execs take a trip to Russia to improve iPhone distribution in the country

There’s a trouble in Russia so dis its high-ranked executives to revisit how the company sells i in the country, according to a new report. There’s no denying that has dropped the ballin the important 143 million people market. As we told you recently,the last of Russia’sbig-three carriers stopped selling the iPhone.Russian carriers complain about too onerous conditions, lving it up to resellers and ’s new Russia online store to meet demand.With the new i now looming on the horizon, is now reportedly re-thinking its strategy in the country. That’s good news because Russia is part of BRIC (Brazil, Russia, India and China), a group of emerging markets that are expected toovertake the United Statesas the world’s top smartphone sellers by 2018…Ingrid Lunden, writing forTechCrunch:Some of ’s top executives this week are making a trip to Russia to meet with distributors to revisit how it sells devices in the country.In Russia, we understand, is sending over some of its top people to meet with various retailers in the country.The details of the meetings have been scant,“even to the parties themselves”.“ is coming to town to talk to different retailers,” one told me. “There is going to be a discussion about getting more active in Russia with the iPhone. I assume the discussions will include models that will be launched here.”Without specifying her sources, the author went on to speculate that these meetings could b sign of how may tap a rumoredless-pricey iPhone 5Cto“revisit a market that has seen demand for its products”. is facing tremendous pressure from grey market importers, Russian carriers and local distributors who claim the company is undersupplying them to the point where they can’t meet demand.As of this moment, only has an iPhone distribution agreement with local distributorSvyaznoy, with other retailers complaining about either not getting access to i, or being offered a sub-minimum level of stock from Svayznoy.“You rely only on Svyaznoy, but they completely control the supply and the market,”one retailer told the author. This is in stark contrast to Android handset makers, another retailer told Lunden:Android and other OEMs always come to us. is the other way around: we go to them, asking for more.’s firm stance on iPhone contracts apprs to be softening as a result.
Benedict Evans@BenedictEvans
Bottom 25% of the phone market is too poor for . Today, at $450+, it only addresses the top 25%. How much of the rest does it want?
CEO Tim Cook attributed the difficulties his company faces in the Russia market to high demand, telling investors in ’s June conference call:If you look at the Russian market, over 80 percent of are sold in retail outside of carrier-owned stores. Our s in Russia set a record last quarter as the highest-ever quarter.As a result of ’s sub-par distribution, rival smartphone makers have incrsed their Russian market share. , for instance, saw its share rise to 8.2 percent, up from 5.1 percent in 2012.By contrast, ’s share of the Russian market has slipped to 8.3 percent, down from nine percent in 2012.Russia is currently the largest internet market in Europe and one of the fastest-growing for mobile usage.TheiPhone 5Sand theiPhone 5Care expected to launch at ’s rumoredSeptember 10 media event.