Apple Execs to Meet With Russian Distributors Over Upcoming iPhones

by

iphone_5_black_whiteApple executives are traveling to Russia this week to meet with the company’s top retailers and distributors in the country, reports TechCrunch. At the meetings, execs are said to be discussing tactics to increase sales and supplies in Russia, as well as covering which iPhone models will be sold.

In Russia, we understand, Apple is sending over some of its top people to meet with various retailers in the country. It seems that the details of what the meetings will entail have been very limited, even to the parties themselves.

"Apple is coming to town to talk to different retailers," one told me. "There is going to be a discussion about getting more active in Russia with the iPhone. I assume the discussions will include models that will be launched here.”

As with China Mobile in China and DoCoMo in Japan, Apple has had trouble securing deals with Russian carriers. After Russia's largest carrier, Mobile TeleSystems (MTS), opted to stop selling the iPhone in 2012 over contractual disagreements, Apple’s only iPhone distribution in the country has been through third-party retailers. Supplies in the country are routed through a single distributor and often constrained, an issue which Apple appears to be looking to fix.

Today, Apple has a deal in place with one distributor, Svyaznoy, which is also one of the country’s main mobile phone retailers itself. In addition to its own retail business, Svyaznoy acts as a distributor to other retailers, both offline and online. Its competitors, understandably, think this is unfair at best. "We either don’t get access to iPhones, or a sub-minimum level of stock from Svayznoy," a retailer told me. "You rely only on Svyaznoy, but they completely control the supply and the market.”

In Russia, carriers and retailers are unable to offer subsidized pricing. High taxes also make the iPhone expensive in the country, and Apple’s contracts often require carriers to purchase a large number of phones. Though that’s a daunting prospect with the standard iPhone, the lower-cost iPhone that Apple is developing could be more appealing to consumers, retailers, and carriers, in terms of supply and cost.

Despite the fact that iPhones in Russia are sold outside of carriers, Tim Cook noted during Apple’s third quarter earnings call that iPhone activations in Russia were at an all time high. He also said that Apple was seeking other relationships in the country to "add and enhance" the current ones.

Apple's iPhone 5S and lower-cost iPhone 5C are expected to debut during a September 10 iPhone event. While rumors have suggested that the phone will launch on September 20 in multiple countries, Russia often gets its iPhone supplies several months after launch.

Top Rated Comments

(View all)
Avatar
93 months ago
They'll never break the market until they make a vodka-flavoured one.
Score: 3 Votes (Like | Disagree)
Avatar
93 months ago

They'll never break the market until they make a vodka-flavoured one.


Leave the vodka market to Samsung.

----------

darn, so close with the champagne one :)


Apple is targeting the oligarch segment. Champagne goes great with caviar. :D
Score: 2 Votes (Like | Disagree)
Avatar
93 months ago
Wolverines
Score: 1 Votes (Like | Disagree)
Avatar
93 months ago
What? No "in communist Russia" jokes?

Or is that "in soviet Russia"?
Score: 1 Votes (Like | Disagree)
Avatar
93 months ago

They'll never break the market until they make a vodka-flavoured one.


darn, so close with the champagne one :)
Score: 1 Votes (Like | Disagree)

Top Stories

iPhone 12 Pro in Graphite and iPhone 12 in Blue Shown Off in Unboxing Videos

Monday October 19, 2020 8:20 am PDT by
While the iPhone 12 Pro does not launch until Friday, we now have an early unboxing video of the device courtesy of Twitter account DuanRui, providing a closer look at the shiny new flat-edge design and sleek Graphite color option. Ben Geskin re-uploaded the unboxing video to YouTube, which we've embedded below: Geskin has also uploaded an unboxing video of the iPhone 12 in Blue: ...

New Photos Offer Better Look at iPhone 12 Color Options

Tuesday October 20, 2020 2:34 am PDT by
As we wait for the iPhone 12 review embargo to lift later today, more pictures are circulating of the devices in real-world lighting conditions, providing a better look at the different colors available. Leaker DuanRui has shared images on Twitter of the iPhone 12 in white, black, blue, green, and (PRODUCT)RED. The black and white colors are similar to the iPhone 11 colors, but the other...

Kuo: iPhone 12 Pro Demand Higher Than Expected

Sunday October 18, 2020 10:39 pm PDT by
TF International Securities analyst Ming-Chi Kuo released a research note this morning detailing what he's seen with the volume of iPhone 12 and iPhone 12 Pro pre-orders in the first weekend of sales. Kuo had previously indicated that Apple's estimated shipment allocations for the new iPhone models placed the iPhone 12 at the top with 40-45% of inventory allocation (up from 15-20%). However, ...

Apple Releases iPadOS and iOS 14.1 With Multiple Bug Fixes Ahead of iPhone 12 Launch

Tuesday October 20, 2020 10:06 am PDT by
Apple today released iOS and iPadOS 14.1, the first major updates to the iOS and iPadOS 14 operating system updates that were released in September. iOS and iPadOS 14.1 come a week after Apple released the golden master versions of the updates to developers. The iOS 14.1 update can be downloaded for free and it is available on all eligible devices over-the-air in the Settings app. To access...

Hands-On With Apple's MagSafe Charger for iPhone 12

Monday October 19, 2020 11:54 am PDT by
Alongside the new iPhone 12 models, Apple introduced a MagSafe charger that attaches to the back of the iPhones using magnets embedded both in the charger and in the iPhone. It allows for speedier charging and paves the way for a portless iPhone in the future. MagSafe chargers are shipping out and are in some Apple retail locations now, and we picked one up to check it out. Subscribe to the ...

Watch: iPhone 12 and iPhone 12 Pro Unboxing Videos and First Impressions

Tuesday October 20, 2020 6:05 am PDT by
Apple's embargo has lifted for iPhone 12 and iPhone 12 Pro reviews. In addition to our detailed review roundups for each device, we've rounded up over a dozen unboxing videos and first impressions below. iPhone 12 in Blue on left and iPhone 12 Pro in Pacific Blue on right via Engadget Key new features of the iPhone 12 and iPhone 12 Pro include a flat-edge design, 5G support, a much faster A14 ...

Some Apple Watch SE Owners Experiencing Issues With Overheating [Updated]

Monday October 19, 2020 11:38 am PDT by
There may be an issue with the new Apple Watch SE, which some users have found is overheating after a few hours of usage. Several Apple Watch SE owners in South Korea have run into problems, as noted in a Reddit post chronicling the complaints. There have been six reports from Apple Watch SE owners in South Korea who have had their Apple Watches get hot and malfunction, with a yellow spot...

Gold Version of iPhone 12 Pro Apparently Has a More Fingerprint Resistant Stainless Steel Frame

Tuesday October 20, 2020 11:56 am PDT by
iPhone 12 Pro reviews hit the web today, and one of the more interesting tidbits came from TechCrunch's Matthew Panzarino, who revealed that the Gold version of the device apparently has a more fingerprint resistant coating applied to the stainless steel frame. From his review:Most of the iPhone 12 Pro finishes still use a physical vapor deposition process for edge coating. But the new gold...

iPhone 12 Pro Max Has Smaller 3,687 mAh Battery According to Regulatory Filing

Tuesday October 20, 2020 8:48 pm PDT by
Apple's new iPhone 12 Pro Max is equipped with a 3,687 mAh battery, which is around 7% less capacity than the 3,969 mAh battery in the iPhone 11 Pro Max, according to a regulatory filing published by TENAA, the Chinese equivalent of the FCC. The regulatory filing, spotted by MacRumors, also lists the iPhone 12 Pro Max with 6GB of RAM as seen in benchmark results last week. Apple has filed ...

Hands-On With Apple's iPhone 12 and 12 Pro MagSafe Cases

Tuesday October 20, 2020 1:33 pm PDT by
Apple's iPhone 12 and 12 Pro are launching this Friday, and ahead of that release date, Apple is shipping out various accessories like the MagSafe charger and MagSafe cases. Yesterday we took a look at the MagSafe charger, and today our MagSafe case came in the mail, so we thought we'd take another look at the charger to see how it works with the case and just how strong the case magnets are. S ...