Samsung and LG might suffer sales decline in the US, says analyst


Plenty of campaign promises were made in this year's election on both sides. And now that Donald Trump was officially elected, people started asking themselves if he will deliver on everything he talked about during his campaign.

One of the subjects he discussed is higher tariffs on foreign tech products. And this seems to be a major concern for Samsung and LG right now. Both companies are based in South Korea, but hold a good portion of the US smartphone market (26% for Samsung and 13% for LG).

Park Hyoung-woo, an analyst at SK Securities, commented that “if the US government increases tariffs on tech products, smartphones could be hit hard among others. It seems unavoidable for Samsung and LG to suffer sales losses”. If the analyst is correct and Trump does increase tariffs for foreign tech, this would be a big hit on both South Korean companies. They will either have to make their smartphones more expensive to make up for the higher tariffs, or sacrifice some of their profits to keep competitive prices.

And while the two South Korean companies are the ones that will probably take the hardest punch, such events would affect other foreign companies too. The China-based Xiaomi would be a good example, as the company has been very outspoken about its attempts to enter the US market race, but it might prove quite difficult if tariffs become higher.

Another Chinese company that could also have some difficulties would be Huawei, since it mentioned a Mate 9 release in the US, which would be its first push in that market. It was rumored that the release will be happening in January, but nothing is officially confirmed yet.

Either way, such circumstances would benefit US-based manufacturers, such as Google, Apple and Microsoft. So, we might see some shifts in the US market shares next year, once Trump enters the Oval Office.

source: TheInvestor via SamMobile

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12 Comments

1. wando77

Posts: 1168; Member since: Aug 23, 2012

Not really fair since all Apple manufacturing is done in China and that Apple pay feck all tax. More bull policies from that idiot Trump

2. HugoBarraCyanogenmod

Posts: 1412; Member since: Jul 06, 2014

People like you are the reason I voted Trump

10. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

So being more stupid then him, is why you voted Trump? Yea, make sure when crap goes down, you don't lie and claim you voted for Hilary. Voting for Trump makes you more stupid. Appple hides 75% of the cash overseas to not pay taxes on it. Corps never want to pay their "fair" share. Which puts the burden on the rest of us. They make far more money, thus should pay more. Yes I agree with Tim Cook when he says that tax percentages need to be changed on tech companies However, these companies shouldn't be getting breaks for sending our jobs to China ot anywhere else. if all those jobs were here, companies would actually save money, becaus ethey wouldnt have to pay import taxes, which on electronics is very high. Sure they would have to pay out higher wages and yes being more safe is more expensive, but again they would save the money with all the tax benefits. The thing is they dont want to pay and neither does Trump. Who hasnt paid taxes in 20 years and is why he is the only Presidential candidate not to show his tax returns. Yet he ragged Obama about his birth certificate. Trump and a condescending hypocritical douche-bag who deserves to die, and that includes all the people who voted for him No I am not saying you have to vote for Hilary either. Sheer were 2 other candidates. Voting for a moron, makes you a moron. Voting for a racist pig, makes you a racist pig. Wando77 didnt make you vote for Trump. You voted out of your won ignorance and stupidity. He is a cheating, hypocritical, bigot, who fondles woman. If Obama would gave said, that my daughter is so fine, that if she wasn't my daughter I'd be sleeping with her, is of poor taste and of Obama would have said such would have been called a pervert and be labelled as disgusting. But its OK for this POS too do it. Oh and he also banged a 13 year old. Which by law makes him a rapist. But none of this was as bad as 30,000 personal emails that contained no confidential work related info. Yeah, stand up and accept your own ignorance and stupidity. The reason you vote for Trump is because you're stupid and ignorant and because you are obviously a woman hating and devout racist.

11. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Celebrities dont make good politicians. See what reagan did? Or were you even old enough to understand what he did? But you are old enough to understand Arnold Schwarten-Cheater. Took the richest State in the Union, a State full of billionaires and billionaire company's and totally ran out of money to a point they could even pay the State's electric bill. But you think you made a good vote? HAH! You shouldn't even have disclosed you voted for Trump. Ever seen the show, Biggest Loser? That would be you and all who voted for Trump!

3. plasteek

Posts: 265; Member since: Jun 07, 2015

If it can help LG to bring V20 to Europe so they can make money and take mine lol!

5. LanjaKodaka

Posts: 219; Member since: Sep 27, 2016

Donald trump sucks to his core.

6. HugoBarraCyanogenmod

Posts: 1412; Member since: Jul 06, 2014

Sorry Mr. My feelings matter, no one care about your feelings

7. bolosantosi

Posts: 103; Member since: Sep 20, 2016

Obviously you do

8. LanjaKodaka

Posts: 219; Member since: Sep 27, 2016

You meant ironically ?

9. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Samsung should just by LG. LG is a waste of space. Combine and you don't have to compete with each other. Combine and Samsung moves to 350M plus phones sold per year. Combine LG's OLED tech with yoru own, and see how their can improve yours. Get rid of ugly LG phones and make the Samsung V30, with a bezeless display. Why are you gusy talking politics in a tech article?

12. lpratas

Posts: 398; Member since: Nov 09, 2011

Samsung have near 30% of the US smartphones market.

13. lpratas

Posts: 398; Member since: Nov 09, 2011

In the Q1 of this year Samsung had a market share of 28,8% and Apple with 23% behind.

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