division experiences strong profits driven by artificial intelligence demand.
Earlier this week on Monday, Samsung announced a leadership change in its television division, replacing the department head for the first time in over two years.
The company’s struggles became evident last December when Chinese manufacturer TCL temporarily surpassed Samsung as the world’s leading TV seller, according to research firm Counterpoint. TCL has since formed a strategic alliance with Japan’s Sony.
Samsung’s television and home appliance operations recorded losses totaling 200 billion won, equivalent to $138.31 million, during the previous year due to competitive pressures and tariffs imposed by the United States.
The global smartphone market’s second-largest player has also seen its Chinese market position weaken against Apple and domestic competitors, while simultaneously facing new challenges from emerging rivals like ChangXin Memory Technologies in the semiconductor sector.
Despite these withdrawals, Samsung plans to maintain its mobile phone and chip sales operations in China.
