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Trouble in other markets may prompt Apple to consider Vietnam

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While iPhone sales falling in many markets, leading to a sharp drop in Apple share prices, sales have continued to go well in Vietnam.

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iPhone sales have fallen in many markets


Apple is now seeking a leader for its sales and business development division in Vietnam. In 2016, it looked for a distribution director in Vietnam. On Apple’s website, recruitment notices sometimes appear for software and hardware engineers for Hanoi and HCM City offices.

Apple still doesn’t have an Apple Store in Vietnam, but its products are sold through AARs (Apple authorized reseller) and APRs (Apple premium reseller). In addition, it has joined hands with large distributors.

Apple only has two Apple Stores in Southeast Asia, one in Singapore which opened in 2017, and the other in Thailand in 2018. quoted a former regional director of Apple as saying that the Vietnamese market is still far from able to satisfy Apple’s requirements. 

“They (Apple) would ‘lighten’ the Vietnamese market first through AARs and APRs and clear unofficial imports. Later, they would spend money on billboards at shopping malls before opening an Apple Store,” he explained. 

Private shops stopped using Apple’s logo after they received warning from Apple’s representative in Vietnam about intellectual property infringement two years ago.

However, Apple’s recent moves show the giant has begun paying attention to the Vietnamese market. In late 2015, Apple Vietnam received an operation license which showed the office of the company is in HCM City.

Vietnamese analysts believe that Apple may consider accelerating its plan because of the rapid growth of iPhone sales in the market. The sales are decreasing in many markets, while iPhones are still selling well in Vietnam.

The selling prices of iPhones vary among different countries. iPhone Xs Max 256 GB sells at $1,249 in the US and $1,600 in China. In Vietnam, the price quoted by authorized resellers is VND38 million, or $1,700.

China and India are the two most problematic markets for Apple. In China, consumers have turned their back on iPhones because of the US-China trade war. In India, with th high price, iPhone is considered a luxury product.

The sales decline in the two markets may prompt Apple to switch its focus to Southeast Asia, according to analysts.

In a recent letter to shareholders, Apple admitted it is facing difficulties, but still puts high hope on the US, Canadian, European and South Korean markets.  Apple also expects good sales in Mexico, Poland, Malaysia and Vietnam.

Source: VietNamNet

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