At the conclusion of his most thorough visit to Southeast Asia in recent memory, Tim Cook, the CEO of Apple Inc., is meeting with the leader of Singapore in an effort to find new growth markets and production sites to counteract challenges in China.
An anonymous source with knowledge of the situation said that Cook will be visiting Singapore on Thursday and Friday to meet with both Lawrence Wong, who is expected to become prime minister next month, and his predecessor, Lee Hsien Loong. The source requested anonymity since the executive's schedule is confidential.
The CEO of Apple is about to wrap off a well reported journey that took him from Hanoi to Jakarta. Throughout the trip, he emphasized the region's significance as a market and a developing hub for manufacturing. His business is searching for expansion regions outside of China, which has historically been a bastion for its flagship iPhone, but sales are flagging. In an effort to lower risks during a period of heightened tensions between the two largest superpowers in the globe, the firm is also expanding the scope of its manufacturing outside of the communist nation.
According to the sources, Cook has dedicated the majority of his time to PR efforts aimed at generating interest in the brand, ranging from meetings with national officials in Vietnam and Indonesia to engaging with local consumers.
Apple is currently attempting to better tap into the more than 650 million customers in Southeast Asia, a region that is expanding very quickly. The company has previously expanded its retail presence and output in nations like India.
One of the persons stated that the trip may open the door for a more aggressive sales effort in a highly populated area where Android phones from Samsung Electronics Co., Xiaomi Corp., and Oppo dominate the market.
As part of the drive, the business is almost ready to establish Malaysia's first Apple Store, which will be housed in a posh retail center in Kuala Lumpur. According to its website, Apple now has five physical locations in Southeast Asia—three in Singapore and two in Thailand.
Due to China's low demand, Apple is seeing an increase in market share in Southeast Asia. Since the release of its most recent iPhone 15 series, the Cupertino, California-based corporation has found it difficult to maintain sales in the nation; as a consequence, shipments fell by 10% in the first quarter. The use of iPhones in state-owned businesses and government organizations is prohibited in Beijing, which further clouds Apple's future in that market.
Despite the fact that smartphones are likely to become a significant long-term driver in India, the iPhone now makes up less than 10% of handsets sold there, in part due to its expensive pricing.