Thursday, 18 July 2013

Russia turns its back on the iPhone due to lack of profits by app

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iOS 7 will be available on the iPhone 5
THREE RUSSIAN MOBILE OPERATORSreportedly have stopped selling theApple iPhone because they weren't making any money from sales of the device.
The Financial Times reports that MTS, Megafon and Vimpelcom, which together make up four-fifths of the Russian mobile phone market, have all stopped selling the iPhone.
None of the operators have spoken out about not making money on selling theApple smartphone, although analysts reportedly have claimed that the networks have made "significant" losses when selling iPhones on two or three year contracts. What's more, Russia bans handset subsidies for customers, which makes the iPhone pretty expensive there and means that the operators probably aren't shifting many devices.
However, the networks have spoken out about their relationships with Apple. MTS said that it's in discussions with the firm about potentially restarting iPhone sales, after Apple said it would not face a charge for failing to reach its sales target. It is also keen to continue selling the iPad, the operator said, claiming it "sees potential" for the product in Russia.
Vimplecom, on the other hand, is unlikely to reboot its iPhone sales any time soon, saying that "Apple refused to soften the contract terms".
While the three most influential Russian carriers have canned their iPhone sales plans, Apple will still be able to sell iPhones through a number of retail electronics stores in the country. The decision by Russian carriers is unlikely to hit Apple's iPhone sales very hard, as it holds a mere 4.5 percent share of the Russian mobile phone market.
Apple was not immediately available for comment

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