A Strategic Marketing Plan iPhone Xi - Apple

5/14/2023

Executive Summary / Introduction of the Business
The Smartphone market is evolving, and Apple Inc. is getting ready to launch their iPhone Xi
model to the public. Despite the dominance of Samsung, Oppo and Xiaomi, the Vietnam
market remains promising due to the country's ongoing economic growth.
Source: IDC Quarterly Mobile Phone Tracker, 2022Q4
Xiaomi's fourth-quarter 2022 shipments fell 74.8% YoY and 71.0% QoQ to 138,000 units,
dropping its share to 5.4% from 14.9%.

One bright spot was Apple, whose shipments rose by 42.7% quarter over quarter in the final
quarter of 2022. Despite production challenges, Apple's expansion in Vietnam was driven by
the new iPhone 14 series. Apple's total shipments increased by 23.6% year over year in
2022, far outpacing the market decline.
Apple's long-term goal is to dominate the tech industry. The company has developed
cutting-edge technology, which it employs to expand its customer base and revenue. The
constant rollout of innovative new offerings keeps customers interested. The business makes
use of this tactic by keeping its clients abreast of all relevant market news. Apple seizes the
chance and makes sure it pays off for the company.
Background: Existing Markets and Customers
Apple Inc. has retail outlets known as Apple Retail Stores, where customers can purchase
Apple goods in addition to a variety of other consumer and computer technology equipment.

The company sells video games for personal computers, computer accessories, electronic
music, e-readers, and mobile phones. Apple Computer was founded by Steve Jobs in 1977,
and although though the PowerBook G3, the iMac, and the online store were all developed
during his time there, the company continues to place a significant emphasis on electronics
and the box computer.
The company is betting its future on innovative solutions that will further integrate electronics
and computing into people's daily lives, as well as been releasing cheaper iterations of its
smartphone. By the time of Jobs' death, the company's technology had already advanced
into the market, thanks to the incorporation of disruptive marketing into the computer
platform.
Apple Inc. has an extensive history in the electronic sector, thus it is inevitable that the
company will enter the established Smartphone market in Vietnam. As Vietnam's middle
class expands, so does the demand for smartphones there.Despite the increasing demand
for Smartphones, market competition remains intense. By 2028, the Smartphone market is
projected to ship 21.35 million units. In 2023, the Smartphones market is expected to
generate $4.11 billion in revenue and we anticipate the Smartphone market to increase by
0.7% in terms of volume in 2024. From 2023 to 2028, analysts predict a 0.78% yearly
increase in market revenue (Chen et al., 2021)
While the electronics industry as a whole is doing well, low prices are putting pressure on
earnings. Customers today want innovative products with cutting-edge qualities but are also
price-conscious and tech-savvy. Despite this, the electronic sector in Vietnam contributes
significantly to GDP. IDC estimates that 2021 smartphone sales in Vietnam have witnessed
15.9 million units, an increase of 11.9%. Apple, in order to keep a substantial part of the
market despite environmental shifts, must differentiate its products and target specific groups
of users.
Situation Analysis (External):

PESTLE
Political factors:
Politics affect Apple both positively and negatively. Apple can win from free trade reforms.
COVID-19 economic issues can be overcome through global free trade agreements,
however, Apple's growth and global sales income may be threatened by trade disruptions.
Apple's two biggest markets, China and the U.S., have political problems. Apple loses if
China raises electric device tariffs. Thus, Apple faces political opportunities and challenges.
Economic factors:
Apple, an international firm, needs global economic considerations. Vaccines will help the
global economy recover faster. 2021 saw a 5.5% global growth and 4.2% in 2022 (Jessica
Lombardo, 2023). Apple can expand as the global economy recovers. Apple also prioritizes
developing country expansion. In 2017, Apple's Asia Pacific revenue was 15,199 million
dollars; in 2020, it was 19,593 million. Apple relies on global and local economic growth.
Socio-cultural factors:
Thirdly, sociocultural variables greatly impact Apple's profitability. Despite the 2020 COVID-
19 pandemic, Apple announced revenue growth of 11% across all segments and
geographies. Due to global remote working and studying, individuals require devices to work,
learn, and play. Social change is supporting MacBook and iPad sales. Thus, Apple can
capitalize on technology demand. However, Iiternational anti-Apple attitude is rising, such as
Chinese consumers choosing native brands because they're cheaper and to support
domestic brands. Thus, external sociocultural influences affect Apple's growth.
Technology factors:
Apple has further technological opportunities due to technology factors . Apple recognises
the global cloud computing demand as a great opportunity. Apple may optimise its profits
with the advancement of cloud computing technology by offering cloud services. Apple's
service income increased from 32,700 million dollars in 2017 to 53,768 million dollars in
2020, according to our data. However, Google's developing technology is challenging Apple,
as these alternative choices would threaten Apple to lose some of its potential customers
(Chen et al., 2021).
Ecological/Environmental
Apple Inc.'s macroenvironment presents growth opportunities.

Corporate sustainability encourages energy efficiency, which can boost Apple Inc.'s image.
Technology firms can boost efficiency and attract eco-conscious clients. Apple addresses
remote or macro-environmental issues through PESTEL research. Supplier responsibility
addresses environmental issues. Apple’s operations management lets enterprises capitalize
on these trends.
Legal Issues
Apple faces macro-environmental legal threats. Privacy limitations and policy concerns can
hurt Apple legally.
In the digital age, countries have tightened privacy laws on Apple Inc. This legal concern
may increase regulatory compliance and limits for the technological company. Apple may
leverage on this external element by strengthening privacy. The company is also sued for
after-sales service and other rules. Australia, the EU, and the US criticize and sue the
company's third-party repair policies. Based on this, Apple must stress privacy protection and
regulatory compliance in all its products and consider changing its policies and procedures to
address legal constraints on the firm in Vietnam
Porter 5 Forces
Competition: Apple Inc. confronts competition from similar but less expensive items in an
intense competitive market. The level of direct competition is strong, and the intensity of its
competitors' effect is high (for example, through quick innovation, imitation, and aggressive
advertising). Competition also arises because there is little to no product differentiation
(several options exist that serve the same purpose) and switching costs are cheap
(consumers can simply switch brands) (Boehner et al., 2012). Since the rivals provide a
plethora of computer layouts tailored to suit a wide variety of end-users, the company needs
to be always creative and price-aware.
Customers' power of bargaining: consumers can easily transfer to a different brand if they
are dissatisfied with Apple's offerings.The business strategy is to create items that stand out
from the competition. This results in superior goods, and it also allows for the provision of
goods that cater to the specific preferences of individual customers. Since it is so challenging