Apple has just opened an online store in Vietnam, another sign of the growing importance of emerging markets for the iPhone maker, according to CNN.
Apple's opening of an online store in Vietnam, as well as the inauguration of its first physical store in India, means that consumers in Southeast Asia can now directly purchase any product from the tech giant.
CNN noted that markets like Vietnam, India, and Indonesia are becoming increasingly important to Apple as growth in developed markets like China slows down, forcing the company to focus on places where it was previously less active.
Apple launched its online store in Vietnam on May 16. (Photo: Du Lam)
For decades, China has been at the center of Apple's rise, serving as the backbone for both production and consumption. However, CEO Tim Cook is now looking to other regions. He called developing countries a "bright spot" in the company's earnings report. Recently, he said he was "particularly pleased" with the results in these markets during the first three months of the year.
According to analyst Dan Ives, slowing global growth puts added pressure on Apple to pursue emerging markets. He predicts that in the coming years, Indonesia, Malaysia, and India will account for a larger "piece of the pie."
Speaking to CNN, he stated that launching online sales in a country typically precedes the arrival of a physical store. This holds very true for India. Meanwhile, according to analyst Chiew Le Xuan, the launch of the Apple Store Online in Vietnam on May 16 shows the company is further consolidating its presence in emerging countries. He revealed that the tech giant has actively expanded in the region in recent months, strengthening its distribution and authorized dealer networks.
Apple has ample room for growth. CEO Cook called this region a "great opportunity" for the company.
The iPhone maker joins the list of global enterprises optimistic about Southeast Asia, where investment is pouring in for manufacturing. The user base is also promising, as the number of middle-class and affluent households in Vietnam, Indonesia, the Philippines, etc., is expected to grow by about 5% annually until 2030, according to the consulting firm Boston Consulting Group. They refer to this demographic as the "next mega-market."
Expert Ives considers the appeal of the Southeast Asian middle class to be a "golden opportunity for Apple."
However, there are still many challenges ahead. Premium brands like Apple struggle in emerging markets due to product pricing. iPhones – priced between $470 and $1,100 – are considered expensive for users in developing Southeast Asian countries, where consumers primarily purchase smartphones under $200.
According to Chiew, Apple's absence is most evident every time a new iPhone is launched. Buyers from Vietnam and Cambodia often fly to Singapore and Malaysia to purchase the devices and bring them back to resell. This could change in the coming years, especially as Apple continues to intensify its efforts here.
Ives predicts Apple will continue to expand its ecosystem in emerging markets through various pricing strategies. Once users switch to iOS, they tend to stick with it and become loyal customers. This was a core part of Apple's success in China and could be replicated in India, Indonesia, and Vietnam.
Still, Apple will face hurdles in Southeast Asia, where some countries impose strict requirements on foreign businesses. For example, in Indonesia, at least 35% of components in electronics sold domestically must be locally manufactured. A similar regulation prevented Apple from opening a store in India until the policy was relaxed in 2019.
And even as consumers become increasingly affluent, Apple's product prices remain high in many emerging markets. Ives believes that growth here will be very tough.
Source: https://vietnamnet.vn/cnn-viet-nam-ngay-cang-quan-trong-voi-apple-2145417.html