Samsung to Exit China’s Home Appliance and TV Market in 2024

SEOUL — Samsung Electronics is set to withdraw its home appliance and television sales from the Chinese market by the end of 2026, marking a strategic shift in its operations in the world’s second-largest economy. The move, first reported by Nikkei Asia and confirmed by industry insiders, reflects Samsung’s declining market share in China’s highly competitive consumer electronics sector and its pivot toward higher-margin businesses, particularly semiconductors and mobile devices.

Exit from Home Appliances and TVs

According to sources familiar with the matter, Samsung will cease direct sales of its home appliances—including refrigerators, washing machines, and air conditioners—as well as televisions in China this year. The company’s decision follows years of shrinking market share, driven by the rise of domestic Chinese brands such as Haier, Midea, and TCL, which have expanded aggressively into the high-end segment. Industry data from research firm AVC Revo shows Samsung’s share in China’s TV market stood at just 3.6% as of April 2026, ranking fifth behind local competitors. Its share in refrigerators and washing machines was even lower, at 0.4% each, placing it outside the top 10 in both categories.

The withdrawal does not signal a complete exit from manufacturing in China. Samsung will retain its production facilities for home appliances to supply overseas markets, particularly in the United States and Europe, where its brand remains strong. The shift to an agency model—where third-party distributors handle sales rather than Samsung’s own retail operations—was described by Chen Hui, general manager at AVC Revo, as a cost-saving measure. Industry sources told Yicai Global that Samsung Display’s Chinese distributors have already suspended shipments in anticipation of the transition.

Decline in Market Share and Strategic Rationale

Samsung’s retreat from China’s consumer electronics market is the culmination of a years-long decline. At its peak in 2014 and 2015, the company sold approximately $3 billion worth of televisions and $1 billion in home appliances annually in China. By 2026, its sales targets for these categories had plummeted to just 5% and 1% of those peak figures, respectively. The company’s absence from the 2026 Appliance and Electronics World Expo in March—a first in years—further underscored its diminished presence in the market.

The decision to scale back in China aligns with Samsung’s broader strategy to prioritize semiconductors, mobile devices, and high-growth markets like the U.S. While the company will continue selling smartphones and memory chips in China, its focus on these segments reflects a recognition of its limited competitiveness in consumer electronics against local rivals. Price sensitivity and the rapid innovation cycles of Chinese brands have made it difficult for Samsung to maintain profitability in appliances and TVs, despite its reputation for premium products.

Financial Performance and Future Focus

Samsung’s visual display and home appliance division reported a loss of 200 billion won (approximately $136 million) in 2025, though the company expects to return to profitability in the first quarter of 2026. Yong Seok-woo, head of Samsung’s visual display division, dismissed speculation of a broader crisis during the company’s The First Look Seoul 2026 event, calling recent reports of a downturn “exaggerated.” He emphasized that the division’s diversified portfolio—including soundbars, monitors, and business-to-business signage—helps mitigate risks in the traditional TV market. Samsung has also expanded its service-based revenue through subscription models tied to its installed base of televisions.

In a bid to revitalize its TV business, Samsung declared 2026 “the year AI TVs go mainstream,” unveiling a new lineup with artificial intelligence features across most models. The company has also expanded its ultra-premium Micro RGB TV range, signaling a shift toward higher-margin products. However, these efforts have yet to reverse its declining market share in China, where local brands dominate both the mid-range and premium segments.

Broader Implications for Samsung’s Global Strategy

The withdrawal from China’s home appliance and TV markets is part of Samsung’s larger restructuring efforts to streamline operations and focus on core competencies. The company’s semiconductor division, which includes memory chips and foundry services, remains a key growth driver, particularly as demand for AI-related hardware surges. Samsung’s mobile division, led by its Galaxy smartphones, also continues to perform well in global markets, though it faces intense competition from Apple and Chinese brands like Huawei, and Xiaomi.

For China, Samsung’s exit underscores the challenges foreign brands face in a market increasingly dominated by domestic players. While the company will maintain a presence through manufacturing and select product lines, its retreat from direct sales reflects the realities of a market where local brands have gained significant ground in both innovation and pricing. The move may also signal a broader trend of multinational tech companies reassessing their China strategies amid geopolitical tensions and shifting consumer preferences.

As Samsung refocuses its resources on semiconductors and mobile devices, its long-term success in China will depend on its ability to leverage these segments while navigating an increasingly competitive landscape. For now, the company’s withdrawal from home appliances and TVs marks the end of an era for one of the world’s most recognizable consumer electronics brands in the Chinese market.