According to analysts, Apple CEO Tim Cook's trip shows that Vietnam is playing an increasingly important role in Apple's strategy.
On April 15-16, Tim Cook visited Vietnam for the first time and had six meetings with government officials, software developers, content creators and artists.
At the meeting with Prime Minister Pham Minh Chinh, Apple CEO mentioned his desire to promote cooperation and high-quality investment in Vietnam, committed to purchasing more components produced domestically by partners, and at the same time contribute to the field of innovation and increase spending for suppliers in Vietnam.
According to analysts, the trip of Apple leaders to Vietnam has many long-term implications, including promoting the expansion of the supply chain, as well as expanding the market for Apple products.
Apple CEO Tim Cook at Hoan Kiem Lake on April 15. Photo: Tuan Hung
Vietnam is important in Apple's supply chain
Responding to VnExpress , analyst Ivan Lam of market research firm Counterpoint Research assessed that this is a move showing that Apple will continue to promote the diversification of its production ecosystem and supply chain.
"Vietnam has always been an important part of Apple's supply chain," said Mr. Lam.
According to this expert, Vietnam has many similarities with India, and has a large foundation from Samsung's supply chain. In addition, Vietnam has advantages in labor costs and favorable, stable policies, helping to quickly expand production.
In recent times, Vietnam has emerged as one of Apple's most important manufacturing hubs. According to Apple's 2022 supply chain statistics, Vietnam is home to 27 manufacturing facilities of Apple partners, including many big names such as Samsung, LG, Lens. In addition, the company's major manufacturing partners such as Foxconn, Luxshare, Goertek are also assembling a series of products such as AirPods headphones, HomePod speakers, watches in Vietnam, expected to expand to MacBooks and iPads.
"Expanding operations in Vietnam is a way for Apple to hedge supply chain risks," according to CNBC .
Apple CEO Tim Cook met with content creators on the morning of April 15. Photo: Tuan Hung
With the goal of increasing service revenue, Apple's supply chain now includes product and application developers. One of the highlights of the Apple CEO's visit was meeting with content creators. He also mentioned his desire to promote bringing Vietnamese culture to the world, including music and cinema, through platforms like Apple Music.
Commenting on this move, Ms. Quyen Pham, Vice President and General Secretary of the Vietnam Digital Content Creation Alliance (DCCA), said that this is an equal opportunity for both sides.
"The platforms themselves need high-quality content to serve their customers. Meanwhile, publishing on large cross-border platforms like Apple's will create opportunities for Vietnamese content creators to reach a global audience and share in the revenue," said Ms. Quyen.
According to Apple’s report, the company has spent nearly VND400 trillion ($16 billion) through its supply chain since 2019, doubling its annual spending in Vietnam during the same period. The company’s operations now support more than 200,000 jobs through direct employment, supply chain, and the app economy.
Potential market for Apple products
On the X account, each activity in Vietnam is shared by Tim Cook, in which he cleverly incorporates how Apple device features have supported developers and content creators. These activities may be aimed at increasing the presence of the company's products in Vietnam.
CNBC reported that Tim Cook's visit took place in the context of global iPhone sales in the first quarter falling 10% compared to the same period last year, while the company faced competition in some key markets, such as China.
"CEO Tim Cook has visited Vietnam as the US tech giant seeks to boost sales in new markets," the site wrote.
According to IDC analyst Bryan Ma, one of the reasons Vietnam is important to Apple is “because of the growing fan base here.” According to the unit’s market report, Apple is currently the third-largest phone company in Vietnam by sales, after Samsung and Oppo.
In financial reporting meetings, Tim Cook also mentioned Vietnam as one of the examples of rapid growth. In the third quarter of 2023, the Apple CEO said that he had achieved record revenue in Vietnam, and opened an online store to sell devices directly to users. In fact, according to statistics from domestic retail chains, sales on the first day of sale of iPhone 14 and iPhone 15 both reached over one trillion VND.
Despite facing many long-term opportunities after Tim Cook's trip, analyst Ivan Lam said that Vietnam also needs to focus on investing, developing and continuously improving infrastructure to increase production efficiency, thereby increasing investment attraction from companies, as well as aiming to become the manufacturing center of Southeast Asia.
Luu Quy - Vnexpress.net
Comment (0)