According to a recent report of Apple, Vietnam has become the hottest market of this company. The revenue of Vietnam Apple market has tripled in the first half of 2014, especially the sales of iPhone has doubled.
Previously, Vietnam market hardly appeared in the annual report of Apple. In the quarterly meeting on April 23rd, Apple Board of Directors mentioned about the auspicious market in Vietnam, however. The revenue of Apple in Vietnam market has tripled in the first half of 2014, especially the sales of iPhone has doubled. The rate is expected to increase because the majority of Vietnamese consumers are generally young and interested in high technology, the number of people using Internet and mobile phone is rising, the middle class is forecasted to double by 2020.Vietnam technology companies have been growing dramatically. A typical example is Flappy Bird, a game app which has become popular as a mobile game listed in the world’s top downloads. The Vietnamese purchase iPhones in Apple store which cost half the per capita income according to the figure of 2012. Nonetheless, they believed that it was deserved. Mrs. Pham My Linh, a 23-year-old office worker, said that an iPhone had the price equal to her 2-month salary. But she still bought it because it made her more confident when going out.
A Crowded Apple Store in Vietnam - Source: Photo from baomoi.com
This demand is absolutely contrast to the current gloominess of Vietnam economy. Vietnam GDP has risen only 5.4 percent last year. According to economists, this figure is not corresponding to the rate of population growth and the potentiality of production in the country. Market researchers of smartphone businesses in Vietnam have stated that the demand of enhancing social status is the main reason for the increase of Apple sales. Simultaneously, programs of discounts, promotion, and payment assistance help consumers to afford luxury equipments which cost more than their average monthly income. The decrease in the consumption of public phones proved that Vietnamese people desire to move into smartphone market. Such things benefit not only Apple but also almost all tablet and smartphone manufacturers like Samsung or HTC.
An iPhone 5S of Apple - Source: Photo from techz.vn
According the figure released in January by the research firm GFK, smartphone accounted for 77 percent of phone sales in Vietnam last year. The number of sales increased by nearly 135% compared to that of the same period the last year. Meanwhile, the tablet sale tripled thanks to its 27 percent reduction in price.
Many large companies in the high-tech field are paying attention to Vietnam because the potential market here has not been fully exploited. The Vietnamese population is 90 millions, of which 15 millions has lived in 2 largest cities, Hanoi and Ho Chi Minh City, only 30 millions have access to the Internet, and two thirds is under 30 years old. If Vietnam market is effectively exploited in the right way, the profit brought to companies will be a huge number.
