In response to a significant increase (125%) in tariffs imposed on China, US President Donald Trump has temporarily suspended similar measures for most other countries. However, given that China currently serves as the primary manufacturing base for iPhones—accounting for approximately 80% of production—and brands like Motorola and Google are also affected by these tariffs, the situation extends beyond Apple alone.

According to a survey conducted by Counterpoint Research (Source: Counterpoint Research), Apple can partially absorb increased tariff costs in the short term due to its higher profit margins; however, iPhone sales could be impacted if inflation rises or consumer confidence declines. India already supplied 20% of iPhones sold in America as early as 2024, and whether Apple will quickly expand production capacity there depends on several factors: the company’s commitment to diversification, the technical maturity level of Indian EMS partners (EMS：電子製造服務), investment capabilities and willingness, continuity of local government incentives, and negotiation skills between India and America.

Neil Shah, Vice President at Counterpoint Research, notes that India is currently viewed as a potential alternative manufacturing base for Apple. Brazil follows closely behind; however, expanding production in either location will require time. Brands are now entering an uncertain phase characterized by unpredictable tariff policies over the coming months or year.

Samsung primarily produces more than 60% of its smartphones in Vietnam and also operates two factories in India—one capable of quickly scaling capacity to mitigate the impact of tariffs. Motorola has long relied on Chinese ODM (Original Design Manufacturer) and EMS services but is expanding production locally in Brazil, where a previous tariff rate of only 10% from the US for Brazilian products allows it to further diversify risk by increasing local manufacturing.

While brands may have prepared early to shift operations quickly, large-scale relocation will still require significant time and capital investment with no immediate effects expected. Even if production locations are changed in the long term, new tariff pressures could emerge. Growing brands like Google Pixel might also consider moving manufacturing to India based on ODM/EMS partners’ capacity and technical capabilities.

Brands heavily dependent on Chinese production for America's prepaid card market will be most affected by these changes, presenting opportunities for other brands to expand their presence in the US.
Cnt: The text discusses how smartphone manufacturers are responding to increased tariffs imposed under President Trump. It highlights Apple’s ability to partially absorb costs due to higher profit margins but also notes potential impacts on sales if inflation rises or consumer confidence drops.

It mentions India as a possible alternative manufacturing base for iPhones, with factors like investment capabilities and government incentives playing crucial roles in expanding production there. The text further explores Samsung's existing infrastructure in Vietnam and India that could help mitigate tariff effects by shifting some of its operations to these locations.