Expert: Vietnam is important to Apple

On April 15, Apple CEO Tim Cook arrived in Hanoi, Vietnam as the US technology giant sought to boost sales in new markets.

Expert: Vietnam is important to Apple Picture 1

Here, on April 15 - 16, he will meet users, developers and content creators. On X (formerly Twitter), Apple CEO posted a photo with singer My Linh, reviewer Duy Tham and sitting drinking egg coffee next to Bo Ho.

Tim Cook's visit to Vietnam took place during a challenging period for Apple. Data released by International Data Corporation (IDC) on April 15 showed that in the first quarter, global iPhone shipments decreased by 10% compared to the same period last year.

Apple is facing fierce competition in the high-end smartphone market, especially in key markets like China.

According to IDC, Apple quietly rose to the position of the third largest smartphone supplier in Vietnam by shipment volume, behind only Oppo and Samsung. In addition, Vietnam has also become an important production base when the "Cupertino giant" seeks to diversify product assembly outside of China.

Apple's dependence on China for its products has left it struggling in 2022 due to the country's strict COVID-19 prevention measures and worker unrest at its assembly plant. Foxconn's flagship iPhone assembly disrupts production. Foxconn is the main assembler for Apple's iPhone.

In December last year, Nikkei reported that Apple was moving some of its key iPad technical resources to Vietnam. Currently, Vietnam is said to be involved in the development and production of Macbooks, iPads and Apple Watches.

'Vietnam is increasingly important to Apple, not only because of its growing fan base here but also because the industry is hedging risks by diversifying production beyond China. That includes key locations like Vietnam, where Samsung has long had a presence in the Northern region," Bryan Ma, Vice President of Client Device Research at IDC, told CNBC.

" Apple's diversification efforts also include devices such as laptops, where its contract manufacturers such as Quanta and Foxconn have invested."

India has also emerged as an important iPhone production center.

In an article last week, Bloomberg said that Apple currently has one in every seven iPhones shipped that is made in India. Apple begins assembling its latest iPhone line in India in 2022. That starts with the iPhone 14 series. India is also a huge consumer market for Apple.

David Pac

Update 16 April 2024