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Russia's Megafon Signs Multi-Year iPhone Distribution Deal with Apple

Russian wireless carrier Megafon announced today that it has signed a three-year deal with Apple to sell the iPhone, reports Reuters. Megafon first sold the iPhone in 2008 and subsequently halted sales of the handset after it and other Russian carriers could not sell the volume of handsets required by Apple.
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Apple allegedly loosened its requirements for partner carriers, which opened the door for the Megafon deal. Competing carrier Vimpelcom signed a similar, direct deal with Apple in October 2013 that allowed the carrier to start selling the iPhone 5s and 5c. Among Russia's top three carriers, market leader MTS is the remaining holdout, buying its iPhone handsets from third-party distributors instead of Apple directly.

Apple's iPhone has a 20 percent market share of the smartphone market in Russia based on revenue and a nine percent market share based on units sold in 2013. Besides carriers, Apple also sells the iPhone in Russia through its online store and electronics resellers.


Related roundups: iPhone 5c, iPhone 5s, iPhone 6

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Posted: 25 weeks ago

Just a stupid question: Why do carriers have to sign deals to sell a particular phone? Or is this just with iPhones?


They don't need to sign a deal to sell the iPhone. They need to sign a deal to get iPhones from Apple at a discount. They can otherwise choose to buy through a distributor, typically at a higher price.
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