Samsung scales down offline stores in China as monthly sales fall short of 300,000 RMB

After diplomatic relations were established between China and South Korea in 1992, Samsung entered the Chinese market that same year, setting up factories in Huizhou, Tianjin, and Dongguan, initially selling home appliances such as televisions, refrigerators, and washing machines. During the feature phone era, Samsung marketed under the 'Anycall' brand with a design and high-end focus, launching differentiated products such as slide phones and dual-screen clamshells, and was among the first to adopt TFT color screens and polyphonic ringtones. The SGH-T108, launched in 2002, had a retail price above 7,000 RMB when the average monthly wage for urban workers was just over 1,000 RMB. By around 2008, Samsung had secured the second-largest share in the domestic market at about 16%, trailing only Nokia.

In 2010, Samsung released the first Galaxy S, which became the main Android competitor to the iPhone 4. The Galaxy S2, launched in 2011, achieved global sales of 5 million units in 85 days and exceeded 10 million units in five months. That year, Samsung's global shipments surpassed Apple for the first time, and it held the top position in global smartphone shipments for several consecutive years. In 2012, Samsung's market share in China reached 17.7%, placing it first; in one quarter of 2013, its share approached 22%. Samsung adopted a strategy of 'flagship models establishing high-end credibility, mid-range and low-end models driving volume, and carrier channels providing distribution', covering price points from high to low.

In 2014, Apple launched the iPhone 6 and 6 Plus, its first large-screen designs, impacting Samsung's high-end market. In the first quarter of 2015, Apple topped the Chinese market with a 14.7% share. That same year, Xiaomi surpassed Samsung in 2014 to become the domestic leader through cost-effectiveness and internet marketing; Huawei, OPPO, and vivo also pushed aggressively in the mid-to-low end. Samsung's China sales declined from about 58.5 million units in 2014 to one-third less in 2015, dropping its share to single digits and its ranking to sixth.

In 2016, Samsung released the Galaxy Note7, which suffered from battery defects causing fires and explosions in multiple regions worldwide. Several airlines listed it as banned items. On September 2, Samsung announced a global recall of about 2.5 million Note7 units but excluded the Chinese market, citing local models using ATL batteries versus SDI for international versions. On September 18, the first spontaneous combustion of a Chinese-market Note7 occurred, followed by several similar incidents. Samsung initially denied the product had issues, stating test results indicated damage from external heating. On September 14, after being summoned by the General Administration of Quality Supervision, Inspection and Quarantine, Samsung recalled 1,858 units of Chinese market testing devices but not retail versions. On October 11, Samsung announced a global halt to production and sales of the Note7 and initiated a full recall in China covering 190,984 units.

Thereafter, Samsung's market share in China continued to decline: 4.9% in 2016, falling to just above 2% in 2017, and dropping below 1% in 2018, when it was relegated to the 'other' brand category. In 2017, Samsung sold about 11.07 million units in China, less than half of the 2016 figure. At the end of 2018, Samsung shut its Tianjin mobile phone factory; in October 2019, its Huizhou factory, the last mobile phone manufacturing plant in China, was closed. After exiting production, Samsung continued selling Galaxy S, Galaxy Note, and foldable series products in China, and maintained both online and offline retail channels.

In May 2026, Samsung announced it would stop selling home appliances such as televisions, monitors, and refrigerators in China, while stating that mobile phones, storage, and medical equipment businesses continued normal operations. In the second quarter of 2026, Samsung's market share in China's smartphone market was 0.1%, with about 70,000 units sold that quarter. During the same year, Samsung mobile phone stores in Shenzhen, Fuzhou, Zhengzhou, Xi'an, Kunming, and Hefei were closed, reportedly because stores with monthly sales below 300,000 RMB would be gradually phased out. Meanwhile, Samsung remained the global leader in the smartphone market.