Apple dealt another blow in Russia: third major carrier quits selling iPhone, signs with Samsung

Apple dealt another blow in Russia: third major carrier quits selling iPhone, signs with Samsung
Make no mistake - Apple iPhones are popular in Russia and just as in any developing nation they are considered more than just a phone - they are a status symbol. That however does not mean that Russian carriers are ready to agree to Apple’s draconian contracts and conditions.

Now, Vimplecom and its Beeline brand, the last major Russian carrier that sold the iPhone, has cut its ties with Apple and will not renew the contract allowing it to sell iPhones. The country’s two biggest carriers MTS and Megafon have quit selling iPhones earlier precisely because of Apple’s harsh conditions.

What hurts more is that Beeline inked a deal to sell Samsung phones instead as the Koreans offered more favorable terms.

Russia’s big three carriers (MTS, Megafon and Beeline) signed contracts with Apple allowing them to sell the iPhone in 2008. Fast forward five years, and none of them offers the iPhone anymore

There is only one retail outlet that has an official deal with Apple and that is the Svyaznoy chain of stores.

“This decision might be connected to the fact that Vimpelcom signed a contract with Samsung. Moreover, Apple is getting ready to open its own retail store chain in Russia and is not interested in having many third-party vendors. Apple’s conditions are harsh, especially in the marketing department, and are not always beneficial for its partners. That’s why Vimpelcom’s decision looks logical,” Dmitry Ryabinin, chief analyst for Russian Hi-Tech publication explains.

Apple’s market share in Russia is falling slowly but steadily, and the company’s piece of the market diminished from 9% in Q1 2012 to 8.4% in the same period this year.

Having all carriers abandon the iPhone is definitely a blow to the company, but that does not mean that Russians will have a hard time finding an iPhone. Apart from the Svyaznoy store where it is sold, Cupertino has officially launched its online Apple Store in Russia on June 26th.

source: Hi-Tech (translated)

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61 Comments

68. Endinsight

Posts: 1; Member since: Jul 15, 2013

I love it! Apple will spin this news to make it sound like they wanted that to happen, and fanboys will act like "who needs the crappy carriers anyway?" The point is that Apple does not have the freedom to act like a thug any longer since carriers and users have choice. I will never buy Apple since they screw the customer for profit. Wicked.

67. marioellobo

Posts: 44; Member since: Mar 20, 2013

they think that just for the price people is going to assume that's the new one have apple heard about internet ? just my opinion.

62. Dingy_cellar_dweller

Posts: 339; Member since: Mar 16, 2013

When Apple release their new iphone, how many do you think they are going to sell at full price since everyone expects a free one on a plan. Then with no more carrier support for the new model, their's a good chance it won't work properly as you know how Apple likes to change standard protocols.

61. roscuthiii

Posts: 2383; Member since: Jul 18, 2010

In another big blow to Apple... The US won it's e-book price fixing case against Apple. I dunno, maybe I missed the article here on PA or maybe they just forgot to cover it. But, I've seen it in the news elsewhere - 2 days ago.http://arstechnica.com/tech-policy/2013/07/apple-guilty-of-conspiring-to-raise-e-book-prices/

59. Taters

Posts: 6474; Member since: Jan 28, 2013

Every carrier should boycott Apple. I have no idea how they allowed Apple that much power before but it should have never happened. Apple getting all the huge profit margins and all the carriers get is people coming into their stores to buy accessories? Why did carriers even agree that in the first place? Apple rapes everyone because they can. About time people begin to stand up to them. Except HTC who still let's them rape them by giving them money for each phone sold. Lol

58. cobaltox1

Posts: 8; Member since: Jul 06, 2012

I live in a developing nation..MEXICO....and I can asure you iphone is far from being a status simbol anymore....that was maybe a couple of years ago,here in mexico anyone can have a free iphone on contract...I would say people who think a phone can be a status simbol are just airheads....unless we are talking a dimond wrapped one!!!!

47. oister85 unregistered

Good stuff russia dont let these arrogants tell you what to do.

40. Topcat488

Posts: 1424; Member since: Sep 29, 2012

I can do things on a OG-Note that the iphone 5 can not do.!. Multi-Window tasking, just to name one... I would guess the Russian carriers are switching to Samsung, because the people found that out too.

32. Dion25

Posts: 42; Member since: Jul 25, 2012

This will create a frenzy in Russia. Ppl always desire what they cannot have so easy. I'm betting the Black Market, Stolen IPhones, and Auction Sites like Ebay all see a surge in Russia due to low supply high demand.

53. roscuthiii

Posts: 2383; Member since: Jul 18, 2010

They've had steadily swindling market share. This isn't the first carrier to drop the product. They're basically telling people they can't have what they already either don't care about, or don't want. With Apple about to release their cheaper iPhone verison, this is a pretty big blow to them.

30. ilia1986 unregistered

In Soviet Russia, Carriers ban Apple! :D

28. InspectorGadget80 unregistered

How I love mother Russia! They are smart and right. Apple being too damn harsh/strict with its sale program.

27. specialedition99

Posts: 2; Member since: Jan 17, 2013

Apple has got the IOS UI covered with IOS 7. Now they should stop making 2 or 1 phone a year and go ahead with several phones in seizes and prices. That is the only way out if they wana take up the fight, the rest of the competition just makes too many phones a year and then the compare to apple.

25. aco96

Posts: 244; Member since: Oct 12, 2012

I don't understand something: Iphone 5 16gb 570€, lumia 1020 540€. LOL

23. platformwars

Posts: 86; Member since: Sep 14, 2012

Apple should realize that its not in the dominant position it was in 2008 when they laid out the terms.. apart from the US i dont see Apple in a dominant position anywhere else in the world.. and yes.. THIS IS A BIG BLOW FOR APPLE.. Specially when they are going to release a cheap phone as well.. Maybe they think that when they do come out with the low cost iPhone the carriers will beg them again for selling the device.. i dont think that will be the case though.

19. SingDaFire

Posts: 74; Member since: Jun 21, 2013

This news made my day. Lmfao

16. kaira

Posts: 26; Member since: May 12, 2013

Now take that you bad Fruit... Selfish company...

26. itsdeepak4u2000

Posts: 3718; Member since: Nov 03, 2012

Yeah very true, selfish company. overpriced iCraps.

15. abcdefgh

Posts: 471; Member since: Mar 29, 2013

go back apple. you can only fool US people by hypnotising them saying about nationality.

14. MartianMe unregistered

Sounds to me like apple is the real communist .

11. abcdefgh

Posts: 471; Member since: Mar 29, 2013

i would be glad to see if rest of countries also make similar moves :)

8. Galen20K

Posts: 584; Member since: Dec 26, 2008

Is anybody really surprised at this..... we knew there'd eventually be a backlash from the industry as other manufacturers became as popular as Apple.

7. Mxyzptlk unregistered

this is a pretty d**k move by that carrier. Watch as subscriber rate decline rapidly.

10. abcdefgh

Posts: 471; Member since: Mar 29, 2013

i think apple must be worried from this.not the carrier. hope this trend continues worldwide

12. dashing123

Posts: 17; Member since: Jul 04, 2012

K bye, now FOH

13. iushnt

Posts: 3182; Member since: Feb 06, 2013

i don't say that but I think its a good move..Apple keeps harsh condition and the carrier cannot benefit much from it. apple shows that attitude as if they owe carriers and everyone should follow their conditions. that was a blow to apple hope they learn something from it

20. rusticguy

Posts: 2828; Member since: Aug 11, 2012

Gone are the days of iArmtwist.

22. boosook

Posts: 1442; Member since: Nov 19, 2012

since the article says that the iphone market share is only 8.4%, it wouldn't be a great problem for that carrier even if the other carriers continued to sell the iphone... now consider that Vimpelcom was the last to offer the iphone...

29. InspectorGadget80 unregistered

Looks like youre still blind and brainwash by the greedy fruit.

31. tedkord

Posts: 17519; Member since: Jun 17, 2009

Dance, you 5th dimensional mischievous little I imp, DANCE!

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