Apple CEO Tim Cook arrived in Hanoi, Vietnam, on Monday as the US tech giant looks to expand sales in new markets.
According to local media reports, Cook will meet with Apple users, developers and content creators during his two-day visit.
The CEO posted a photo to X with musicians in Hanoi on Monday. He drank egg coffee.
Cook’s visit comes at a challenging time for U.S. technology giants. Global iPhone shipments fell 10% in the first quarter of 2024 compared to the same period last year, according to statistics released by International Data Corporation (IDC) on Monday.
Apple faces intense competition in the high-end smartphone market in which it operates, particularly in key markets such as China.
According to IDC, Apple has quietly grown to become Vietnam’s third-largest smartphone vendor by shipments, after Chinese electronics makers Oppo and Samsung. And Vietnam has become a key location for manufacturing as the Cupertino giant looks to diversify its product assembly away from China.
Apple’s dependence on China for its products came under scrutiny in 2022 as China’s strict coronavirus prevention measures and worker riots at Foxconn’s flagship iPhone factory disrupted production. Foxconn is the main assembler of Apple’s iPhone.
In December, the Nihon Keizai Shimbun reported that Apple would move some of its key engineering resources for the iPad to Vietnam. The country is currently reportedly involved in the development and manufacturing of the MacBook, iPad, and Apple Watch.
Apple CEO Tim Cook (C) walks near Hoan Kiem Lake in downtown Hanoi during a visit to Vietnam on April 15, 2024.
Jiang Hui | AFP | Getty Images
“Vietnam is important to Apple not only because of its growing fan base, but also because the industry is hedging risks by diversifying manufacturing outside of China. “This includes major locations like Vietnam, where we have had a long-standing presence,” Brian Marr, vice president of client device research at IDC, told CNBC.
“Apple’s diversification efforts include devices such as notebooks, and contract manufacturers such as Quanta and Foxconn are already investing in them.”
India has also emerged as an important hub for iPhone manufacturing.
Bloomberg reported last week that Apple now makes one in seven of its iPhones in India. Apple has started assembling its latest iPhone series in India in 2022. It started with the iPhone 14 series. India is also a huge consumer market for Apple.
Cook’s visit to Vietnam comes after 61 environmental and human rights groups called on Apple to oppose the country’s detention of climate change activists.
