Russia home to massive unlocked iPhone market
updated 11:00 am EDT, Tue April 29, 2008
Russian iPhone market
The iPhone is extremely popular in Russia despite its official absence from the country, according to multiple accounts. Analyst Eldar Murtazin of Mobile Research Group notes that there are approximately 500,000 iPhones operating in Russia, making for the third-highest number in the world after the United States and China; neither China nor Russia have had deals signed between Apple and a regional carrier. Instead, it is said to be common for Russians to travel to the US and buy phones in bulk, and then smuggle them back home for resale.
The cost of a Russian iPhone is said to be extremely high, with the 8GB model selling for at least $700, approximately $300 more than in the US; in the first days after the iPhone's American debut, some Russians were paying as much as $1,800. Modern phones must still be unlocked, and ideally equipped with a Russian language pack; while this can be done for free by skilled owners, the process can cost another $40 for the average buyer.
The principal buyers are said to be Russia's wealthy elite, including members of the Kremlin such as regional development minister Dmitry Kozak, who has been seen showing it in the company of President-Elect Dmitry Medvedev.
Fresh-Faced Recruit
Joined: May 2005
Not extremely high
The price of $700 is inline with the American price (after all ATT kickbacks are figured in). When there is an official launch in Russia, the price won't be much lower, I'm sure. Keep in mind, iPhone's $400 price is artificially low for two reasons; first, the aforementioned ATT's kickbacks; second, extremely low value of US dollar ($1.57 for 1 EUR!!). There are two reasons why prices of goods (including the iPhone) in the US haven't gone up: the sheer size of American market for foreign manufacturers requires them to take any measure (including reducing profit margins drastically) just to maintain their presence on that market; and second, many of these brands are American brands (made in China), so they have no choice BUT stay in the 'domestic' market, at the expense of cutting (even eliminating) their profits here (and making up the difference elsewhere).I don't expect an unlocked (legal) iPhone to be more than 600 EUR (or its local currency equivalent) when it comes out elsewhere in the world.