Vietnamese customers flock to buy iPhone after price reduction

iPhone 15 attracts customers after price reduction. Photo: PA .

Apple's early March price cuts quickly paid off. Many products saw strong sales thanks to the stimulus policy. The iPhone 13, 14, and 15 models sold well when they were brought down to the more accessible segment.

The tactic still has consequences in the secondary market when Apple phones no longer hold their value. On the other hand, Android companies face a big barrier to access the high-end segment when Apple "blocks the door".

Sales increased 2.5 times after discount

In early March, Apple reduced prices for many iPhone models sold in Vietnam. Of these, the iPhone 14 and iPhone 15 had the deepest discounts, 2.5-3 million VND, equivalent to nearly 20% of the device's value. This immediately brought the two phone models down a segment level. Thereby, making them more accessible to users.

Currently, the iPhone 14 costs around VND 13 million and VND 15 million for the iPhone 15. This adjustment also creates a price gap for the iPhone 16e model (priced at VND 17 million), between the iPhone 15 and iPhone 16 in Apple's increasingly crowded device range.

The iPhone 15 has a much better performance/price ratio after being discounted to around 15 million VND. Photo: PA.

In contrast to the sluggish performance of the newly launched phone model, the two older iPhones have shown much better performance. Talking to Tri Thuc - Znews, Mr. Nguyen Lac Huy, representative of retailer CellphoneS, said that iPhone 14 and 15 sales increased 2.5 times compared to before the price reduction. "The contribution of the device also reached about 12% in the entire Apple mobile industry. Previously, it was at 6%," Mr. Huy added.

Mr. Phan Tran Thanh, Deputy Director of Apple products, FPT Shop system also confirmed the same trend. At the second largest mobile retail chain in Vietnam, the models with good growth are iPhone 13, 14, currently priced at 11-13 million VND.

According to a report by market research firm Canalys, the number of iPhones on shelves in Vietnam increased by 3% compared to the same period last year. This is a remarkable achievement for a company that mainly focuses on the high-end segment, with an average price significantly higher than its competitors.

The price to pay

Apple is famous for its lean product portfolio, with a much lower number of models sold at the same time than Android. However, this is no longer true, especially in developing markets like Vietnam.

Currently, Apple Store is selling 7 iPhone models including 5 models of the 16 series and iPhone 15/15 Plus. At the dealer, there are 3 more models for sale: iPhone 14/14 Plus and iPhone 13. With 10 models ranging in price from 11-33 million VND, the company's price calculation and adjustment steps must be synchronized to avoid overlapping.

However, this approach is not without its drawbacks. The recent price cuts on older iPhone models took place a week before the 16e was released. The latest iPhone model, which did not have a feature advantage, now suffers a price disadvantage. Compared to the cheaper iPhone 15, this device is only strong in terms of configuration, but is inferior to its predecessor in everything else. The iPhone 16e's revenue has been "sluggish" since its launch, and reducing the price is also difficult to stimulate demand.

Apple's old flagship models face off against new mid-range Android phones. Photo: CPS.

On the other hand, the company's reduction in iPhone prices and extension of the life cycle also causes disadvantages for early buyers. The iPhone 15 was priced at VND 24 million when it was launched in 2023, and is now VND 15 million. After 1.5 years, the product has decreased by nearly VND 10 million. The device's ability to retain its value is still better than many expensive Android lines, but the decrease is getting bigger.

This could change customer buying behavior, causing long-term damage to the company. Previously, the loss of tens of millions of dong in the price of Android flagships after a few months somewhat caused users to lose confidence in the brand and its ability to retain value. Instead of buying right away when it was first launched, they waited for adjustments.

Apple's policies are also gradually squeezing the space of Android brands. According to IDC's report, the average price of Android phones in Vietnam is increasing, led by Samsung at over 300 USD . This is also the segment that many manufacturers focus on with models Galaxy A, Reno, Vivo V or Xiaomi T.

However, they face competition from discounted older iPhones. Mid-range Android models have to compete with Apple's thousand-dollar flagship launched three years ago. The iPhone 13 and 14 still attract customers thanks to their brand advantages, stability, durability, many accessories, and ease of repair.

Source: https://znews.vn/khach-viet-do-xo-mua-iphone-sau-giam-gia-post1552174.html