In the midst of deepening issues between China and the U.S., the China sales of Samsung Electronics faced a huge decline. And it facing a major low in Q1 2023. According to the newest quarter report, the percentage of Samsung’s China sales has declined by a single digit. This reduction in sales indicates an unsatisfactory sign for the South Korean technology behemoth.
Talking about the quarterly sales report then Samsung sales were KRW 5.5652 trillion in Q1 2023 in China. To be more precise, this is just 8.73% of its total sales of KRW 6.37 trillion. This has been recorded as the lowest quarter number so far. Notably, the share of sales produced by Samsung’s Chinese subsidiaries has reduced every year.
Samsung may discontinue its business in China
Reportedly in 2019, sales record 18.06%, while subsequently fell below 8% this year. This has been following 16.29% in 2021 and 11.78% in 2022 respectively. On the other hand, Samsung’s complete sales together with its Chinese headquarters and other subsidiaries plunge by 46.7% to KRW 7.91 trillion from KRW 14.96 trillion the last year.
The resultant deep decline is added by several factors along with global uncertainties. This includes the major US-China rivalry. This causes Chinese unsupported thoughts with respect to Korean companies, which comprise Samsung as well. This would lead to a reduction in Samsung’s China sales. At the same time, the Chinese economy is also stock-still after the global COVID-19 pandemic. On the other hand, US-supportive policies enabled big giants like Samsung and SK Hynix to expand in the market. Whereas, Samsung’s disengagement from China could be a shocking reality.
FOLLOW US ON SOCIAL MEDIA – Telegram, Twitter, Facebook, & Google News.