Apple (AAPL) roundup: 1) Russia's top 3 carriers - MTS (MBT), VimpelCom (VIP), and Megafon -...


Apple (AAPL) roundup: 1) Russia's top 3 carriers - MTS (MBT), VimpelCom (VIP), and Megafon - have decided to stop carrying the iPhone, citing Apple's purchase, subsidy, and marketing requirements. MTS and VimpelCom have 300M+ subs between them in various emerging markets. 2) Fingerprint sensor and LCD driver chip yield issues will lead ~3M iPhone 5S units to be delayed from calendar Q3 to Q4, Digitimes reports. 3) Frost & Sullivan estimates Apple TV had a 56.1% share of the 2012 IP streaming device market. 4) Evercore observes rumored M&A target PrimeSense has developed tech that's applicable to gaming and smart TV controllers, as well as a sensor chip for notebooks/tablets. (iOS 7/game controllers: I, II)

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Comments (21)
  • Matt-Man
    , contributor
    Comments (982) | Send Message
     
    iPhone client base in Russia is quite limited, probably those who are interested will get it via:
    http://bit.ly/10YZKTs
    16 Jul 2013, 06:47 PM Reply Like
  • Keep It Simple
    , contributor
    Comments (492) | Send Message
     
    My guess is that the iPhone will become even more desired now that they've made it difficult to obtain.

     

    Make a great product that's rare and people will go nuts looking for it and in-turn pay ridiculous prices to obtain it.
    16 Jul 2013, 06:56 PM Reply Like
  • Michael Blair
    , contributor
    Comments (5097) | Send Message
     
    @Keep it Simple - or, possibly, just possibly, Apple will lose a few hundred thousand previous customers who will switch to another phone. I suppose if Verizon and ATT stopped carrying the iPhone more Americans would want to buy it because it would be more difficult to obtain.

     

    Interesting thesis. Would the demand be infinite if they stopped producing them all together?
    16 Jul 2013, 07:33 PM Reply Like
  • zigazaga
    , contributor
    Comments (148) | Send Message
     
    Those who can afford AAPL products will rather switch networks than downgrade to android or windows. It's a question of class, I'm afraid.

     

    Limiting the supply of a quality product will make it more desirable. It's quite a straightforward concept,
    16 Jul 2013, 07:58 PM Reply Like
  • jsmunroe59
    , contributor
    Comments (122) | Send Message
     
    Your despise of AAPL is pathetically transparent. Buy AAPL and start thinking about retirement. Or, keep shorting hoping that AAPL will forget about the customer experience and superior quality. You must own Microsoft, Comcast, or one of the many others who are rightfully terrified that Apple has it right! Good luck with your persistent blind basting! Peace be with you!
    16 Jul 2013, 08:15 PM Reply Like
  • faramarz
    , contributor
    Comments (382) | Send Message
     
    @ Michael Blair " Interesting thesis. Would the demand be infinite if they stopped producing them all together? ".
    The absurdity is your question. Have you ever followed some maths courses: if they stop producing them all together, even the demand of one unit becomes infinite compared to the zero production (1 divided by 0 = infinite).
    More absurd in your statement is that you extend some shortness of the supply to Zero supply.
    17 Jul 2013, 03:43 AM Reply Like
  • Michael Blair
    , contributor
    Comments (5097) | Send Message
     
    The whole thesis that demand for iPhones will increase because carriers stop selling them is what is absurd. No matter how you spin it, losing carrier support is bad for Apple. Yes, I have taken a lot of mathematics courses.

     

    Those courses include mathematics courses included linear algebra, finite dimensional vector spaces, advanced calculus and vectors, group theory, Fourier series, Laplace transforms, the divergence theory, Stokes theorem, Green's theory, the Simplex method of linear programming, and a host of others.

     

    And, like you, I have also taken courses in arithmetic.

     

    Thanks for the comment.
    17 Jul 2013, 07:36 AM Reply Like
  • Keep It Simple
    , contributor
    Comments (492) | Send Message
     
    @Michael Blair - Just because carriers don't supply their customers with the ability to purchase iPhones doesn't mean that those customers won't find other means of obtaining them.

     

    Look at China Mobile, Mike. They have yet to strike a deal with Apple, and yet there are _millions_ of iPhones on their network.

     

    I don't know how Russian carrier contracts work with their customers, but I'd imagine unlocked iPhones running around creates a very unstable environment for those carriers. Why? Because unlocked iPhone owners can switch carriers on a whim.

     

    Remember, a carrier is only a commodity, so it would make sense that all of them or none of them would drop the iPhone in order to stay competitive with each other.

     

    Looks like rough competition over in Russia. And these carriers might be digging themselves a future grave by increasing unlocked iPhones throughout their country.
    17 Jul 2013, 09:28 AM Reply Like
  • Keep It Simple
    , contributor
    Comments (492) | Send Message
     
    @Michael Blair - One more thing. The demand for the iPhone won't disappear overnight.

     

    New distribution markets will be created in order to satisfy that demand.
    17 Jul 2013, 09:32 AM Reply Like
  • nungster
    , contributor
    Comments (130) | Send Message
     
    So who in Russia will be left selling iPhones? Remember way back when iPhone first came out? There was only one supplier as I recall, and we saw how poorly that worked out for that one cell company.
    16 Jul 2013, 08:03 PM Reply Like
  • George Privalov
    , contributor
    Comment (1) | Send Message
     
    Just looked at MTS web site. Don't see any smart phone being subsidized. With S4 offered for $800, Apple will have better luck selling direct online. iPhone was always a status symbol after all.
    16 Jul 2013, 08:43 PM Reply Like
  • Short Prince 7
    , contributor
    Comments (64) | Send Message
     
    Status symbol? Well, if you use Moscow subway or "marshrutki" - yes, indeed.
    17 Jul 2013, 03:02 AM Reply Like
  • Uncle Ben B.
    , contributor
    Comments (9) | Send Message
     
    Apple at status cymbal.....please

     

    Have you seen the type of people that carry an iPhone?

     

    If everyone has it, it kinda looses its exclusivity.
    17 Jul 2013, 06:20 AM Reply Like
  • MarketingMaven
    , contributor
    Comments (150) | Send Message
     
    Not to worry. Russians will not be denied their Western toys.

     

    Having done business in the ex-USSR, I can tell you that there are dozens of Russians with relatives in NYC and Tel Aviv that are jumping for joy at this news. They will set up an acquisition/distribution system par excellance.

     

    Knowing how things work there, I'd not be surprised if this is a scheme by some of Putin's old KGB colleagues to get the carriers out of the picture.
    16 Jul 2013, 10:38 PM Reply Like
  • pman6
    , contributor
    Comments (270) | Send Message
     
    Russia market is peanuts. No worries
    16 Jul 2013, 11:55 PM Reply Like
  • 2MuchDebt
    , contributor
    Comments (406) | Send Message
     
    Denial... So losing 300 million potential customers is peanuts?! It's not just the Russian market either. 13 million units sold in Russia in 2012 (not including carrier sales outside of Russia). The key here is 69% growth over 2011 figures. That kind of growth is key for Apple. U.S. market is saturated. Carrier push back will become a bigger issue for Apple in coming years.
    17 Jul 2013, 08:21 AM Reply Like
  • Matt-Man
    , contributor
    Comments (982) | Send Message
     
    as Russia has population of 143million, potential sounds too good to be true with average salary around 8000$ per year.
    17 Jul 2013, 11:21 PM Reply Like
  • faramarz
    , contributor
    Comments (382) | Send Message
     
    The volume will shift to other countries from where russian resellers will import the iphone. No worry.
    17 Jul 2013, 03:47 AM Reply Like
  • Alex X
    , contributor
    Comments (8) | Send Message
     
    The more expensive - the more coveted in Russia
    17 Jul 2013, 04:03 AM Reply Like
  • jaberwock
    , contributor
    Comments (297) | Send Message
     
    The effect on sales of iPhones in Russia is not the major issue here.

     

    The real issue is that market forces are moving the balance of power away from the manufacturers and towards the carriers. Carriers are now in a position to push back against the business practices of Apple.
    17 Jul 2013, 07:23 AM Reply Like
  • Brian Barbour
    , contributor
    Comments (1315) | Send Message
     
    what is the credibility of the source that this story came from?
    If this is the case they will just sell to other companies and those companies will profit...
    17 Jul 2013, 08:26 AM Reply Like
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