Samsung pulling TVs, home appliances from China

Samsung Electronics is ceasing sales of televisions and home appliances in China as the South Korean technology giant shrinks its footprint in one of the world’s largest consumer markets amid fierce competition from domestic brands.

Samsung said the decision to discontinue sales of certain consumer electronics products in China came amid intensifying competition in the local market and a rapidly changing business environment.

“The company will make every effort to minimize any impact on customers resulting from this decision, and is reviewing various support measures for business partners,” it said in a brief statement.

The decision directly affects Samsung’s sales of consumer electronics such as TVs, washing machines and refrigerators in China, according to company officials. Production at a home-appliance factory in Suzhou isn’t affected, and Samsung will continue to sell smartphones and computer chips in China, they said.

The move comes as the company’s TV and other segments continue to struggle, even as its chip division posted record earnings and revenue growth driven by artificial-intelligence demand. Samsung’s TV and home-appliance division reported an operating loss of 200 billion won, equivalent to $138.4 million, last year.

Samsung’s market share in China’s consumer electronics sector has significantly declined, according to Chinese state media, citing data from market research firm AVC Revo.

As of early April, Samsung’s share of the offline market in China stood at 3.62% for color TVs, 0.41% for refrigerators and 0.38% for washing machines. Chinese consumer electronics brands dominated the local market, with a combined market share of more than 90% in the TV sector and over 60% for the home-appliance sector, according to China Daily.

Earlier this week, Samsung replaced its TV business chief, as it sought to address sluggishness in the segment.

Write to Kwanwoo Jun at Kwanwoo.Jun@wsj.com