Samsung Withdraws from China's Appliance Market: The Downfall of the World’s Top Manufacturer due to "Arrogant" Strategies Over the Past Decade

On May 6, 2026, Samsung Electronics’ Chinese subsidiary announced on its official website that it would cease the sale of all home appliances, including televisions, monitors, refrigerators, and washing machines, in the domestic market. While the company will continue to sell mobile phones and storage products, this decision effectively marks the end of Samsung’s once-dominant presence in the Chinese home appliance market.

A Quiet Yet Decisive Withdrawal

This decision was not made overnight. When Samsung skipped the Appliance & Electronics World Expo (AWE) held in March, industry insiders already considered it a sign of the company scaling back its presence in the Chinese market. By April, plans to withdraw from the TV and appliance business within the year had been leaked. Some distributors reportedly received notifications to stop restocking and clear inventory as early as a month prior.

The withdrawal covers a wide range of products, including TVs, monitors, large-scale commercial monitors, air conditioners, refrigerators, washing machines, dryers, washer-dryer combos, garment care appliances, audio equipment, projectors, vacuum cleaners, and air purifiers. Even Samsung’s strong performers, such as monitors and soundbars, are included in the pullout. While Samsung managed to generate some revenue in the high-end monitor segment priced above 3,000 yuan, its overall market share was below 3%. Similarly, its soundbars, which held the second-largest market share domestically, are also being discontinued in China.

Samsung has stated it will continue providing after-sales services in compliance with relevant laws and regulations. However, internal workforce reductions have reportedly begun, with remaining staff in the smartphone division also potentially affected. Severance packages are capped at “N+3,” and stricter conditions could be imposed depending on regions or departments.

A “Korean Mindset” That Failed to Adapt

It is true that Samsung has long held the top spot in global TV sales. However, this formula for success proved ineffective in China, the world’s second-largest TV market.

The primary reason lies in misreading market trends and failing to localize its offerings. In China’s TV market, price segments below 4,000 yuan account for 60% of total sales. However, Samsung stubbornly adhered to its high-end strategy, offering few cost-effective options. Moreover, it stuck to a “global standardized product” strategy, failing to include features and user experiences tailored to the preferences of Chinese consumers, such as smart functionalities, user interfaces, and software compatibility.

As a result, Samsung’s market share plummeted. In 2013, Samsung held more than 18% of the Chinese TV market and was a leader in refrigerators and washing machines as well. By 2025, however, its TV market share had dropped to 3.62%, with refrigerators and washing machines at just 0.41% and 0.38%, respectively, removing Samsung from the list of major players.

Technologically, Samsung also fell behind Chinese competitors. Brands like TCL and Hisense rapidly gained ground in the Mini LED TV segment, capturing a retail volume market share of 31.8% and a retail value share of 55.4% by 2024. In comparison, Samsung’s flagship OLED TVs held a negligible 0.2% retail volume share in China. The company failed to keep pace with the transition from LCD to OLED and then to Mini LED technology, leaving its products out of sync with market demands.

The End of the “Japan-Korea Appliance Era”

Samsung’s withdrawal from China is not an isolated event. Since the 1990s, Japanese and Korean appliance brands like Panasonic, Toshiba, Sony, and LG dominated the Chinese market with their technological prowess and strong brand appeal. However, as domestic supply chains improved and Chinese brands leveraged their cost advantages, the survival space for foreign brands rapidly shrank during the second decade of the 21st century.

Sharp was acquired by Foxconn in 2016, Toshiba sold its TV business to Hisense in 2017, Sony formed a joint venture with TCL, and Panasonic entrusted its TV operations to Skyworth. Samsung’s withdrawal appears to be the final chapter in this trend.

According to Euromonitor data, Chinese brands like TCL and Hisense collectively held a 31.9% share of global TV sales in 2025, surpassing the combined share of Samsung and LG at 30.4%. Market analysts predict that Chinese brands will overtake Samsung as the global leader in television sales within the next few years.

Challenges Ahead for Chinese Brands

Samsung’s departure further diminishes the presence of foreign brands in China’s home appliance market. However, this does not imply smooth sailing for the remaining players. Samsung primarily lost its foothold in the high-end market, a segment that Chinese brands are now likely to target with increased competition.

More importantly, the global market remains a critical battleground. Japanese and Korean brands still wield significant influence in Europe and the Americas. For Chinese brands to truly achieve global dominance, winning the domestic market alone is insufficient. Samsung’s exit from China serves as both a milestone for Chinese manufacturers and a rallying call for their next battle on the global stage.