Vietnamese customers flock to buy iPhones after price reduction.

iPhone sales at retailers surged during two low-demand months. The market was boosted by price reductions from Apple.

The iPhone 15 is attracting customers after its price reduction. Photo: PA .

Apple's price cuts in early March quickly paid off. Many products saw a surge in sales thanks to the stimulus policy. The iPhone 13, 14, and 15 models sold well after being lowered to a more accessible price segment.

The strategy continues to have repercussions in the secondary market, as Apple phones no longer hold their value. Conversely, Android manufacturers face significant barriers to accessing the high-end segment as Apple "blocks" them.

Sales increased 2.5 times after the price reduction.

In early March, Apple significantly reduced prices for many iPhone models sold in Vietnam. The iPhone 14 and iPhone 15 saw the biggest price drops, ranging from 2.5 to 3 million VND, equivalent to nearly 20% of the device's value. This immediately lowered the price of these two models by one segment, making them more accessible to consumers.

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

The iPhone 15 offers significantly better performance for the price after its price reduction to around 15 million VND. Photo: PA.

In contrast to the sluggish sales of the newly launched models, the two older iPhones are performing much better. Speaking to Tri Thức - Znews, Mr. Nguyen Lac Huy, a representative of the retailer CellphoneS, said that the iPhone 14 and 15 saw a 2.5-fold increase in sales compared to before the price reduction. “Their contribution to sales also reached approximately 12% of Apple's entire mobile product line. Previously, they were at 6%,” Mr. Huy added.

Mr. Phan Tran Thanh, Deputy Director of the Apple product line atFPT Shop, also confirmed a similar trend. At the second largest mobile retail chain in Vietnam, the models experiencing good growth are the iPhone 13 and 14, currently priced at 11-13 million VND.

According to a report by market research firm Canalys, iPhone shipments in Vietnam increased by 3% year-on-year. This is a significant achievement for a company that primarily focuses on the high-end segment, with average prices considerably higher than its competitors.

The price to pay

Apple is known for its streamlined product catalog, with a much lower number of models sold simultaneously compared to Android manufacturers. However, this is gradually becoming less true, especially in developing markets like Vietnam.

Currently, Apple Stores sell seven iPhone models, including five 16-inch models and the iPhone 15/15 Plus. Retailers also offer three additional models: the iPhone 14/14 Plus and the iPhone 13. With ten models ranging in price from 11 to 33 million VND, the company's pricing strategy must be synchronized to avoid overlapping.

However, this approach is not without its drawbacks. The recent price reduction on older iPhone models occurred a week before the 16e model went on sale. The newest iPhone model, which already lacked feature advantages, now suffers from a price disadvantage. Compared to the cheaper iPhone 15, this device only excels in specifications; otherwise, it is inferior to its older sibling. Sales of the iPhone 16e have been sluggish since its launch, and the price reduction is unlikely to boost demand.

Older Apple flagship models go head-to-head with newer mid-range Android phones. Photo: CPS.

On the other hand, the company's price reductions on iPhones and extended product lifecycles also disadvantage early buyers. The iPhone 15, which launched in 2023 at 24 million VND, is now priced at 15 million VND. After 1.5 years, the price has dropped by nearly 10 million VND. While its resale value remains much better than many expensive Android models, the price drops are becoming increasingly significant.

This could change customer purchasing behavior, causing long-term damage to the company. Previously, the depreciation of Android flagships by tens of millions of VND after just a few months somewhat eroded consumer confidence in the brand and its ability to retain value. Instead of buying immediately upon release, they waited for price adjustments.

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

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

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