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Vietnam’s iPhone shipments for Apple considerably elevated within the second quarter of 2022, due to shift in client sentiment in the direction of excessive finish telephones, and an enlargement of Apple retail.
Shipments for funds smartphones remained principally flat, declining 1% year-over-year to three.2 million items. Premium smartphones, nonetheless, categorized as these above $400, grew 75% year-over-year. Smartphones designed for gaming additionally noticed excessive development.
Apple’s tempo throughout COVID-19 and macroeconomic troubles stay sturdy. Its smartphone shipments elevated probably the most amongst main OEMs, growing 115% year-over-year with 15.4% market share, whereas most others noticed decreases.
Moreover the shift to higher-end telephones by shoppers, the iPhone enlargement is occurring as a result of Apple is enhancing its personal retail presence, and boosting official distributors.
OPPO was the one Chinese language model to see development at 25% year-over-year with its mid-range smartphone fashions, with a marketshare of 20.7%. Different Chinese language manufacturers noticed a decline in year-over-year shipments regardless of excessive inventories.
In the meantime, Samsung broke simply above even at 3% year-over-year because it was compelled to chop manufacturing at its manufacturing facility in Vietnam. The corporate launched funds smartphones and mid-range units in its A and M collection which helped its market share of 38.4%.
General, analyst Akash Jatwala attributes the iPhone 11, iPhone 12 Professional Max, and Samsung’s Galaxy S collection as driving the premium market. As well as, Apple lowered costs for sure older iPhone fashions in Vietnam.
Apple’s future in Vietnam is brilliant
Seeking to the longer term, Counterpoint expects additional cargo development within the last quarter of 2022 because the iPhone 14 product line launches, in addition to client spending through the Lunar New Yr. Whereas Vietnam hasn’t skilled a lot main financial points reminiscent of inflation, it could be affected within the second half of the 12 months.
Costs for uncooked supplies in manufacturing could enhance resulting from inflationary strain in different nations, however corporations are nonetheless growing their manufacturing presence in Vietnam.
Apple is testing Vietnamese manufacturing for the Apple Watch and MacBook Professional, and moved some iPad manufacturing out of China into Vietnam this 12 months. Though China’s strict measures in opposition to COVID-19 have seen success, it nonetheless faces main manufacturing unit closures.
Over half of Apple’s suppliers round Shanghai have been affected, and the corporate is seeking to preserve its manufacturing tempo. In a single replace, Foxconn invested $300 million this 12 months to increase its manufacturing facility in Northern Vietnam.