Apple is fair in 'upgrading' the Vietnamese market to the top group

CEO Tim Cook will come to Vietnam in 2024, meet with many artists andeducational institutions. Photo: Viet Linh .

Vietnamese users have a special fondness for the iPhone. According to a former manager of the company, domestic customers not only see it as a phone, but also as a “jewelry”. Users always prioritize the highest-end iPhone version, instead of choosing the cheaper option like other countries.

However, in the long run, hand-carried products have dominated the market. The difference in sales time and high prices have caused genuine products to lose out. Meanwhile, revenue from iPhones imported through “unofficial channels” has been recorded in initial markets such as Singapore, Hong Kong or the US.

Since 2020, Apple has adjusted its sales policy, eliminating hand-carried products. Since then, the company has recorded the correct amount of domestically consumed devices. Vietnamese customers receive full service and fair treatment from the manufacturer.

Apple's achievements in Vietnam

Speaking with Tri Thuc - ZNews , Mr. VD, senior manager of a top smartphone brand in Vietnam, said that manufacturers often use GDP per capita to determine the main segment. With an income of about 4,000 USD /year, the company believes that the majority of domestic customers are in the mid-range segment, the flagship market share is relatively narrow.

“The iPhone is a unique case, hard to explain,” Mr. D. added. According to him, Apple phones are especially popular in Vietnam. Despite their high price compared to the average income, they are still best-selling items. Mr. D. estimated that in the segment above 20 million VND, 9 out of 10 phones sold are iPhones.

Apple's market share in Vietnam in 2018 (before) and 2025 (after). Photo: Counterpoint Research.

Market research firms report the same thing. According to Counterpoint Research , Apple had only 5% market share in 2018. Now the company is regularly in the top 3, sharing about 18%, equivalent to Xiaomi, Oppo, just below Samsung.

The company's rise comes at a time when the market is fiercely competitive. Both Samsung and Oppo have declined. Only Xiaomi and Apple have grown well during the same period.

In July 2022, in the quarterly report, CEO Tim Cook mentioned Vietnam as a typical example of the company's growth, at a double-digit rate compared to the same period last year. Apple's leader put the domestic market in the "emerging" group with Brazil, Indonesia, and India, which have many times larger populations.

Meanwhile, according to information revealed by a large mobile retail system in Hanoi and Ho Chi Minh City, Apple's revenue in 2021 in the Vietnamese market was 1.2 billion USD (about 28,000 billion VND ). The target set by Apple is 2 billion USD (about 46,000 billion VND ) for the domestic market.

Mr. Doan Van Hieu Em, CEO of Mobile World system, aims to sell 1 billion USD worth of Apple products by 2027. If this achievement is achieved, they will be Apple's largest wholesale partner in Southeast Asia.

“Not only recently, in fact, Vietnam has created stable revenue growth for Apple over the years and has become their key market in Southeast Asia and Asia. Surely Vietnam will soon rise in priority and receive more investment from Apple,” said a representative of FPT Shop.

Apple's strategy

With domestic customer love already in place, Apple still has a lot of work to do to achieve a nearly fourfold market share increase in seven years.

First, the company must thoroughly handle hand-carried products, which are tax-evading goods and disrupt the market. Since 2019, new iPhones have started to be sold earlier, approaching the time in major markets. Recently, according to information from retailers, the company has asked its partners to prepare for the scenario of iPhone 17 being sold in Vietnam at the same time as the first international sale.

The selling price of genuine products is also adjusted. Authorized dealers are allowed to import products at high discounts. Thanks to that, customers can buy at cheaper prices. At some points, iPhones in Vietnam are cheaper than in the US and Singapore.

The company also adjusted its after-sales policy, requiring invoices to guarantee devices in Vietnam. These things gradually suffocated the type of iPhones imported through unofficial channels, purifying the market.

Customers at the Apple Store on the day of the iPhone 16 launch. Photo: Apple.

In addition, Apple is also clearly present, strengthening its localization strategy. The company has extended the sales period of old models such as iPhone XR, 11, 12 to 4-5 years. Their prices at the end of their life cycle are 9-10 million VND, which is easily accessible to domestic customers, helping Apple increase its revenue significantly.

The company's online services are also gradually being fully provided. The Apple online store will open in mid-2023. The Siri voice assistant will officially support Vietnamese in April. The manufacturer promises to update the Apple Intelligence AI suite for domestic customers in the near future.

CEO Tim Cook also visited Vietnam in mid-2024, meeting with singers, creators, and educational institutions, as a way to show his commitment to the important areas that Apple wants to promote. Apple also has many programs in conjunction with domestic artists, promoting culture, such as MVs filmed entirely on iPhone.

Source: https://znews.vn/apple-cong-bang-khi-nang-hang-thi-truong-viet-nam-len-nhom-dau-post1558483.html