Africa-Press – Liberia. APPLE Inc could lose at least US$3 million in iPhone sales revenue daily, or US$1,14 billion annually as it announced it would pull out of the Russian market in the wake of the invasion of Ukraine.
According to estimates by Lithuania-based online shopping portal Burga, this amount is based on Apple’s latest recorded Russian market share and the company’s revenue from sales as of 2021.
Apple’s exit in Russia puts a close to the rocky relationship between the two entities. Notably, Russia has in the past enacted questionable policies for companies like Apple to comply with.
“Apple had only recently adhered with a government mandate to open offices in Russia to offer online services there,” said the report.
Although Russia does not account for a significant revenue share for Apple products, the tech giant’s exit will likely leave a mark on its smartphone sales that have been growing in the country.
Data presented by Burga indicates that based on vendor sales, Apple accounts for 15% of Russian smartphone sales to rank third overall.
South Korea’s Samsung occupies the top position, with 34%, followed by Xiaomi at the third spot at 26%.
Realme has a share of 8%, followed by Poco at 3%, while other smaller brands account for 14%, the Burga report mentioned.
Elsewhere, as of 2021, Russia’s smartphone sales stood at US$7,6 billion.
Apple’s revenue lost may be higher considering that Russia’s general smartphone sales income has risen steadily in the last few years.
As of 2020, revenue stood at US$5,93 billion, while in 2019, the figure was at US$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, which has also stopped shipping products to the country.
“Consequently, the exit by the two manufacturers may be a window of expansion for Chinese operators that are likely to stay put.
“However, such firms may suffer the impact of any follow-up sanctions that can bar companies from operating in Russia using US origin technology,” the report said.
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