Apple Inc. (NASDAQ:AAPL) just signed a deal with Megafon for three years to sell the iPhone. Reuters reported the Russian carrier signed a three year contract with Apple Inc. (NASDAQ:AAPL) to sell three iPhone models. It’s now the second carrier to sell iPhone handsets in the Russian market. Vimpelcom was the other company to sign up with the Cupertino-based tech giant to sell the iPhone first.
Apple allows Megafon to start selling iPhone again
Megafon hasn’t been able to sell the iPhone since 2009, so this is a big deal. Reuters added, “Megafon said it would buy various iPhone models under the new three-year deal with Apple. It follows Vimpelcom which in October became the first Russian carrier to sign a new direct contract to sell the iPhone 5s and 5c. Market leader MTS still buys the smartphones from distributors.”
Megafon used to sell the iPhone along with other Russian carriers until the iPhone stopped allowing the carriers to sell their phones over the lack of guaranteed sales.
More details on the deal
Bloomberg added, “As of the middle of 2013 none of Russia’s three largest wireless operators sold iPhones in their retail outlets, citing unfavorable terms offered by Apple Inc. (NASDAQ:AAPL). In September, Apple changed its sales policy in Russia from distributing iPhones only via telecom operators and started selling devices through computer wholesalers Merlion and DiHouse. OAO Mobile TeleSystems, Russia’s largest wireless carrier, and VimpelCom Ltd. (VIP) resumed iPhone sales in their retail locations in October. Six years after the iPhone’s introduction, Apple Inc. (NASDAQ:AAPL)’s share of Russia’s smartphone market is hovering at about 9 percent as the device is too pricey for all but the wealthiest of the country’s 143 million people. The Russian market highlights Cupertino, California-based Apple’s dilemma as it balances between keeping its industry-topping profit margins and challenging Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930)’s dominance in high-growth markets.”
Apple Inc. (NASDAQ:AAPL) seems as if it’s on the path to global market domination.