(Bloomberg) — Apple Inc. CEO Tim Cook meets with Singapore’s leader at the end of his longest tour of Southeast Asia in years, seeking new growth markets and production sites. manufacturing to offset headwinds in China.
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Cook will be in Singapore on Thursday and Friday to meet Lawrence Wong, who is expected to take office as prime minister next month, as well as his predecessor Lee Hsien Loong, according to a person familiar with the matter, who asked not to be present. identified because the executive’s itinerary is not public.
The Apple CEO is set to wrap up a very public tour that took him from Hanoi to Jakarta, during which he repeatedly stressed the importance of the region both as a market and a base emerging manufacturer. His company is looking for growth markets beyond China, a traditional stronghold where demand for its flagship iPhone is lagging. The company is also diversifying its production beyond the communist country to reduce risks at a time of high tensions between the world’s two largest superpowers.
From meetings with leaders of Vietnamese and Indonesian countries to interactions with local customers, Cook filled most of his schedule with advertising activities aimed at generating interest in the brand, the sources said. Apple has already increased its retail presence and production in countries like India, and is now looking to better tap into a relatively fast-growing Southeast Asian market of more than 650 million consumers.
The trip could pave the way for a more aggressive sales campaign in a densely populated region where Android phones from Samsung Electronics Co., Xiaomi Corp. and Oppo dominate the market, one of the people said.
As part of this initiative, the company is set to open the first Apple Store in Malaysia, located in an extravagant shopping complex in Kuala Lumpur. Apple currently operates five physical stores in Southeast Asia, three in Singapore and two in Thailand, according to its website.
Singapore’s plans are subject to change, and Apple has not made Cook’s plan in the region public. Representatives for Apple, Singapore’s Ministry of Finance and the Prime Minister’s Office did not respond to requests for comment.
Apple, which has been in Singapore for more than 40 years, announced on Wednesday its intention to invest $250 million to expand its campus in the city-state. The company employs more than 3,600 people there and said the expansion would provide space for new roles in artificial intelligence and other functions.
“Singapore is truly a one-of-a-kind place and we are proud of the connection we have made with this vibrant community of creators, learners and dreamers,” Cook said in a statement on Apple’s website. “With our growing campus, Apple is writing a new chapter in our history here.”
In the first leg of the tour, Cook met Vietnamese Prime Minister Pham Minh Chinh on Tuesday after pledging new investments in the country. He said Apple plans to buy more components and accessories for its devices from Vietnamese suppliers, which would be a big boost for the country as it emerges as a global electronics hub.
In Indonesia on Wednesday, Cook told President Joko Widodo that Apple was exploring the possibility of manufacturing some of its gadgets there. The two also discussed Indonesia’s controversial new trade rule aimed at producing more goods domestically, one of the sources said.
In the most significant policy move resulting from Cook’s trip, the Indonesian government announced Thursday that it would evaluate incentives to attract more investment from Apple. These could include tax breaks, Coordinating Minister for Maritime Affairs and Investment Luhut Panjaitan said in a video statement, adding that the country could copy India and Thailand in taking such measures. .
Southeast Asia has become an increasingly important market for Apple due to low demand in China. The Cupertino, California-based company has struggled to maintain sales in the country since the launch of its latest iPhone 15 series, leading to a 10% drop in shipments in the first quarter. Beijing’s bans on the use of iPhones in government agencies and state-owned companies cast further uncertainty over Apple’s prospects in China.
While India is expected to become a major driver in the long term, the iPhone represents less than 10% of smartphones sold in that country currently, in part because of its high price.
–With assistance from Philip J. Heijmans, Norman Harsono and Eddie Spence.
(Updated with Indonesia’s potential incentives in 12th paragraph)
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