Unable to compete with the onslaught of Chinese companies, Samsung has finally thrown in the towel and exited the Chinese home appliance market.
Chinese companies have been able to launch competitively priced products with impressive technology, which has caused Samsung's home appliance and TV sales to plummet sharply.
However, Samsung will continue to provide after-sales service and maintenance for products that consumers have already purchased.
Although Samsung is stopping sales of home appliances in the Chinese market, Suzhou's Samsung factory will continue to operate. However, the products from that factory will no longer be sold within China, but will be exclusively manufactured for export to other countries.
Samsung is now pivoting away from the struggling home appliance business in China and will focus its full efforts on profitable sectors like smartphones and semiconductors (Chips).
This market shift could potentially impact not just China, but Samsung's home appliance operations worldwide.
Samsung will continue to manufacture key products like refrigerators and washing machines itself, but is preparing to transition its system of outsourcing products like dishwashers and microwaves to other companies.
For Samsung, a global technology leader, this represents a major overhaul of its business operations.
Ref: Bangkokpost
