Yong Seok-woo, head of the Visual Display Business at Samsung Electronics, poses in front of the company’s latest Micro RGB TV at a launch event in Gangnam District, April 15. Yonhap

Samsung Electronics is weighing a potential exit from its TV and home appliance sales business in China, as intensifying competition and weakening profitability continue to cloud its outlook in one of the world’s largest consumer markets.

Citing sources familiar with the matter, Japanese news outlet Nikkei reported Monday that the company is expected to decide as early as the end of this month whether to halt sales of its TVs and appliances in China, with potential plans to liquidate inventory and wind down operations within the year.

The report said Samsung is considering maintaining its local manufacturing in China even if it exits sales, repositioning its production bases as export hubs serving nearby markets for home appliances such as refrigerators, washing machines and air conditioners.

The potential withdrawal comes as Chinese brands such as TCL and Hisense rapidly gain global market share, leveraging aggressive pricing and improving product quality. The combined share of Chinese brands in the global TV market reached 31.9 percent last year, surpassing Korea’s 30.4 percent, underscoring the shifting competitive landscape.

Amid eroding margins, the exit would reflect a strategic realignment with Samsung trimming less profitable legacy businesses in China while doubling down on higher-margin segments, including semiconductors and smartphones, and premium markets for appliances, such as the United States.

However, Samsung said no final decision has been made.

“For now, the situation remains fluid and under review,” a company official said.

Still, internal concerns appear real. The company’s Head of Visual Display Business, Yong Seok-woo, publicly acknowledged the challenges in China, speaking at its launch event earlier this month. “It is true that the China business is difficult,” he said. “We are looking at it in various ways and it is currently under review.”

Signs of a pullback have already been building. Earlier this month, Chinese tech news outlet IT Home reported Samsung was weighing a major restructuring of its appliance business operations in China to focus on advanced technology businesses.

Source: Korea Times News