Russia’s Megafon strikes deal with Apple, guarantees sales of 750K

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The terms of Megafon’s agreement with Apple were spelled out in the carrier’s 2013 financial report which was released this week.

The details in the report show just what kind of agreement Apple makes with carriers. By specifying that the carrier has to achieve an aggressive minimum sales targets and incorporating co-marketing budgets, Apple manages to align carriers goals with their 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 back in 2009 over a dispute regarding sales guarantees, but after four years they decided to return to Apple in January. Russia’s third place carrier, Vimpelcom, signed a similar agreement with Apple last autumn.

The iPhone currently holds a 9% share of the overall smartphone market in Russia but commands 20% of the industry’s $5 billion in annual revenues.

 

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