Russia's Megafon deal with Apple, Inc. guarantees sales of 750k iPhones over 3 years
Russia's second largest carrier Megafon said its iPhone agreement with Apple requires it to sell 750,000 iPhones over three years and spend $28 million on marketing and promotion through 2016.
The terms of the agreement were spelled out in the carrier's 2013 financial report, which was released this week and reported by Reuters.
The details illuminate the type of agreements Apple makes with carriers. By specifying aggressive minimum sales and incorporating co-marketing budgets, Apple aligns carrier's goals with its own.
Reuters cited Sergei Libin, an analyst at Raiffeisen Research, as describing Megafon's minimum iPhone sales volume as "reasonable," adding that "I would not say it could sell much more than this."
Megafon stopped carrying Apple's iPhone in 2009 over a dispute regarding sales guarantees, but after four years it decided to return in January. Third place Russian carrier Vimpelcom similarly signed a deal with Apple last fall.
Apple's iPhone currently holds a 9 percent unit share of the overall smartphone market in Russia, but commands 20 percent of the industry's $5 billion in annual revenues, Reuters noted.
The terms of the agreement were spelled out in the carrier's 2013 financial report, which was released this week and reported by Reuters.
The details illuminate the type of agreements Apple makes with carriers. By specifying aggressive minimum sales and incorporating co-marketing budgets, Apple aligns carrier's goals with its own.
Reuters cited Sergei Libin, an analyst at Raiffeisen Research, as describing Megafon's minimum iPhone sales volume as "reasonable," adding that "I would not say it could sell much more than this."
Megafon stopped carrying Apple's iPhone in 2009 over a dispute regarding sales guarantees, but after four years it decided to return in January. Third place Russian carrier Vimpelcom similarly signed a deal with Apple last fall.
Apple's iPhone currently holds a 9 percent unit share of the overall smartphone market in Russia, but commands 20 percent of the industry's $5 billion in annual revenues, Reuters noted.
Comments
wouldn't it stink if after all this re-negotiation efforts that all trade is cut with Russia due to this Ukrainian fiasco?
Can we sign an agreement to keep trade open with Russia in exchange for cutting off all imports from South Korea instead?
wouldn't it stink if after all this re-negotiation efforts that all trade is cut with Russia due to this Ukrainian fiasco?
Punishing Russia by not selling something, is like a girl punishing her boyfriend with pregnancy abortion for breaking up with her.
wouldn't it stink if after all this re-negotiation efforts that all trade is cut with Russia due to this Ukrainian fiasco?
Punishing Russia by not selling something, is like a girl punishing her boyfriend with pregnancy abortion for breaking up with her.
??? is there money involved in the pregnancy comparison? I am just not groking the similarity.
“Punishing Russia by not selling something, is like a pregnant girl punishing her boyfriend with abortion for breaking up with her.”
Fixed, if not to comment at all on the meaning or accuracy thereof.
Would Ireland need to place sanctions on Russa for this to happen? Are the iPhones US or Irish or is it completely a Tax thing?
love the sarcasm. must be logic in the blender day today.
Damn I clicked on this article because I read it as 'Megan Fox', and you just added to the disappointment with visions of Tim Cook riding bareback, damn you
Should be easy to sell 750,000 iPhones. I would have guessed 3 times that, and with creative Russian accounting $28 mil is nothing over a 36-month period.
Who wants to photoshop Tim Cook riding a horse bareback? That can be your pitch for some of that advertising money to Megafon.
I think your use of the phrase "riding a horse bareback" is a misuse although I assume I get your insensitive comment - was it a weak attempt at sarcasm?
Riding a horse bareback is riding without without a saddle and/or bridle http://en.wikipedia.org/wiki/Bareback_riding whereas hooking up bareback is sex without a condom. If I am naive then please explain.
I'm lost on what a "sanction" is apparently
It means you approve of or authorize something, as in "the torture was sanctioned by the President".
I thought it was a reference to all the in-the-wild-&-topless photos we see of Putin. I'm proud to say that I'm not capable of taking it where you did...
1) What [@]ChristophB[/@] said.
2) I can see how my literal use of bareback can be taken incorrectly and I should have been more clear, but I'm not sure how my comment is insensitive. Could you explain that for me?
Next time go with 'sans saddle'.
or perhaps Lady Godiva Style
Then TC would have to be naked.
Hell, I was too distracted by the jiggling up top to notice the down low. Consider my suggestion retracted.