Apple earns 5,000 billion VND in Vietnam every month

Domestic customers have been spending more and more money to buy iPhones in recent years. The amount reached nearly 5,000 billion VND even in the low month.

In 2023, CEO Tim Cook mentioned Vietnam as one of the company's best growth markets globally, with a positive 3-digit growth rate every year. This trend has slowed down somewhat, but the amount of money Vietnamese people spend on iPhones is still very impressive.

Positioned in the high-end segment, with a high average price per product, Apple phones dominate in terms of the amount of money earned for manufacturers. Behind Samsung and Oppo in terms of market share, Apple still makes the most money in Vietnam.

Market share dominance

According to a report from a major market research firm, Apple's phone revenue in Vietnam was around VND4,700 billion in July. This figure is equivalent to more than 45% of the market share. Meanwhile, the company's sales volume only accounted for 20%.

In fact, July is the low point of the year for Apple sales. Most users have a wait-and-see mentality as the new iPhone launch approaches. Meanwhile, the 16 series has been out for almost a year.

In return, the reasonable pricing policy and the ever-expanding product range help Apple have more sustainable revenue in Vietnam, instead of just focusing on the "launch season". Based on the revenue ratio over the number of devices sold, the average price of each Apple device sold in Vietnam is over 20 million VND. This number is also much higher than that of Android competitors, who mainly sell smartphones for 4-8 million VND.

In the low month, Apple still earned nearly 5,000 billion VND from selling iPhones in Vietnam. Photo: Phuong Lam.

Compared to the same period last year, Apple was also the best growing company in Vietnam in July. They sold nearly 40% more devices. At the same time, revenue increased by 45%. This happened when competitors tended to decline or did not change much.

In recent times, domestic dealers and online channels have had great competition in the prices of iPhone 16 models. In particular, the Pro/Pro Max model has dropped deeply to below 30 million VND, which is an opportunity for users to buy cheap products. The price currently being sold in Vietnam is also among the lowest in the world .

The iPhone 14 and 15 series are still sold by Apple in Vietnam. The products have dropped to the 10-15 million VND segment, becoming a major competitor to mid-range Android devices from Samsung and Oppo. Although they do not contribute to the majority of revenue, these models create a new customer base to join the Apple ecosystem. In addition, they also make it impossible for hand-carried, unofficial iPhones to survive in Vietnam.

The 'golden goose' of the agency

High value and large sales per model are what only iPhone can do in Vietnam. Android companies sell good low-cost phones, but flagship lines are running out of steam. In the segment above 20 million VND, Samsung, Xiaomi, Oppo, Honor share less than 10% of the market share.

In the context of fierce competition, iPhone becomes an opportunity for domestic dealers to increase revenue.

The second quarter financial reports of major distributors and retailers in Vietnam also show that Apple is the leading short-term “creditor” of these businesses. For example, MWG owes its partners VND933 billion , a sharp increase compared to the VND288 billion recorded at the end of last year.

Apple dominates online phone sales. Photo: Metric.

Similarly, inFPT Retail's financial report, Apple is also among the top creditors with 434 billion VND . With Digiworld, this distributor also owes Apple more than 470 billion VND in short-term debt.

This debt mainly comes from importing goods first and paying later. The amount of up to thousands of billions of VND shows that the proportion of Apple's revenue with domestic agents is very large. Talking to Tri Thuc - Znews , Mr. Nguyen Lac Huy, representative of the CellphoneS system, said that Apple accounts for 60% of sales in this chain. "The characteristics of customers in the system are mainly young people, with good income, so they are willing to spend. The general proportion of iPhone in the whole industry is currently at 30-40%," Mr. Huy said.

Sharing the same opinion, representatives of FPT Shop and 24h Store also said that Apple products contribute a significant amount of revenue to dealers.

On the online channel, the first half of the year report of market research company Metric.vn shows that Apple is the brand with the highest revenue on all Vietnamese e-commerce platforms. The company brought Shopee and TikTok Shop more than 4,000 billion VND , far surpassing Samsung in second place with 988 billion VND . The iPhone 16 Pro Max models are also the top products in online revenue since their launch.

Source: https://znews.vn/apple-thu-5000-ty-dong-o-viet-nam-moi-thang-post1581010.html