Will Vietnam soon have a physical Apple Store?

VietNamNet•02/06/2023

According to Bloomberg sources, Apple plans to open 15 new Apple Stores in Asia- Pacific , 5 in Europe and the Middle East, and 4 in the US and Canada between now and 2027. The iPhone manufacturer also plans to renovate or relocate 6 stores in Asia, 9 in Europe, and 13 in North America.

Apple wants to revitalize its 22-year-old retail operation. In recent years, Apple Stores have faced numerous challenges, including the Covid-19 pandemic, customer service issues, and employee protests. The company aims to build its brand in markets like India while providing a better experience in Europe and the US.

Apple wants to revitalize its Apple Store chain. (Photo: Bloomberg)

The most notable Apple Stores currently under discussion or development are three in India, one in Malaysia, and an upgraded store in the Opera shopping district (Paris, France). The company will also soon open a store at Battersea Power Station (London, UK), another in Miami (USA), and a flagship Apple Store at Jing'an Temple Plaza (Shanghai, China).

Some locations and timelines are still proposals or internal projects, meaning they may be postponed or canceled. However, many Apple Stores are already in development and Apple has agreed to lease land.

Apple currently has over 520 stores in 26 countries, about half of which are located in the US. Despite its high profitability, the Apple Store chain is primarily focused on brand building rather than sales. The majority of Apple's revenue comes from other channels such as e-commerce. Nevertheless, physical stores remain an important location for customers to purchase on official release days, receive technical support, and attend training sessions.

Retail operations are overseen by Deirdre O'Brien, one of Apple's longest-serving leaders. Meanwhile, store construction and maintenance are managed by Kristina Raspe, who oversees global facilities and real estate.

According to internal documents, Apple operates four types of retail stores: standard stores in shopping malls, Apple Store+ located in outdoor shopping malls or on the street, flagship stores in prime locations with unique designs, and flagship+, the largest and most expensive. Standard Apple Stores typically bring in over $40 million annually, while Apple Store+ contribute over $45 million. Flagship stores record revenue of over $75 million, while flagship+ stores exceed $100 million.

The focus of the expansion plan is the Asia- Pacific region, with 21 new or renovated locations by 2027. This market generated approximately $130 billion in revenue for Apple last year, accounting for nearly one-third of total revenue. Countries like India are emerging as key growth drivers. Apple opened its first two stores there in April.

Later this year, Apple will open a new store in Wenzhou City (China), upgrade its flagship store in Shanghai, and add two stores in South Korea. This will bring the total number of Apple Stores in Samsung's home country to seven.

In 2024, Apple plans to open its first store in Malaysia, located in Kuala Lumpur. In China, the company will open a new store at Jing An Temple Plaza; renovate its Pudong store in Shanghai; and possibly open its first store in Foshan.

Despite escalating US-China tensions, Apple remains dependent on the country of over a billion people – a major production base and a large consumer market. CEO Tim Cook praised the relationship between Apple and China during a business trip earlier this year.

In 2025, Apple is in discussions to open a third store in India and may relocate its Perth (Australia) store. The company may also open four new Apple Stores in China and renovate its Ginza (Japan) store.

Apple plans to open its fourth store in India in 2026. Additionally, the American tech giant is laying the groundwork for a new Apple Store in Yokohama, Japan, and relocating a store in Shibuya Marui. A fifth store in India is expected to open in 2027.

In Europe, Apple plans to open a store in Battersea (London, UK) in June. The company also intends to open a new Apple Store in Madrid (Spain) and relocate a store in Milton Keynes (UK). Europe contributed over $95 billion to Apple last year, accounting for about a quarter of its global revenue. The UK is the company's third-largest retail market with around 40 stores.

Overall, O'Brien wants to improve the experience at Apple stores. Complaints from both customers and employees have increased sharply recently, and the chain has also lost some of its appeal compared to before.

On May 18th, Apple launched its online Apple Store in Vietnam. Typically, online Apple Stores are seen as a "stepping stone" for physical Apple Stores in a market. For example, in India, the online Apple Store opened on September 23, 2020, while the physical store opened almost three years later. However, based on retail expansion plans provided by Bloomberg , it seems Vietnam will not yet be on the global Apple Store map, at least not until 2027.

(According to Bloomberg)

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