Samsung Electronics announced it will discontinue sales of some consumer electronics products in mainland China due to intense competition. The company stated it will make every effort to minimize any impact on customers resulting from this decision and is reviewing various support measures for business partners, according to Reuters. Samsung's memory chip business is enjoying a profit surge due to the AI boom, but its other products such as TVs, home appliances, and mobile phones face mounting competition from Chinese rivals in China and elsewhere.
Key Takeaways
Samsung Electronics announced it will discontinue sales of some consumer electronics products in mainland China due to intense competition. The company's memory chip business is thriving amid the AI boom, but its TVs, home appliances, and mobile phones face challenges from Chinese rivals. Samsung confirmed on Sunday that the final payment had been made, noting that the sum is equivalent to roughly one and a half times the country's total inheritance tax revenue for 2024.
The decision comes after Samsung reported losses of 200 billion won ($138.31 million) last year for its TV and home appliance businesses due to competition and U.S. tariffs. The company also lost market share to Apple and local rivals in the Chinese market, according to Reuters. Despite this setback, Samsung is expected to continue sales of mobile phones and chips in China.
The family behind South Korean corporate giant Samsung has completed its payment of a 12 trillion won (£6bn; $8bn) inheritance tax bill, the largest such settlement in the country's history. Chairman Lee Jae-yong and other members of the family paid the sum in six installments over the last five years, as reported by BBC. The bill is tied to the estate left by the firm's late chairman Lee Kun-hee, who died in October 2020.
The handling of the tax bill was closely watched by investors as it could have affected the Lee family's ability to retain control of Samsung. Part of Lee Kun-hee's estate, including his collection of art by Pablo Picasso and Salvador Dali, was donated to the National Museum of Korea and other cultural organizations.
Samsung Electronics' shares surged more than 15% on Wednesday, pushing the chip giant's market capitalization past the $1 trillion mark as investors continued to pile into artificial intelligence-linked stocks. This makes Samsung the second Asian company to cross the $1 trillion mark, after TSMC, according to CNBC. The rally followed Samsung Electronics' record first-quarter earnings, with operating profit surging more than eightfold to 57.2 trillion won.
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