Apple to license 100 official stores in Vietnam to tackle grey market

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Apple Inc. intends to expand its store network in Vietnam by tightening its cooperation with the retail unit of FPT Corp, the country’s largest information technology service company.

FPT Digital Retail, which will list its shares on the Ho Chi Minh Stock Exchange in April next year, said it will be using the proceeds over the next three years to open 100 stores officially licensed by Apple, adding to the ten existing stores and supporting a serious push by the US tech group into the Communist country.

FPT secured the country’s first retail license from Apple in 2012 to set up a store network specialising in Apple products such as iPhone and Macbook under the brand name F.Studio. Each of the ten existing ones showcase Apple products, which make up 40 per cent of their in-store offerings.

Apple has set up a representative office in Vietnam but has not opened any official Apple Stores yet. Currently, sales of Apple products in the country are valued at $1 billion annually. Apple iPhones accounted for seven per cent of the total 14 million smartphones sold in Vietnam last year, ranking third after Samsung Electronics (28 per cent) and Oppo (25 per cent), according to IDC Vietnam. However, there are growing sales of illicitly imported products, which pushed Apple to expand its official retail network.

A recent survey showed more than a third of Apple products in Vietnam markets were “unauthorised items”, meaning they don’t have a company guarantee. FPT Digital Retail expects to provide more choice of officially imported items to meet the demand of Apple fans, who use to often travel overseas to buy the tech group’s latest product.

FPT Corp.’s retail arm is the second biggest mobile handset retailer after The Gioi Di Dong, with over 450 shops nationwide. During a roadshow on December 1, Nguyen Viet Anh, deputy chief executive officer of FPT Digital Retail, said the company expected to collect total revenues of about $600 million in 2017, ten per cent of which would come from online sales.

IPO is expected to attract a lot of investors. However, no indication about the IPO price has been given yet.

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Reading Time: 2 minutes

Apple Inc. intends to expand its store network in Vietnam by tightening its cooperation with the retail unit of FPT Corp, the country’s largest information technology service company.

Reading Time: 2 minutes

Apple Inc. intends to expand its store network in Vietnam by tightening its cooperation with the retail unit of FPT Corp, the country’s largest information technology service company.

FPT Digital Retail, which will list its shares on the Ho Chi Minh Stock Exchange in April next year, said it will be using the proceeds over the next three years to open 100 stores officially licensed by Apple, adding to the ten existing stores and supporting a serious push by the US tech group into the Communist country.

FPT secured the country’s first retail license from Apple in 2012 to set up a store network specialising in Apple products such as iPhone and Macbook under the brand name F.Studio. Each of the ten existing ones showcase Apple products, which make up 40 per cent of their in-store offerings.

Apple has set up a representative office in Vietnam but has not opened any official Apple Stores yet. Currently, sales of Apple products in the country are valued at $1 billion annually. Apple iPhones accounted for seven per cent of the total 14 million smartphones sold in Vietnam last year, ranking third after Samsung Electronics (28 per cent) and Oppo (25 per cent), according to IDC Vietnam. However, there are growing sales of illicitly imported products, which pushed Apple to expand its official retail network.

A recent survey showed more than a third of Apple products in Vietnam markets were “unauthorised items”, meaning they don’t have a company guarantee. FPT Digital Retail expects to provide more choice of officially imported items to meet the demand of Apple fans, who use to often travel overseas to buy the tech group’s latest product.

FPT Corp.’s retail arm is the second biggest mobile handset retailer after The Gioi Di Dong, with over 450 shops nationwide. During a roadshow on December 1, Nguyen Viet Anh, deputy chief executive officer of FPT Digital Retail, said the company expected to collect total revenues of about $600 million in 2017, ten per cent of which would come from online sales.

IPO is expected to attract a lot of investors. However, no indication about the IPO price has been given yet.

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