Selling up to 2 million iPhones/year, Apple has a reason to put Vietnam in first place

The strategy of expanding the supply chain and launching iPhone sales early shows that Vietnam is one of the important markets for Apple.

iPhone 16 Pro Max. Photo: Phuong Lam .

Information from some dealers shows that it is possible that the iPhone 17 series will be available for sale in Vietnam as early as other markets in group 1. If correct, users can buy genuine iPhone 17 on the same day as in the US or Singapore, instead of waiting a week like the iPhone 16 series.

In recent years, Apple has made many moves to expand its operations in Vietnam such as opening online stores, collaborating with Vietnamese artists for marketing campaigns, and strengthening its supply chain...

According to analysts, the above plans show that Vietnam is currently one of the important markets for Apple, not only in terms of production but also in terms of revenue potential and strengthening brand image.

Apple sees revenue potential in Vietnam

“For Apple, Vietnam is a strategically important market due to two main factors: the increasing demand for high-end devices among users, in addition to its important role in the supply chain diversification plan,” analyst Le Xuan Chiew from market research firm Canalys told Tri Thuc – Znews .

According to Canalys estimates, iPhone production in Vietnam will increase every year, reaching 2 million units in 2024. In terms of market share, Apple is continuously in the top 4, even ranking 3rd in 2024 and the first quarter of 2025 (market share of 20% and 18% respectively).

“iPhone sales in Vietnam are driven by strategic investment channels and the strength of the Apple brand, factors that are highly appreciated by Vietnamese users,” Mr. Chiew emphasized.

Tim Cook, CEO of Apple, during an activity in Vietnam in April 2024. Photo: Tuan Anh .

According to analysts, Vietnam’s middle class is growing rapidly, driving demand for high-end smartphones. Domestic consumers also see the iPhone as a status symbol, strengthening brand loyalty and increasing the average selling price (ASP).

For example, the iPhone 16e only accounts for about 3% of total iPhone sales in Vietnam (lower than the global average). With the iPhone 16 Pro Max, the above rate is 45%.

These factors show that the high-end iPhone has great revenue potential. Apple needs to synchronize some factors in Vietnam similar to major markets to maintain the growth momentum, such as the iPhone launch date.

“By synchronizing the iPhone 17 launch date in Vietnam with the Group 1 markets, Apple can see that Vietnam's revenue potential is equivalent to the highest group, not just in terms of production value,” analyst Le Xuan Chiew added.

A strategy with two goals

According to statistics from Canalys , smartphone sales in the first quarter in Southeast Asia decreased by 3% compared to the same period last year. Apple ranked 7th in the region with a market share of 8%, only making it into the top 5 in 2 major markets including Vietnam (ranked 3rd, market share of 18%) and Thailand (ranked 4th, market share of 14%).

In comparison, Samsung ranked first in the region with a market share of 19% and sales of 4.3 million devices. The next positions in the top 5 belong to Xiaomi (17%), Transsion (15%), Oppo (14%) and Vivo (12%).

In Vietnam, the top 5 smartphone brands in the first quarter in terms of market share include Samsung (28%), Xiaomi (19%), Apple (18%), Oppo (17%) and Realme (6%). According to analyst Le Xuan Chiew, Vietnam is a notable market in 2025 as it benefits from the supply chain shift strategy.

“ Political stability, improved infrastructure and proximity to component suppliers make the country an attractive destination for long-term smartphone manufacturing investment,” said Chiew.

Market share of smartphone brands in 5 important Southeast Asian markets in the first quarter of 2025. Photo: Canalys .

In addition to economic advantages, the widespread deployment of 5G in Vietnam also creates conditions for smartphone manufacturers to expand their 5G device portfolio, reaching the rapidly growing middle class.

Diversifying the supply chain is also an important factor for Apple to expand its operations in Vietnam. Responding to Tri Thuc - Znews , a representative of Canalys commented that Apple wants to move some operations out of China to minimize geopolitical risks and US tariffs.

“Vietnam has emerged as a key link in the strategy, not only to set up assembly facilities but also to increase production of sophisticated components, stemming from accessory manufacturing,” said Mr. Chiew.

Not only that, the domestic market is maturing. Urban users are switching to high-end smartphones at a faster rate. Vietnam is now ranked among the emerging markets with the highest iPhone ASP growth.

“In general, Apple's operations in Vietnam now revolve not only around supply, but also comprehensive ecosystem growth, from production to product consumption by users.

With two purposes, this strategy helps improve Apple's 'standing firm' ability, while expanding the company's reach in high-growth markets," Canalys representative emphasized.

Source: https://znews.vn/ly-do-apple-danh-gia-cao-thi-truong-viet-nam-post1559082.html