Samsung Australia has pivoted its consumer business after declining revenue and profit in 2025, exiting two appliance categories, cutting marketing expenditure and reshaping its senior management team.

The local operation is now relying on stronger television and mobile sales to drive its recovery, while expanding its enterprise business and focusing on higher margin smartphones in line with global realignment of the worldwide consumer business.

Samsung Australia has recorded “record TV and mobile sales” according to sources, during the past six months following a broader global realignment.

Financial filings show local revenue declined from $2.908 billion to $2.868 billion in 2025, while net profit fell from $63.3 million in 2024 to $58.7 million.

The weaker Australian result contrasts with the performance of Samsung Electronics globally, where profits have been boosted by booming demand for memory modules and processors.

Weaker consumer division sales in 2025, saw the company reassess its product portfolio in line with a global realignment of Samsung’s consumer business.

“Samsung consistently reviews its portfolio and is optimising its core connected ecosystem to meet the evolving needs of consumers,” a Samsung Australia spokesperson told ChannelNews.

“Samsung Australia has discontinued vacuum and microwave products and will focus on refrigerator and laundry categories, reinforcing Samsung’s commitment to delivering AI Living experiences for consumers.”

As part of its cost reduction program, Samsung Australia cut its marketing budget by $17 million in 2025. The company reduced retail marketing incentives while accelerating its shift towards direct online sales, Samsung flagship stores and business channels.

Samsung recently appointed a new Australian media agency, while its engagement with local media at IFA 2026 was also significantly reduced.

One bright spot was a sharp fall in warranty costs, which dropped from $105 million to $71 million and provided some relief to operating margins.

Management Reshuffle

The operational reset follows 18 months of significant executive turnover, beginning with the departure of a long serving Consumer Electronics Vice President.

Phil Gaut was subsequently promoted to Director of Consumer Electronics. Gaut previously led Samsung’s commercial display, monitor and branded memory divisions, with his appointment signalling a push to bring greater business discipline to the consumer hardware operation.

The leadership team was further reshaped with the recruitment of former Fisher & Paykel executive Jeremy Sargeant as Sales Director and Head of Retail Management.

Mobile Business Drives Recovery

Despite pressure across parts of its Australian consumer hardware operation, Samsung’s Mobile eXperience division remains a major source of growth.

The impending release of the Galaxy Fold 8 is expected to attract tens of thousands of new customers, strengthening Samsung’s position in the premium smartphone market.

Counterpoint Research predicts Samsung will regain the number one position in global smartphone shipments in 2026.

Global smartphone shipments are forecast to decline 14.3% this year because of an acute memory supply shortage, which is placing particular pressure on Chinese manufacturers.

Samsung, however, is forecast to record shipment growth of 0.8%, supported by its integrated supply chain and extensive distribution network, potentially allowing it to move ahead of Apple.