Samsung Narrows China Store Network, Mobile Business Logs First Quarterly Loss
Samsung Electronics is shrinking its mobile store network in China, setting a monthly sales threshold of RMB 300,000 for stores. Underperforming stores are being closed, affecting cities including Shenzhen, Fuzhou, and Zhengzhou. According to IDC, Samsung's China market share fell to 0.1% in Q2 2026 from 0.4% a year earlier, with shipments down 60.8%. The company's Mobile Experience division posted its first quarterly operating loss of KRW 0.7 trillion, even as overall revenue and profit hit record highs. Samsung has not publicly detailed its China store strategy.
Samsung Electronics, after exiting China's home appliance market, is now shrinking its mobile business presence in the country. The company has set a monthly sales threshold of RMB 300,000 for its mobile stores. Stores falling below this threshold will be gradually phased out, including the closure of underperforming outlets and the dismissal of staff. Recent closures have affected stores in multiple cities, including Shenzhen, Fuzhou, Zhengzhou, Xi'an, Kunming, and Hefei. Stores and employees that consistently fail to meet the monthly sales target will be removed.
According to IDC data for the second quarter of 2026, Samsung's market share in China was only 0.1%, down from 0.4% in the same period of 2025, with shipments declining 60.8% year-on-year. Previously, in May 2026, Samsung Electronics announced it would stop selling all home appliances in the mainland China market, including TVs and monitors, while maintaining normal operations for its semiconductor, mobile terminal, and medical device businesses. The company said at the time that the move was to respond to the rapidly changing market environment.
Samsung Electronics' second-quarter 2026 earnings report showed that overall revenue and operating profit reached record highs for the third consecutive quarter, but its Mobile Experience (MX) business recorded an operating loss of KRW 0.7 trillion, marking the first loss for Samsung's mobile business. As of the time of reporting, Samsung had not made a public response regarding its specific strategy for shrinking its China store network.
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