Apple's Key to Russia

Russia's No. 2 carrier Megafon has now inked a new deal with Apple (NASDAQ: AAPL  ) after taking a four-year break from the iPhone. Megafon stopped carrying the iPhone in 2009 because of Apple's notoriously strict carrier requirements. The new deal is similar to one struck with Vimpelcom  (NASDAQ: VIP  ) in that Russian carriers are working directly with Apple again. In contrast, Mobile Telesystems  (NYSE: MBT  ) still gets iPhones through distributors.

With more than half of all smartphone sales in the country selling for less than 5,000 rubles, or around $150, by late 2013, Apple's high-end products are having a difficult time gaining traction and account for only around 8% of the current market share. Evan discusses some of the affordability initiatives Apple could pursue here, but more broadly, he highlights the idea that if Apple could loosen some of its strict carrier requirements, he sees numerous niche markets where the company could grow.

In this video from Monday's Tech Teardown, Motley Fool tech and telecom bureau chief Evan Niu looks at Apple's troubles on the whole in cracking the Russian smartphone market.

So who will the real winner be in the smartphone war?
Want to get in on the smartphone phenomenon? Truth be told, one company sits at the crossroads of smartphone technology as we know it. It's not your typical household name, either. In fact, you've probably never even heard of it! But it stands to reap massive profits no matter who ultimately wins the smartphone war. To find out what it is, click here to access the "One Stock You Must Buy Before the iPhone-Android War Escalates Any Further."


Read/Post Comments (1) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On January 27, 2014, at 11:21 PM, dwilh51183 wrote:

    Great quarter AAPL, YOU INCREASED IPHONE SALES BY AROUND 55% IN ONE QTR.THATS GREAT.AND MAC SALES UP, IPADS UP, MINI'S UP, STOCK SHOULD REFLECT THIS CASH BEING MADE. WHO ELSE MAKES THIS KIND OF $$$ ? NO ONE!

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2811970, ~/Articles/ArticleHandler.aspx, 10/23/2014 1:23:11 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement