Samsung Electronics is preparing to stop selling home appliances and televisions in China before the end of this year, according to a report by Japan’s Nikkei newspaper.
The report revealed that the company could reach a final decision as early as the end of April. If approved, Samsung would begin winding down sales of products including televisions, refrigerators, washing machines and air conditioners in the Chinese market.
While retail sales may end, Samsung is expected to keep its factories in China. Those sites would instead support overseas demand by producing goods for export markets.
The planned exit is influenced by the number of Chinese manufacturers now operating in the local market with lower prices and stronger product quality. Brands such as Haier, Hisense and TCL have also expanded beyond China, increasing competition abroad.
Samsung once held a stronger position in China’s consumer electronics market, but local competitors have steadily reduced its share in recent years.
In a statement, Samsung said it regularly reviews its global business structure in response to changes in operating conditions. The company added that nothing has been decided regarding speculation over possible restructuring in China.
If the withdrawal goes ahead, Samsung would lose direct access to one of the world’s largest appliance markets. However, it would still maintain a manufacturing base in China while focusing sales on regions where its premium products are more competitive.
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