Apple has stopped all sales at its Russian online store. This means that customers in Russia can’t buy Macs, iPhones, iPad, Apple Watches, etc. Kudos to the tech giant for doing so — especially as a new study shows the company will pay for it financially.
Data presented by accessory maker Burga indicates that Apple accounts for 15% of the Russian smartphone sales to rank third overall. South Korea’s Samsung occupies the pole position with 34%, followed by Xiaomi in the third spot at 26%. Realme has a share of 8%, followed by Poco at 3%, while other smaller brands account for 14%.
As of 2021, Russia’s smartphone sales stood at ₽730 billion (approximately US$7.6 billion). Therefore, based on Burga’s calculation, Apple might lose an estimate of at least $3 million (or more) in iPhone sales revenue daily or $1.14 billion annually. The amount is based on Apple’s latest recorded Russian market share and the company’s revenue from sales as of 2021.
Burga says that the revenue lost might be higher considering that Russia’s general smartphone sales income has risen steadily in the last few years. As of 2020, the revenue stood at ₽570 billion ($5.93 billion), while in 2019, the figure was at ₽500 billion ($5.2 billion). Overall, between 2014 and 2021, the figure has spiked almost 200%.
After Apple’s decision on Russia, the move has placed pressure on other brands like Samsung that have also stopped shipping products to the country.
Burga adds that the exit by the two manufacturers might be a window of expansion for Chinese operators that are likely to stay put. However, such firms might suffer the impact of any follow-up sanctions that can bar companies from operating in Russia using U.S. origin technology.
Article provided with permission from AppleWorld.Today