European smartphone companies are hoping to snatch a slice of Apple’s market share in the region, as Donald Trump’s tariffs threaten to disrupt the iPhone-maker’s supply chain.
Earlier this week, the US president’s unprecedented package of “reciprocal” import taxes sent stock markets around the world into a tailspin. After days of speculation, Trump rolled back most trading partners’ tariffs to 10% — but raised China’s to 125%.
That presents a huge problem for Apple, which builds its products in China. Investment banking firm UBS estimates iPhone prices could jump around 30% on average as the taxes start to bite. But as Apple faces the crisis, much smaller phone-makers in Europe have spotted an opportunity.
Fairphone, the Amsterdam-based “ethical phone” manufacturer, has raised more than $100m since it was founded just over a decade ago. CEO Raymond van Eck says Trump’s tariffs are unlikely to impact his company’s production line.
“We’ve always taken a different approach to building phones, working closely with our suppliers to improve conditions and increase transparency across the supply chain,” he tells Sifted, describing the current situation as “an opportunity to engage, not avoid”.
“If the current geopolitical climate encourages people to think more critically about how their electronics are made […] we see it as a positive step toward a more transparent and fair tech industry,” says van Eck.
Emporia, an Austrian company specialising in easy-to-use smartphones, is banking on Trump’s hostile attitude towards both Europe and China strengthening ties between them.
“The further Trump pushes his tariff war, the closer Europe and China will come together. So I would say Trump is working in our favour,” says Emporia CEO Eveline Pupeter.
Like Apple, Emporia’s phones are manufactured in China. But Trump’s tariffs have made the EU a relatively more attractive destination for Chinese goods. While smaller companies like Emporia tally sales in the low millions compared to Apple’s billions, the recent disruption presents an opportunity for growth.
Startups building a presence in Europe’s small but growing smartphone market include Nothing, the London-based iPhone challenger, as well as sustainable phone-maker Shift and privacy-focused Volla, both based in Germany.
Pupeter tells Sifted a number of network operators and hardware providers have approached Emporia in recent days, as they increasingly want “a European brand in their portfolio”.
“Trump and the US are in the process of gambling away all trust […] This could well be a disruptive process.”
Nothing, Shift and Volla did not respond to requests for comment.
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