As trade tensions between the U.S. and China escalate, one key difference between two of the world’s top smartphone brands could become more important than ever: where their devices are made.
Apple continues to rely heavily on China for assembling most of its iPhones. Despite some efforts to diversify production, recent estimates suggest that nearly 90% of iPhones are still produced in Chinese factories. In contrast, Samsung, Apple’s largest competitor by global market share, has long since reduced its manufacturing presence in China. The majority of Samsung’s smartphones are now assembled in Vietnam, India, South Korea, and Brazil.
This geographic advantage could prove valuable as the U.S. implements aggressive new tariffs on Chinese imports. Although smartphones have temporarily been spared from direct tariffs, new levies are being considered on crucial electronic components such as semiconductors. If tariffs expand to include entire devices, Apple may face a difficult road ahead, potentially resulting in price hikes or supply chain disruptions.
Samsung, having moved its phone production out of China years ago, appears better positioned to weather this storm. Its diversified manufacturing strategy means it’s less likely to be directly impacted by potential tariffs on Chinese-made goods. Experts suggest this could give Samsung a temporary edge in pricing and operational stability.
Still, analysts caution against assuming Samsung will see an immediate surge in sales. Brand loyalty in the smartphone market runs deep, especially for Apple. Many consumers are unlikely to switch brands based solely on price increases or manufacturing origins.
Even so, Samsung benefits from its unique vertical integration. Not only does the company sell smartphones, but it also manufactures key components like displays, memory chips, and processors. This allows Samsung to control a larger portion of its supply chain, potentially shielding it from some of the volatility other brands might face.
In India, Samsung has doubled down on its investment. The company opened what it calls the largest mobile phone factory in the world back in 2018. As of 2024, it remains the top exporter of smartphones from India, a position it shares with Apple. Both companies together account for nearly all of India’s smartphone exports, though Apple is still ramping up its India-based production.
Samsung’s broad product range also helps it navigate global market changes. While Apple focuses primarily on high-end models like the iPhone Pro series, Samsung offers a wide spectrum, from budget-friendly Galaxy A-series devices to premium Galaxy S and Z models. Analysts note that Samsung’s mid- and low-tier phones are key volume drivers, especially in price-sensitive markets.
Despite the potential manufacturing advantage, Samsung’s gains might be limited. Apple is actively shifting more of its production to India and Vietnam, particularly for models destined for the U.S. market. Over time, this could reduce Apple’s vulnerability to Chinese tariffs and help contain costs.
Furthermore, broader economic concerns could overshadow tariff-related advantages for either company. Rising prices caused by tariffs on everyday goods — from food to electronics — could reduce consumer spending. In developed markets like the U.S., consumers might delay upgrading their phones, especially if premium devices become more expensive.
Emerging markets could also see slowed smartphone demand if economic pressure reduces disposable income. Consumers facing higher costs for essentials may prioritize those over technology upgrades.
While Samsung’s diversified production footprint gives it a buffer against immediate tariff shocks, the long-term outcome will likely depend on how both companies adapt to changing trade policies, and how much inflation impacts global smartphone demand.
In short, Samsung’s strategic manufacturing locations give it an edge in the current climate, but the ultimate winners and losers in this tariff standoff will depend on broader economic forces and consumer behavior.
