Increased tariffs may potentially affect Samsung smartphones, while iPhones produced in China are spared from these charges.
In the ongoing saga of US tariffs on smartphones, Samsung Electronics has seen a significant boost in its US market share, outpacing Apple's growth. This shift in fortunes, as reported in Q2 2025, has been attributed to tariff-driven consumer urgency and effective inventory management.
According to Samsung's CFO, Park Soon-cheol, the US Department of Commerce's investigation into semiconductors and finished goods like smartphones, tablets, PCs, and monitors could have a substantial impact on Samsung's business. This impact is already being felt, with Samsung's US smartphone shipments surging 38% year-on-year in Q2 2025.
In contrast, Apple's US iPhone shipments declined about 11% year-on-year in the same quarter, largely due to supply chain shifts moving production from China to India, which limited immediate US supply despite global shipment growth.
The potential tariffs, if applied, could lead to price hikes for Samsung's Galaxy S25 and future series, with the base model of the Galaxy S25 rising by nearly $200 if tariffs are set at 25%. Samsung, however, may consider price increases in "special cases like tariffs" after product launches, as a means to offset the additional costs.
Apple, which manufactures about 90% of its iPhones in China, has announced a preemptive investment of $600 billion in new US production facilities over the next four years. This move, made in coordination with the US administration, is expected to create 20,000 jobs and strengthen domestic supply chains.
While Samsung currently holds a 31% share in the US market, Apple's investment could potentially give the tech giant an edge, especially if it results in lower tariffs or exemptions. President Trump has signaled support for Apple's expansion, raising expectations that the company could be spared from the proposed tariffs.
Samsung, on the other hand, manufactures approximately 50-60% of its smartphones in Vietnam, with the rest produced in India, Korea, and South America. The company is closely monitoring developments related to potential tariffs, as any increase could weaken Samsung's recent gains in the US market.
In the battle of the smartphone giants, Samsung's lead in the growing foldable phone segment is helping it gain market traction against Apple in the US. Apple is expected to enter the foldable market with its rumored 2026 model priced similarly to Samsung’s flagship foldable, but Samsung's early entry has allowed it to temporarily strengthen its market position.
In summary, while current US tariffs have helped Samsung gain ground relative to Apple in the US smartphone market, Apple’s global market remains strong, and future tariff changes or product launches (like foldables) could shift this balance. The dynamic between these two tech titans continues to evolve, with both companies adapting their strategies to navigate the complex landscape of US tariffs and global competition.
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