Hello, I’m Technologytodaynow. Recently, U.S. President Donald Trump announced a mutual tariff policy, raising the prospect that the prices of Samsung Galaxy and Apple iPhone could rise more than expected. According to a recent report, there was also shocking news that the top model of the iPhone could cost up to W3.34 million, and Samsung’s Galaxy Z Fold series could cost up to W4 million. Let’s take a closer look at what’s going on, how Korean smartphone prices will change in the future, and the current situation.
How US Tariff Policy Will Affect Apple iPhone and Samsung Galaxy Prices
President Trump announced that he would impose a 10% basic tariff on all products imported into the United States, and additionally impose reciprocal tariffs that are differentiated by country. A 54% tariff will be imposed on China, a 46% tariff on Vietnam, and a 25% tariff on South Korean products. Of these, China and Vietnam are major smartphone production bases for Apple and Samsung, and the two companies are expected to be directly hit.
Apple’s iPhone Price Hike Possible
Apple produces 90% of all iPhones in China. If a 54% tariff is imposed on Chinese products under the US tariff policy, there are predictions that a 1 million won iPhone produced in China will go up to 1.54 million won when imported to the US.
According to an analysis by Wall Street Rosenblatt Securities, the iPhone 16 base model launched at $799 in the U.S. could be raised to up to $1142, and the iPhone 16 Pro Max could reach $2,300, a 43% increase from $1,599. Neil Shah, vice president of Counterpoint Research, also predicted that Apple would inevitably raise prices by more than 30% on average to offset the cost of tariffs. Apple received tariff exemptions for Chinese imports during the Trump administration, but this time, predictions are coming out that the situation will be different, so Apple’s products are likely to raise prices.
Samsung Galaxy Price Hike Possible
The situation is similar for Samsung Electronics like Apple. Samsung Galaxy produces about 50 percent of its total production in Vietnam and about 30 percent in India. In particular, the 46 percent high tariff imposed on Vietnam will be a big blow. This is because Vietnam produces a lot of premium products such as Galaxy S and Z series and entry-level products such as Galaxy A series. In addition, Samsung Electronics produced 22 percent of its smartphone shipments through ODM (Manufacturer Development Production), which is commissioned to produce to outside companies such as China, last year, and these products are also subject to China’s 54 percent tariff rate.
Therefore, if a tariff of about 40% is reflected on the Galaxy Z Fold 6, which is currently sold in the US for $1,900, the price could rise to a whopping $2,744, or about 4 million won. Since this announcement of reciprocal tariffs by the US is basically a policy applied to products imported into the US, it will directly affect the prices of US smartphones. In other words, only the prices of smartphones in the US will rise, but if this happens, the prices of smartphones in the global market, including Korea, are expected to rise as well.
Impact on the Global Market
A significant increase in prices by Samsung and Apple in the U.S. alone could result in sluggish sales in the largest market, the U.S., which could also be a problem for global pricing policy.
Therefore, rather than reflecting the cost burden of U.S. tariffs solely on U.S. prices, it is likely to spread across global markets to push for some level of price increases in all countries.
If this happens, it will be inevitable to increase the price of smartphones in Korea. It could also increase the possibility that Samsung and Apple will move their major production areas to countries with less tariff burden to solve the excessive tariff problem. For example, if we move our factories in China or Vietnam to India, Korea, Brazil, etc., we will incur additional costs due to initial facility investment and production line construction. These costs will eventually be reflected in product costs, which will be a factor in raising smartphone prices in the entire global market including Korea.
Samsung, Apple Why It’s Hard to Raise Prices
However, despite these tariff burdens, there are also predictions that Apple and Samsung will find it difficult to significantly raise smartphone prices. With flagship smartphones already priced at close to 2 million won, further price increases could result in strong backlash from consumers. Angelo Zino, an analyst at CFRA Research, also predicted that Apple would find it difficult to pass on more than 5% to 10% of the additional costs due to tariffs to consumers.
And if Samsung and Apple significantly increase their prices, they are more likely to lose their share of the global smartphone market to Chinese manufacturers. Chinese smartphone makers are less affected by the tariff policy because they export less to the U.S.
This has made Chinese smartphones relatively more competitive in price, and is likely to rapidly increase their share in the global market. This is why there are predictions that Samsung and Apple will not be able to significantly raise their prices despite the US tariff bomb.
Conclusion
In the end, the impact of the U.S. tariff bomb on Korean consumers is not yet clear, but it is expected to have some kind of ripple effect. In particular, it is worth paying attention to the prices of new products such as the Galaxy Z Fold 7, Galaxy Z Flip 7, and iPhone 17, which are scheduled to be released in the second half of this year. Looking at the changes in the U.S. prices and global prices of these products, I think we can predict the future price policies of Apple and Samsung. Due to the U.S. tariff policy, there will be a big change in global smartphone prices, including Korea, soon.
In the future, we will closely watch the changes in U.S. policy and the direction of companies’ response and tell you as soon as new news comes in.