Apple in no rush to bring iPhone to Russia, China

Fri Jul 18, 2008 10:18am EDT
 
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By Maria Kiselyova and Sophie Taylor - analysis

MOSCOW/SHANGHAI (Reuters) - Unauthorised sales of unlocked iPhones in Russia and China are flourishing, but Apple Inc seems in no hurry to make deals with operators to sell the nifty device in these huge markets officially.

Despite the iPhone being set for launch in 49 more countries including Honduras and Guinea-Bissau, China and Russia -- home to almost half the world's mobile users -- are not on the list.

Operators in those countries have proved reluctant to hand over part of their iPhone-related revenues to Apple -- a model Apple succeeded in imposing in early deals it made with carriers in other countries, who got exclusive sales rights in return.

Talks between Apple and China Mobile, the country's top mobile operator, stalled for that reason. China Mobile says Apple has now dropped its insistence on revenue-sharing but still has no timetable for a launch.

In any case, traders importing iPhones into these markets are often buying in the United States, boosting Apple's sales in this key market, while costs are minimal.

"Right or wrong, Apple needs to show good sales volumes. Russia is extremely profitable for it, all the more so because an iPhone shipped from the U.S. market is not serviced under warranty. That saves Apple around $70 per unit," says analyst Eldar Murtazin at Mobile Research Group in Moscow.

Others say Apple is losing out.

A MILLION CRACKED IPHONES IN CHINA?  Continued...

 
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