Apple goes online in Vietnam as emerging market focus grows

Just weeks since opening its first retail stores in India, Apple has a new emerging market in its sights, and this time it’s Vietnam where the company is preparing to launch an online retail store next week.

Online now, locals predict physical stores one day

Local reports cite local Apple resellers who now believe the company will follow up the online store launch with physical locations, though nothing has been announced to this effect.

This seems significant, given some Apple manufacturing partners have been investing in manufacturing facilities in Vietnam in addition to India.

Suppliers are opening for business

There are at least 21 Apple suppliers working in Vietnam, up from 11 last year.

The nation is also thought to host some HomePod , iPad, and Apple Watch production, while JP Morgan has previously said it expects 65% of AirPods will be made there by 2025.

Foxconn is thought to be preparing to manufacture new MacBooks there and is also building factories in Northern Vietnam.

In December, Counterpoint analysts predicted India, Vietnam, and Brazil could account for 30% of Apple’s manufacturing within the coming years.

The introduction of an online store to supplement these efforts echoes how Apple approached expanding its reach in India, and in China before that.

What Apple said

Promoting the store opening May 18, Apple SVP Retail, Deirdre O’Brien, said: “We are proud to have the opportunity to expand in Vietnam, as well as be extremely excited to be able to provide Apple’s outstanding care and support services to customers with the launch of the Apple Store online.”

You can learn more about the store here.

Is Vietnam’s potential Apple market ripe?

Apple has become more interested in the local market.

Last year it appointed Nguyen Thai Hai Van as the first Country Director of Apple Vietnam, and Apple CEO Tim Cook discussed sales in Vietnam as a highlight for the company’s recent results. The company has generated new revenue records there and in October experienced record iPhone sales in Vietnam.

There are good reasons to be optimistic about Apple in Vietnam.

The nation is digitally advanced, enjoying 40% annual internet economy growth, and its digital economy is expected to reach $50 billion by 2025. There are also 93.5 million smartphone users in the nation, which has a population of 100 million people.

This makes it an advanced digital economy, ripe for Apple’s products and services – and Apple is seeking those emerging markets as its traditional ones enter decline.

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