Soaring iPhone Pre-Order Interest Amidst Rising Prices in Russia

Author: Dylan Bailey Updated: 09-20-2024 09:38 AM

Rising iPhone Pre-Order Demand in Russia

The excitement surrounding the new iPhone in Russia is palpable, with pre-order interest reported to be 15% higher than that for its predecessor. This surge comes despite significant price increases, with new models retailing at least 50% higher than in other markets.

Shift to Parallel Imports

In response to export restrictions imposed by numerous Western companies, including Apple (NASDAQ: AAPL), Russia has embraced parallel imports. This legal shift allows goods to be introduced into the country without obtaining prior approval from brand owners. Such measures have gained momentum following the escalation of the conflict in Ukraine.

Retail Insights on Pricing and Availability

According to Lyudmila Semushina, a representative from electronics retailer restore:, the iPhones set to be launched this month have been sourced from various countries. However, specific details about these countries remain undisclosed. Nations such as Turkey, China, India, and Kazakhstan, which have not enacted sanctions against Russia, have reportedly seen significant increases in trade since the conflict begin.

Higher Pricing Yet Strong Demand

Retailers indicate that while pre-orders commenced on September 10, the prices are steep. An example from electronics retailer M.Video shows the starting price for the 128GB version of the iPhone 16 listed at 112,999 roubles ($1,225), which is over $400 more than its U.S. counterpart. The 1TB iPhone Pro Max has a pre-order price of 249,999 roubles ($2,710), compared to the U.S. price of $1,599.

The New Landscape of Consumer Electronics

With renowned brands exiting the Russian market, the landscape for consumer electronics has changed dramatically. Now, pricing can differ widely, consisting of official retailer prices and those set by parallel sellers. Semushina noted that her company has ceased to officially track the premiums Russian consumers are facing due to this market shift.

Uncertain Future with Apple

Since the beginning of the conflict, there has been no official contact between Semushina’s company and Apple. Since March 2022, Apple suspended all product sales in Russia and curtailed services such as ApplePay, leaving a noticeable gap in the market.

Conclusion

Despite challenges posed by inflation and unfamiliar purchasing channels, Russian consumers are showing resilience and enthusiasm for new technology. The iPhone's appeal has not diminished, as evidenced by the rising demand in the midst of economic pressures.

Frequently Asked Questions

What is the pre-order demand for the new iPhone in Russia?

Pre-order demand for the new iPhone in Russia is 15% higher than for its predecessor, indicating strong consumer interest despite higher prices.

How has the price of the iPhone changed?

The iPhone is approximately 50% more expensive in Russia compared to prices in Western markets, with some models seeing significant price increases.

What are parallel imports in the context of Russia?

Parallel imports refer to goods brought into a country without the permission of the brand owner, which has become common for several products following export bans.

Which countries are supplying the iPhones to Russia?

iPhones are reportedly sourced from nations such as Turkey, China, India, and Kazakhstan, which have not imposed sanctions on Russia since the conflict began.

What impact has Apple's departure had on the market?

Apple's exit has led to price variability in the Russian market, with a mix of official and grey market pricing becoming the norm for consumer electronics.

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