Focus on Russia

iPhone In Russia: Dates Unclear, Modest Sales Forecasts

11 Jul 2007

Eugene Butman, General Director of Apple IMC Russia has stated when answering the question about iPhone shipment to Russia, that nobody knows when the shipment would begin. “With all responsibility I can declare that there is no a single person on the territory of Russia and Europe who knows when iPhone will appear in Russia”, - he remarked.

However the sources of CNews in Apple IMC are saying somewhat different information, that long awaited device may appear in Russian market in September-October of 2007. "The sales channel hasn't been determined so far, but these will most likely be federal chains, such as Euroset, Svyaznoy, Dixis and others." Previously the appearance of iPhone in Russia was expected no earlier than 2008.

Ochir Mandjikov, Press Secretary of Euroset, a Russian mobile phone retailer, said: "The company's intention to introduce the phone in late 2007 is probably connected to its wish to win from New Year holiday sales. It is common knowledge that almost all vendors introduce new popular products in autumn. The company's intention might as well be its reaction to new phones with a sensor screen from Samsung and LG, which are often compared to iPhone." CNews cites experts who say that the early date of iPhones shipment to Russia will not automatically mean Apple wins the competition. "iPhone prospects in Russia depend on Apple's efforts in that direction, - says Dmitry Havzhu, Director of Maccentre. – If Apple wants to sell only 50,000 devices a year they don't have to do anything, it will happen anyway. If they're going to sell 500,000 they have to work hard, preparing the product for the market, think about third party software portability to the new OS, motivate partners, do the marketing eventually." Euroset also thinks that one should not expect any remarkable demand for iPhone because of "Apple's absolutely unclear distribution policy in Russia, inadequate pricing and quite modest marketing initiatives."

The Russian segment of the Internet is filled with proposals to sell iPhone. Yet specialists warn that customers who will purchase non-localized version of iPhone will encounter numerous issues.

"Of course, iPhone is capable to work in Russian networks, but it is connected to AT&T by default, - remarks the leading analyst of J’son & Partners, Sergey Savin. – So correspondingly, our user won’t be able to connect to unique content. Of course such an iPhone would not have any service support”. Although, notices Mr. Savin, taking into account that the dates of iPhone release in Russia are not defined yet, the purchase of this device in USA is a feasible step to make for long expecting subscribers, if they would not be stopped by the localization issues.

Based on Cnews.ru materials

Note from EYELINE.MOBI: Apple's overlooking of the Russian market looks quite strange considering the GSM statistics. Compare the data for USA and Russia (Source: World Cellular Information Cervice by Informa Telecoms & Media, 2006).

Russia vs. USA GSM Statistics

Country	Subscribers End Sep 05	GSM Penetration
USA	68,286,960	23.02%
Russia	110,405,040	77.08%

Permanent link: http://eyeline.mobi/focus_on_russia/94/

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