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Russian carrier MTS sings Windows Phone’s praises, turns its back on Apple

Posted: , by Maxwell R.

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Russian carrier MTS sings Windows Phone’s praises, turns its back on Apple
Andrei Dubovskov, CEO of OAO Mobile TeleSystems (MTS) explained in no uncertain terms how it has been a good thing for Russia’s largest carrier to stop selling the iPhone.

At the end of 2012, MTS stopped selling iPhones, a contributing factor to Apple’s decline of market share in Russia, which has reached parity with Windows Phone. Last winter, Steve Ballmer and Stephen Elop met with Dubovskov to strategize promoting Windows Phone.

That strategy, in addition to the presumably normal fare, involved having Microsoft and Nokia set up “Windows Phone zones” in the carrier’s flagship stores. Nokia has strong brand recognition in Russia which helps too. The result is seeing Windows Phone account for 8.2% of smartphones in Russia versus 8.3% for the iPhone in the first quarter.

Apple’s sales share dropped from 9% while Windows Phone gained from just 5.1%, each from the year prior. Dubovskov noted that MTS would need much better terms to get back in the race with Apple again, “Apple wants operators to pay them huge money, subsidizing iPhones and their promotion in Russia. 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.”

That last sentence should sound familiar, as it is no doubt rings similar to terms that Sprint had to agree to in order to begin selling the iPhone in the US. The third largest carrier in the US is paying through the nose with borrowed money to keep its commitment to Cupertino which means Sprint will be lucky to break even on the iPhone once the current 4-year deal is done.

We will see how SoftBank plays into the picture when that contract is up for renewal, but we would not fault Sprint for following MTS’ game plan if it was looking for another way. Right now, it looks like the Russian carrier, and indeed the Russian market is taking to Windows Phone quite favorably.

sources: Bloomberg via WPCentral

22 Comments
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posted on 09 Jul 2013, 19:35 11

1. jeff1434325 (Posts: 93; Member since: 07 Aug 2012)


good job MSFT & NOKIA! keep it up!

posted on 09 Jul 2013, 21:26 7

12. abcdefgh (banned) (Posts: 471; Member since: 29 Mar 2013)


MSFT n NOKIA FTW

posted on 09 Jul 2013, 22:39 12

17. Nathan_ingx (Posts: 3009; Member since: 07 Mar 2012)


A Microsoft a day keeps 'the' Apple away.

posted on 09 Jul 2013, 19:38 9

2. Jklaz (Posts: 124; Member since: 01 Jul 2013)


iLike

posted on 09 Jul 2013, 19:39 6

3. -box- (Posts: 3784; Member since: 04 Jan 2012)


Hope to see other carriers follow suit. Really, I'd like to see subsidies and exclusives come to an end as well, and just have financing options available like T-Mobile does.

posted on 09 Jul 2013, 21:13 2

10. Bernoulli (Posts: 1443; Member since: 01 Sep 2012)


Or you can just switch to t-mobile and ditch at$t

posted on 10 Jul 2013, 08:46 1

18. -box- (Posts: 3784; Member since: 04 Jan 2012)


I've been with T-Mobile since 2005

posted on 10 Jul 2013, 12:45

20. Bernoulli (Posts: 1443; Member since: 01 Sep 2012)


then why did you use to support at$t when the lumia 920 came out? haha sure fooled me man!

posted on 09 Jul 2013, 20:03 4

4. timezone (Posts: 80; Member since: 16 Jun 2013)


It takes a village to sell phones. You need buy in from the manufactures, mobile companies and the retail outlets. With those elements in place and a great phone and OS the public will buy. Nokia and Windows phone beats iPhone and Android. The public just needs the chance to experience the phone without retail salespeople making stupid statements. Such as the windows phone is buggy, no apps or just get an iPhone because we know better.

posted on 09 Jul 2013, 20:41 4

5. andrexx24 (banned) (Posts: 22; Member since: 09 Jul 2013)


"Nokia and Windows phone beats iPhone And Android" according to who? You plus 30 people in in the whole planet? Are we speaking about planet earth? Lol

posted on 09 Jul 2013, 21:28 3

13. abcdefgh (banned) (Posts: 471; Member since: 29 Mar 2013)


LMAO
.
.
.
sarcasm*

posted on 09 Jul 2013, 20:42 5

6. SingDaFire (Posts: 74; Member since: 21 Jun 2013)


Wat a news..., it made my day... Slowly all other carriers will start doing the same and it will really mark the decline of apple

posted on 09 Jul 2013, 21:29 3

14. abcdefgh (banned) (Posts: 471; Member since: 29 Mar 2013)


ya ya.they r such a money minded company

posted on 09 Jul 2013, 20:42 8

7. rodneyej1 (Posts: 3537; Member since: 06 Jul 2013)


Windowsphone devices are gaining respect in their own right.. I'm not concerned if WP beats the competing I just want to see WP get more respect from developers, OEM's, Carriers, sales associates, and Microsoft... When WP reaches critical mass then a chain reaction will happen.. I'm positive we will get what we want from a mobile device, and we won't have to settle for only two options.. Two boring options.

posted on 09 Jul 2013, 20:44 7

8. SingDaFire (Posts: 74; Member since: 21 Jun 2013)


And i believe in 3-4 years WP will easily overtake apple for the 2nd spot if not the 1st

posted on 09 Jul 2013, 20:50 5

9. Credo (Posts: 693; Member since: 19 Apr 2012)


Why not sooner as Nokia has more and more money to spend on marketing their sexy and gorgeous device's?

Best regards!

posted on 11 Jul 2013, 07:37

22. RobotMan (Posts: 125; Member since: 13 Apr 2012)


Why not tomorrow then. Dream can be sweet.

posted on 09 Jul 2013, 21:14 3

11. speckledapple (Posts: 879; Member since: 29 Sep 2011)


And that is why Apple will eventually struggle down the road. Maybe not now but eventually something will pop up

posted on 09 Jul 2013, 22:31

15. joey_sfb (Posts: 2894; Member since: 29 Mar 2012)


Microsoft history ->http://www.ecis.eu/documents/Finalversion_Consumerchoicepaper.pdf

You can't be a fan without knowing it's history!

posted on 09 Jul 2013, 22:35 2

16. neutralguy (Posts: 1152; Member since: 30 Apr 2012)


I saw boost from android sales when major apps supported android. If major apps supported wp, it will definitely surpass iOS. Wp is a very good platform, it only needs good apps to keep it from gaining more traction.

posted on 10 Jul 2013, 08:51 1

19. -box- (Posts: 3784; Member since: 04 Jan 2012)


It already has good apps. Granted not official versions, but functional third party ones for the rare ones that aren't supported.
I personally have never understood the "app-lust". I use my phone like my computer: Internet Explorer for anything online-related, Office for documents, and the individual games for entertainment, and Zune or WMP for onboard media.

posted on 11 Jul 2013, 06:32

21. timezone (Posts: 80; Member since: 16 Jun 2013)


The windows phone probably has 90% of the major apps from the original companies. What is missing are the apps from smaller companies. You want a fitbit, onstar or a similar specialized app you still have to wait. Instagram is the most famous notable missing app at the moment. Depending on ones needs these misses can be important. However if you care more about the larger general subject apps...windows phone have them.

Don't let one or two missing apps or people telling you the windows phone is bad. They just want to stop you finding and discovering a great smartphone.

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