Counterpoint previously predicted that global smartphone production would increase by 4.2% in 2025 compared to 2024. But due to the introduction of Trump's Tariffs two months ago, Counterpoint has now issued a new forecast of an increase of only 1.9%. This is because even though production in other markets increased by up to 6%, for the North American market it is expected to decrease by -3%.
The impact of these tariffs is not only on the US market because it can be seen that manufacturers are raising the prices of their products in other markets to spread costs around the world, thus reducing the increase in prices in America. Although President Trump agreed to reduce tariffs on China by 115%, he later threatened to impose a minimum tariff of 25% on iPhones and Android devices that are not manufactured in China.
From the beginning, Trump said the tariffs were to force foreign companies to return manufacturing to the country. But analysts have already stated that paying the tariffs is still cheaper than moving manufacturing to America. America does not have the factories, supply chain, expertise and skilled workforce to produce smartphones in such a short time. at this time.