Samsung smartphones in the US may rise in price due to new duties
Samsung currently has a price advantage over the iPhone in the US, but this could change in the near future. The reason for this is the economic policy of the Donald Trump administration, which includes the possible introduction of additional duties.
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Earlier, the US imposed a 25% duty on goods from Canada and 10% on goods from China and Mexico. This could be an advantage for Samsung, as most iPhones are made in China. However, the Trump administration is considering a 10% duty for all countries, which would level the playing field.
Business professor Kim Kyung-won of Sejong University said that Samsung should actively engage with the US government and invest in local production, such as building chip factories.
The Galaxy S25. Illustration: SamMobile
The high cost of components, especially processors, is already making it difficult for Samsung to introduce significant upgrades. The new duties could further reduce the company's profits, which would be a serious blow given the difficulties in its core business of memory production.
There are rumours that the US may make exceptions for Apple and Tesla. If this happens, Samsung will be in a difficult situation. The company plans to ship 40 million Galaxy S25 smartphones, but the duties may prevent it from achieving this goal.
Samsung currently has a 23% share of the US smartphone market, with 15% of its global sales coming from North America. In the fourth quarter of 2024, its mobile division generated $80.8 billion in revenue (+4%), but profits fell by 22.2%. New duties could further complicate the situation. New duties could further complicate the situation.
Source: SamMobile
