News / Asia

Apple's Sales Boom in Communist Vietnam

A fruit vendor walks past an Apple store in Hanoi, Vietnam, April 24, 2014.
A fruit vendor walks past an Apple store in Hanoi, Vietnam, April 24, 2014.
Reuters
Communist Vietnam is suddenly Apple Inc.'s hottest market after its sales growth tripled in the first three months of the year, a rate five times faster than in India where it is spending heavily in a battle for market share.
 
Vietnam has barely received a mention from Apple executives in their regular briefings for financial analysts. But in a quarterly conference call on Wednesday, they were talking up the potential of the country.
 
Quarterly iPhone sales more than doubled and the strong growth appears likely to continue given Vietnam's predominantly young, tech-savvy population, rapid growth in internet and mobile phone use and a projected doubling of the middle class by 2020.
 
Vietnamese tech firms are fast cropping up, churning out apps such as Flappy Bird, which rose from obscurity to become one of the world's most downloaded mobile games.
 
Young Vietnamese thronging stores to buy iPhones worth up to half of their country's 2012 gross per-capita income say it's worth it.
 
“This cost more than two months' worth of my salary,” said officer worker Pham My Linh, 23, moments after agreeing a payment plan for an iPhone 5. “But I need it, to feel more confident when hanging out with friends and colleagues.”
 
The surge in demand comes against a backdrop of sluggish economic growth exacerbated by high levels of bad loans and business closures.
 
The economy grew 5.4 percent last year, a rate economists see as underwhelming given Vietnam's fast population growth and its retail and manufacturing potential.
 
But Vietnamese smartphone sellers say a hunger for higher social status is driving Apple's sales, helped by price cuts and payment plans that make it easier to digest handset prices that exceed the monthly income of most urbanites.

Trendier smartphones
 
The growing thirst for slick technology is not just benefiting Apple, but most firms offering tablets and smartphones, among them HTC and Samsung. Slower growth for standard mobile phones shows local appetite for upgrades to trendier handsets, industry experts say.
 
“I've seen no signs of an economic recession in this shop,” said the manager of a Hanoi branch of FPT, Vietnam's biggest listed tech company. “People buy $1,000 items with ease and a family buying three iPads isn't uncommon.”
 
According to data released in January by market research firm GfK, smartphones accounted for 77 percent of mobile sales in Vietnam last year and the number of units sold grew nearly 135 percent from a year earlier. Tablet sales soared 250 percent in 2013 as prices fell by close to 27 percent.
 
Many companies are looking closely at Vietnam, where 15 million people live in two main cities, only 30 million use the internet among a 90 million population and two thirds are under 30 years of age.
 
Apple isn't the only beneficiary of its own brand appeal.
 
Fake iPhones with a near-flawless appearance are on sale for just 2 million dong ($95).
 
“There are a lot of people out there who can't afford an iPhone but still want to look rich, which is why shops like mine can do well,” said shop owner Nguyen Duc Hai, 33.
 
“Why pay 10 times more for a real iPhone just to build a luxury image and show off?”

You May Like

Video Genome Initiative Urgently Works to Freeze DNA Before Species Go Extinct

Smithsonian senior research botanist Vicki Funk says ultimate goal is 'trying to get one-half of the diversity of plant life on Earth at the genus level in two years' More

Video Russia Accused of Abusing Interpol to Pursue Opponents

Report from member of British think tank says Russian extradition requests keep targets from traveling More

US Lawmakers Weigh Turkish Anti-terror Moves

Turkey’s two-pronged campaign against Islamic State militants, Kurdish PKK forces provokes mixed reactions on Capitol Hill More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Russia Accused of Abusing Interpol to Pursue Opponentsi
X
Henry Ridgwell
July 28, 2015 9:53 PM
A British pro-democracy group has accused Russia of abusing the global law enforcement agency Interpol by requesting the arrest and extradition of political opponents. A new report by the group notes such requests can mean the accused are unable to travel and are often unable to open bank accounts. VOA's Henry Ridgwell reports.
Video

Video Russia Accused of Abusing Interpol to Pursue Opponents

A British pro-democracy group has accused Russia of abusing the global law enforcement agency Interpol by requesting the arrest and extradition of political opponents. A new report by the group notes such requests can mean the accused are unable to travel and are often unable to open bank accounts. VOA's Henry Ridgwell reports.
Video

Video Genome Initiative Urgently Moves to Freeze DNA Before Species Go Extinct

Earth is in the midst of its sixth mass extinction. The last such event was caused by an asteroid 66 million years ago. It killed off the dinosaurs and practically everything else. So scientists are in a race against time to classify the estimated 11 million species alive today. So far only 2 million are described by science, and researchers are worried many will disappear before they even have a name. VOA’s Rosanne Skirble reports.
Video

Video Scientists: One-Dose Malaria Cure is Possible

Scientists have long been trying to develop an effective protection and cure for malaria - one of the deadliest diseases that affects people in tropical areas, especially children. As the World Health Organization announces plans to begin clinical trials of a promising new vaccine, scientists in South Africa report that they too are at an important threshold. George Putic reports, they are testing a compound that could be a single-dose cure for malaria.
Video

Video Special Olympics Athletes Meet International Friends

The Special Olympics are underway in Los Angeles, California, with athletes from 165 countries participating in an event that gives people with intellectual disabilities the chance to take part in an international competition. VOA's Mike O'Sullivan reports that for athletes and their families, it's also an opportunity to make new friends in an international setting.
Video

Video 'New York' Magazine Features 35 Cosby Accusers

The latest issue of 'New York' magazine features 35 women who say they were drugged and raped by film and television celebrity Bill Cosby. The women are aged from 44 to 80 and come from different walks of life and races. The magazine interviewed each of them separately, but Zlatica Hoke reports their stories are similar.
Video

Video US Calls Fight Against Human Trafficking a Must Win

The United States is promising not to give up its fight against what Secretary of State John Kerry calls the “scourge” of modern slavery. Officials released the country’s annual human trafficking report Monday – a report that’s being met with some criticism. VOA’s National Security correspondent Jeff Seldin has more from the State Department.
Video

Video Iran Nuclear Pact Wins Few New US Congressional Backers

Later this week, President Barack Obama returns from a trip to Africa to confront a U.S. Congress roiled by the nuclear accord with Iran, an agreement that has received the blessing of the U.N. Security Council. Days of intensive lobbying and testimony by top administration officials have won few new congressional supporters of the pact. VOA’s Michael Bowman reports.
Video

Video Washington DC Underground Streetcar Station to Become Arts Venue

Abandoned more than 50 years ago, the underground streetcar station in Washington D.C.’s historic DuPont Circle district is about to be reborn. The plan calls for turning the spacious underground platforms - once meant to be a transportation hub, - into a unique space for art exhibitions, presentations, concerts and even a film set. Roman Mamonov has more from beneath the streets of the U.S. capital. Joy Wagner narrates his report.
Video

Video Europe’s Twin Crises Collide in Greece as Migrant Numbers Soar

Greece has replaced Italy as the main gateway for migrants into Europe, with more than 100,000 arrivals in the first six months of 2015. Many want to move further into Europe and escape Greece’s economic crisis, but they face widespread dangers on the journey overland through the Balkans. VOA's Henry Ridgwell reports.
Video

Video Stink Intensifies as Lebanon’s Trash Crisis Continues

After the closure of a major rubbish dump a week ago, the streets of Beirut are filling up with trash. Having failed to draw up a plan B, politicians are struggling to deal with the problem. John Owens has more for VOA from Beirut.
Video

Video Paris Rolls Out Blueprint to Fight Climate Change

A U.N. climate conference in December aims to produce an ambitious agreement to fight heat-trapping greenhouse gases. But many local governments are not waiting, and have drafted their own climate action plans. That’s the case with Paris — which is getting special attention, since it’s hosting the climate summit. Lisa Bryant takes a look for VOA at the transformation of the French capital into an eco-city.
Video

Video Racially Diverse Spider-Man Takes Center Stage

Whether it’s in a comic book or on the big screen, fans have always known the man behind the Spider-Man mask as Peter Parker. But that is changing, at least in the comic book world. Marvel Comics announced that a character called Miles Morales will replace Peter Parker as Spider-Man in a new comic book series. He is half Latino, half African American, and he is quite popular among comic book fans. Correspondent Elizabeth Lee reports from Los Angeles.
Video

Video Critics of Japan Defense Policy Focus on Okinawa

In Okinawa, many locals have long complained that Tokyo places an unfair burden on the tiny island by locating most of Japan's U.S. military bases there. As Japan's government moves toward strengthening and expanding the country's defense policies, opponents of those plans are joining local protesters in Okinawa, voicing concern about where the country is headed. VOA’s Brian Padden reports from Okinawa.
Video

Video IS Uses Chemical Weapons in Syrian Attack

Islamic State militants have added a new weapon in their arsenal of fear: chemical weapons. VOA Kurdish service reporter Zana Omer was on the scene within hours of a recent attack in Hasakah, Syria, and has details of the subsequent investigation, in this report narrated by Miguel Amaya.
Video

Video Historic Symbol Is Theme of Vibrant New Show

A new exhibit in Washington is paying tribute to the American flag with a wide and eclectic selection of artwork that uses the historic symbol as its central theme. VOA’s Julie Taboh was at the DC Chamber of Commerce for the show’s opening.

VOA Blogs