Samsung Electronics' plant in Xi'an, China / Courtesy of Samsung Electronics
Samsung Electronics has decided to withdraw its home appliance and TV sales business in China amid its struggle to shore up its presence in one of the world's most important markets, industry sources said Wednesday.
But its mobile, semiconductor and medical equipment businesses will remain in place in the neighboring country, the sources said.
Samsung has recently notified its vendors in China of its decision to end its home appliance and TV sales business there.
Samsung's decision to pull out from China came as the Korean tech giant has been facing increased costs amid global uncertainties and losing ground against Chinese firms.
Samsung's sales unit in China logged a net profit 168 billion won ($116 million) last year, sharply down from the previous year's 300 billion won in net profit.
Earlier, Samsung Electronics said it was reviewing a business reorganization in the face of increased competition in the home appliance sector and tariff risks.
Earlier this week, Samsung, the world's No. 1 TV maker, replaced its head of TV to tackle increasing challenges at home and abroad. (Yonhap)
Source: Korea Times News
