Thursday, November 7, 2024
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Russian retailers have started taking pre-orders for Apple’s latest iPhone 16 models, despite the company’s ongoing export ban to Russia. This move allows Russian consumers to get their hands on the new devices, though at significantly higher prices compared to those in the United States. Leading electronics retailer M.Video-Eldorado and mobile operator MTS have both announced that they are among the first to offer pre-sales of the new iPhone models in Russia.

According to M.Video, shipments of the iPhone 16 are expected to begin within a week. MTS has similarly indicated that physical sales of the devices would follow soon afterward. These pre-sales come despite Apple’s decision to halt product sales in Russia in March 2022, following the country’s invasion of Ukraine. In addition to stopping hardware sales, Apple also suspended services like Apple Pay, aligning with broader Western sanctions aimed at restricting technology exports to Russia.

The pricing for the iPhone 16 in Russia reflects the challenges of importing these devices under current conditions. Russian consumers will have to pay several hundred dollars more than their U.S. counterparts. M.Video listed the starting price of the 128GB iPhone 16 at 112,999 roubles (approximately $1,225), which is over $400 more than the U.S. price of $799. The high-end 1TB iPhone Pro Max is priced at 249,999 roubles (around $2,710) in Russia, compared to $1,599 in the U.S. market. Meanwhile, MTS’s pricing is slightly higher than M.Video’s and requires a deposit of 25,000 roubles for pre-orders.

The significant price difference can be attributed to the complexities of importing goods into Russia due to ongoing sanctions. Since Apple, like many other Western companies, has ceased official exports to the country, retailers have been relying on parallel imports—often referred to as “grey market” imports—to bring these products into Russia. These imports are legal under Russian law, thanks to a government-backed scheme that allows goods from companies that have exited the Russian market to remain available through indirect channels. Devices like the iPhone are often sourced from countries that have not imposed sanctions on Russia, such as Turkey, Kazakhstan, China, India, and the United Arab Emirates. However, it remains unclear which specific routes are being used to bring the new iPhone models into the country.

Parallel imports have become an essential part of maintaining the availability of Western goods in Russia since the start of the conflict in Ukraine. The Russian government has endorsed this scheme as a way to keep popular foreign brands accessible to consumers. Despite the Western sanctions, demand for products like the iPhone remains strong in Russia, highlighting a key vulnerability for the country: its reliance on imported goods and technology. While the Kremlin has called for increased domestic production of technology, Western products continue to be favored by many Russian consumers.

The ongoing tensions between Russia and the West have also led to heightened security concerns around foreign-made devices. The Kremlin has issued warnings to government officials to stop using iPhones, claiming that Western intelligence agencies have compromised them with surveillance software. Apple has denied these allegations, maintaining that its devices are secure and have not been compromised.

As Russia’s geopolitical isolation grows, the ability of companies like Apple to control their supply chains and prevent products from reaching banned markets has been put to the test. The sale of the iPhone 16 in Russia, despite the company’s exit, underscores the challenges firms face in fully withdrawing from a country once they’ve established a large customer base. For Russian consumers, however, the new iPhone remains within reach—albeit at a significantly higher cost—through parallel import channels.

Despite the obstacles posed by sanctions and export restrictions, Western technology and consumer goods retain strong demand in Russia. This reliance on foreign goods continues to pose a challenge for Moscow, as the government seeks to encourage domestic alternatives to reduce dependence on imports. However, the continued popularity of brands like Apple reflects a deep-rooted consumer preference that will be difficult to change in the near future.

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