Despite Sanctions, New iPhone 16 Lands in Russia

Despite Sanctions, New iPhone 16 Lands in Russia Following the outbreak of the Russia-Ukraine conflict, numerous Western companies, including Apple, withdrew from the Russian market in alignment with Western sanctions against Russia. However, despite being under sanctions for over two years, Russian citizens can still purchase the latest iPhone models

Despite Sanctions, New iPhone 16 Lands in Russia

Following the outbreak of the Russia-Ukraine conflict, numerous Western companies, including Apple, withdrew from the Russian market in alignment with Western sanctions against Russia. However, despite being under sanctions for over two years, Russian citizens can still purchase the latest iPhone models. On Thursday (September 18th), Russian electronics retailers M.Video-Eldorado and mobile network operator MTS began pre-selling the iPhone 16, claiming to be the first in Russia to offer the new model. M.Video-Eldorado stated that the new iPhones would start shipping next week, while MTS announced an imminent start to in-store sales.

In early March 2022, Apple announced the suspension of iPhone and other product sales in Russia, along with halting services like ApplePay. This move didn't deter Russian consumers from acquiring Apple products. With the Russian government's tacit approval, foreign brands entered the Russian market through third-party countries, typically those not imposing sanctions on Russia, such as Turkey, the UAE, and India. Due to third-party imports, the iPhones sold in the Russian market are priced significantly higher than usual.

According to M.Video-Eldorado, the 128GB iPhone 16 is being sold for 112,999 rubles (approximately $1225), over $400 more expensive than the US retail price of $799. The pre-sale price for the 1TB iPhone Pro Max is 249,999 rubles (around $2710), compared to the US price of $1599. MTS's iPhone prices are even slightly higher than M.Video-Eldorado, with a 25,000 ruble deposit required for pre-orders.

Although the iPhone maintains a loyal following in Russia, its market share is steadily declining. In the first quarter of this year, Apple's share in the Russian smartphone market was approximately 6%. Analysts predict this figure to drop to 4% by the end of the year. The Russian government has urged officials to stop using iPhones, citing concerns about Western intelligence agencies utilizing surveillance software to threaten them. Apple has denied these allegations.

The ability of Apple products to enter the Russian market amidst sanctions and declining market share reflects the continued demand for Apple products among Russians and the Russian government's partial resistance to Western sanctions. For Apple, the key challenge moving forward will be balancing its own interests with the complexities of international relations.