Samsung Electronics Co may have a competitive edge over Apple Inc as escalating tariffs on Chinese goods under former President Donald Trump’s renewed trade strategy cast uncertainty over the global technology sector.
Samsung’s supply chain avoids many China-specific risks.
Apple still reliant on China
Unlike US-owned Apple, which still produces an estimated 90% of its iPhones in China, Samsung manufactures most of its smartphones outside the world’s second-largest economy – primarily in Vietnam, India, South Korea and Brazil.
This geographical diversity could insulate Samsung from the full impact of tariffs now applied to a broad swathe of Chinese imports, which currently face rates of at least 145%.
Although smartphones and certain technology components are temporarily exempt from the latest round of reciprocal tariffs, Trump has signalled further levies targeting semiconductors – a critical input in all electronic devices – are imminent.
The long-term implications for US companies whose manufacturing is exposed to China are clear.
Even so, analysts caution against assuming immediate commercial gains for Samsung.
Brand loyalty and divergent product strategies remain significant barriers. Apple’s customer base is comparatively faithful to the brand, and are unlikely to swap to Samsung overnight – particularly as the iPhone has many features that brand users need to have in common to communicate, such as FaceTime and Messages.
Rising tariff tide will sink all ships
Further complicating the picture is Trump’s broader manufacturing agenda, which includes levies on goods from Vietnam and India – albeit at lower rates of 10% – meaning Samsung will still be exposed to some downstream effects.
Apple’s exposure to Chinese production has drawn widespread scrutiny, with UBS estimating tariffs could inflate the price of an iPhone 16 Pro Max by as much as US$800.
While Apple is increasing output in India, only about 10% of iPhones are currently produced outside China.
Samsung, by contrast, closed its final Chinese handset plant in 2019 and today produces roughly 90% of its smartphones in Vietnam alone.
The company also benefits from vertical integration across key components, including chips and displays.
But as the tariffs start to bite across the board, a new smartphone of any variety is likely to slip further down the list of consumer priorities, below food and other essentials.