As corporations withdraw from China due to the impact of tariffs from the United States, the production ratio of smartphones by country is expected to change.
On the 10th, market research firm Counterpoint Research announced the latest global smartphone manufacturing allocation tracking report.
According to the report, more than 90% of the global smartphone manufacturing output last year was concentrated in China, India, and Vietnam, but this year, the production ratio by country is expected to change due to the impact of tariffs.
Counterpoint Research analyzed that China will experience a decline in production along with sluggish domestic market.
Ivan Lam, a senior analyst at Counterpoint Research, noted, "Although the global smartphone manufacturing transition accelerated after the COVID-19 pandemic, tariffs have impacted all tiers of industry participants, from top component suppliers to lower importers, distributors, brands, and manufacturers."
He added, "As a result, corporations have no choice but to withdraw from China and allocate more production capacity and output to other countries."
He further remarked that the production volumes in Vietnam, which is close to China and has manufacturing and export capabilities, as well as in India, which has growth potential, are expected to increase.
In particular, India is expected to account for 20% of global production this year, recording a double-digit growth rate, thanks to export demand from Apple and Samsung.
For major smartphone manufacturers like Apple and Samsung, it is expected to take decades to produce smartphones in the U.S. in response to tariffs. If tariff policies are maintained, production ratios by country are likely to continue to change.
Additionally, global smartphone manufacturing output, which increased by 4% in 2024, is expected to decrease by 1% this year compared to last year.
Counterpoint Research pointed out that the foldable phone market is also experiencing slow growth. Counterpoint explained that foldable phone sales in Europe grew by about 4% in the first quarter compared to the same period last year, which is a negligible growth rate for an emerging market. Foldable phones accounted for only 1.5% of total smartphone sales in Europe.
Jan Strijak, a deputy director at Counterpoint Research, said, "Foldable phones are still priced too high to appeal to the masses," and "most consumers are not well aware of the uses of foldable phones and still have concerns about the durability and lifespan of the devices."
Nevertheless, competition for foldable phones is intensifying in Europe. Companies like Motorola, Google, and Xiaomi are growing, leading to a decline in Samsung's market share from 56% in the first quarter last year to 41% in the first quarter this year.
Samsung is set to release the 'Galaxy Z Flip and Fold 7' next month.