Subsidies and marketing costs are too highs say the Russian phone guys. Maybe this is why no deal with China Mobil? This is not good since Apple needs all the emerging market business they can muster.
Ok pumpers lets see you rationalize this one.
While the Russian market is not yet a huge source of revenue for the smartphone market, Apple's loss of support from MTS, VimpelCom and Megafon will negatively impact its reach in the burgeoning market, reports Fortune
As Bloomberg reported last week, Russia's largest provider by subscribership, MTS, announced that it would be dropping the iPhone from its lineup, saying subsidies and marketing costs were to blame.
“Apple wants operators to pay them huge money, subsidizing iPhones and their promotion in Russia,” said MTS CEO Andrei Dubovskov. “Now it’s not beneficial for us. It’s good we stopped selling the iPhone as these sales would’ve brought us a negative margin.”
My wife is from Ukraine, and has MTS as her provider. She says it does not matter in Russia whether they sell directly or not. All phones are unlocked and other outlets will sell them. Ukraine is a very status oriented society and Russia is as well. If they want an iPhone they will get it. The question is whether they are black market or truly sold through proper channels.