• Russian Wireless Carrier Megafon Guarantees Sales of 750k iPhones in 3 Years

    Megafon, Russia’s second largest mobile carrier announced recently that they are required to sell 750,000 iPhones over three years due to an agreement with Apple. They are also committed to spend around 1 billion rubles (roughly $28 million) on promotions, marketing, and advertising to the end of 2016. Terms of the agreement were spelled out in the carrier's 2013 financial report, which was released by Reuters. In the reports, details of Apple’s agreements with carriers identified aggressive minimum sales and incorporated co-marketing budgets.

    According to Reuters, analyst Sergei Libin from Raiffeisen Research said the minimum iPhone sales agreed by Megafon and Apple were reasonable. He also stated “I would not say it could sell much more than this.”

    In 2009, Megafon stopped carrying Apple’s iPhone over an argument in regards to sales guarantees but returned in January, four years later. Russia’s third largest mobile carrier Vimpelcom, also signed a deal last fall with Apple.

    Reuters noted that iPhones currently hold a 9% unit share of all smartphone markets in Russia, but requires 20% of the business’s $5 billion in yearly income.

    Source: Reuters
    This article was originally published in forum thread: Russian Wireless Carrier Megafon Guarantees Sales of 750k iPhones in 3 Years started by Akshay Masand View original post
    Comments 2 Comments
    1. confucious's Avatar
      confucious -
      As Megafon are larger than Sprint who averaged over 1.5 million iPhone activations in the first 3 quarters they were selling iPhones 250k / year doesn't seem that unreasonable a target.
    1. Scotty Manley Silberhorn's Avatar
      Scotty Manley Silberhorn -
      750k in three years? I kind would expect that a quarter
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