14 DAY TRIAL // Rumors that Russia’s top three wireless operators are planning to ditch Apple’s iPhone seem confirmed, but sources in Taiwan’s handset supply chain say the move might be a strategy to get the handsets at cheaper prices from the Cupertino giant.
According to these Taiwan-based handset supply chain makers, cited in a DigiTimes report, Mobile TeleSystems (MTS), MegaFon, and VimpelCom, “the three largest mobile communications operators in the Russia market, have decided to stop sales of iPhone.”
The reason? The trio is unhappy with “Apple asking them to offer high subsidies and set aside large marketing budgets.”
As the three carriers have a combined market share of over 80% in Russia, their boycott against the iPhone could spell terrific news for rivals like Samsung, Nokia, HTC, and Sony.
Not to mention that Android is already the king in Russia, based on market share.
However, the sources analyzed the matter and put forth the following theory: “…the boycott may be a means to press Apple into yielding, and if Apple loosens requirements, the three mobile telecom carrier are most likely to resume sales of iPhone.”
Which seems fairly plausible, especially if Apple rolls out its “budget” iPhone this fall.
The gist of it is that Apple not only imposes high subsidies, but also (in some cases) pushes marketing campaigns onto iPhone carriers, campaigns that may or may not go well with their existing business models.
Dmitry Ryabinin, chief analyst for Russia’s Hi-Tech, has been quoted as saying, “Apple’s conditions are harsh, especially in the marketing department, and are not always beneficial for its partners.”
Editor's note Imagine Apple forcing you to change not only your business model, but even your advertising (which is the face of your company), simply because you want to resell their iPhone. You’d like to have a say in it, wouldn’t you?