Samsung pulls back further in China as phone store cuts deepen and chip profits take center stage

Samsung Electronics is retreating again in China, this time through its smartphone channel network. A recent report cited by Sina Tech said stores generating less than RMB 300,000 in monthly sales will be phased out, with closures already seen in Shenzhen, Fuzhou, Zhengzhou and Xi’an. The move comes just three months after Samsung said it would exit China’s home appliance market, while keeping semiconductors, mobile devices and medical equipment operating in the country. The contrast inside Samsung’s business is stark. IDC data cited in the article shows Samsung’s share of China’s smartphone market fell to 0.1% in the second quarter of 2026, with shipments down 60.8% year over year. Yet Omdia data shows Samsung still led the global smartphone market in the same quarter, shipping 60.5 million units and holding a 22% share. The piece argues Samsung’s China setback reflects a mix of pricing pressure from local brands, weaker localization in software and payments, and shifting brand appeal. At the same time, Samsung’s latest quarterly earnings showed semiconductors accounting for 99.7% of operating profit, while the mobile and appliance division slipped into loss. That gap is pushing the group toward a narrower, premium-focused strategy in China, even as concentration around chips raises a different set of risks.