Even though Apple Inc. (NASDAQ:AAPL) officially stopped selling in Russia after the 2022 Ukraine invasion, the tech giant’s iPhone 17 models are now available in Moscow stores. These new smartphones have reached Russian buyers through the government's parallel imports initiative.
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Sanctions Circumvention Through Third-Party Routes
After suspending its operations in Russia in 2022, Apple halted direct sales and removed state-run media apps like RT News and Sputnik from international app stores. However, Russia's parallel imports program has allowed products to still make their way into the country via non-sanctioning nations such as Turkey, Kazakhstan, China, India, and the UAE, according to a Daily Mail report.
Steve Jobs' company had already faced tensions with Russia before the 2022 conflict. Apple paid $13.7 million in antitrust fines over App Store practices and an additional $12.1 million for alleged abuse of its mobile app market dominance.
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According to trade data, the gray-market route generated $1.1 million worth of iPhones during the first half of 2023. Russian retailers have continuously taken advantage of this loophole, with iPhone 15 units even showing up in Moscow stores a full 24 hours before their global launch in 2023.
Surging Demand Drives Market Growth
Russia’s largest telecom provider, MTS, reports that demand for the iPhone 17 has doubled compared to the previous model. Government purchases of iPhone 16 units in 2024 were four times higher than in 2023, highlighting strong institutional demand despite ongoing geopolitical tensions.
Andrey Gubanov, CEO of MTS, stated ahead of the global launch, “Immediately after the official Apple presentation, we will open pre-orders. Last year, the iPhone 16 model turned out to be the most popular smartphone in the lineup.”
Global Launch Success Contrasts Russian Market Access
The iPhone 17's larger 6.3-inch display with 120Hz ProMotion and its 256GB base storage have sparked a surge in international demand. Bank of America Securities (NYSE:BAC) recently increased Apple's price target to $270, citing the company's strong performance and deeper integration of AI.
Premium Pricing Reflects Import Restrictions
According to reports, MTS is pricing the standard iPhone 17 at approximately £977, while the iPhone 17 Pro costs £1,465. These prices represent significant markups over the official U.S. retail price of $799, contrasting sharply with Apple’s dominant 57.24% U.S. market share and record Chinese pre-orders on JD.com.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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