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 Apple product.
CNN reports that markets like Vietnam, India, and Indonesia are becoming increasingly important to Apple as growth in developed markets like China slows, forcing the company to focus on areas where it previously performed less aggressively.
For decades, China has been central to Apple's rise, serving as the backbone for both manufacturing and consumption. However, CEO Tim Cook is now looking elsewhere. He has called developing countries a "bright spot" in the company's business 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 is putting additional pressure on Apple to keep up with emerging markets. He predicts that in the coming years, Indonesia, Malaysia, and India will capture a larger share of the market.
Speaking to CNN , he said that starting online sales in a country often happens before physical stores appear. This is very true in India. Meanwhile, according to analyst Chiew Le Xuan, the opening of the Apple Online Store in Vietnam on May 16th shows the company is further strengthening its presence in emerging countries. He revealed that the tech giant has been actively expanding in the region in recent months, strengthening its distribution and authorized dealer network.
Apple has ample room for growth. CEO Cook called this area a "great opportunity" for the company.
The iPhone manufacturer has joined the ranks of global businesses optimistic about Southeast Asia, where it is pouring investment into manufacturing. The user base is also promising, with the number of middle- and wealthy households in Vietnam, Indonesia, the Philippines, and other countries projected to increase by approximately 5% annually until 2030, according to Boston Consulting Group. They call this group the "next supermarket."
Expert Ives believes that the appeal of the Southeast Asian middle class is a "golden opportunity for Apple".
However, many challenges remain. Premium brands like Apple struggle in emerging markets due to product pricing. iPhones – priced from $470 to $1,100 – are considered expensive for consumers in developing Southeast Asian countries, where the majority of consumers purchase smartphones under $200.
According to Chiew, Apple's absence is most noticeable each time a new iPhone is launched. Buyers from Vietnam and Cambodia often fly to Singapore and Malaysia to purchase the devices and resell them. This could change in the coming years, especially as Apple continues to strengthen its efforts there.
Ives predicts Apple will continue to expand its ecosystem in emerging markets through different pricing strategies. Once users switch to iOS, they tend to stick with it and become loyal customers. This is a core part of Apple's success in China and could be replicated in India, Indonesia, and Vietnam.
However, Apple will face obstacles in Southeast Asia, where some countries impose strict requirements on foreign businesses. For example, in Indonesia, at least 35% of the components in electronics sold domestically must be domestically produced. A similar regulation prevented Apple from opening stores in India until the policy was relaxed in 2019.
And even though consumers are becoming wealthier, Apple products remain expensive in many emerging markets. Ives believes growth there will be difficult.
(According to CNN)
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