Through Pararel Imports, The Russian Society Can Buy A New IPhone Even Though Embargo Is Being Carried Out By Apple

Apple products will remain available in Russia. (photo: doc. pixabay)

JAKARTA The launch of new products from Apple, on September 7, was also welcomed by Russian citizens. Although the iPhone maker company has officially stopped selling its products since President Vladimir Putin's invasion order to Ukraine in February.

The Russian people themselves will have the opportunity to buy a new Apple iPhone 14 even though US technology companies have left the country. A senior Russian government official told RIA Novosti news agency on Thursday, November 8, this was due to Moscow's parallel import scheme.

Russia announced the scheme in March when it authorized retailers to import products from abroad without the trademark owner's permission.

Asked if the new iPhone, launched by Apple last Wednesday, would be imported under the scheme, Russian Commerce and Industry Minister Denis Manturov said: "Why not? If consumers want to buy this."

Manturov, who is also a deputy prime minister, said last month that the scheme, which includes Western products ranging from luxury clothes to cars, could hit a value of $16 billion this year, equivalent to about 4% of Russia's imports in 2021.

Apple discontinued sales of new products in Russia in March, a week after Russia invaded Ukraine, although the iPhone, MacBook, and other Apple items remain available in Russian stores as retailers sell the remaining stock of their old models. The Russian people can also get newly released devices through import schemes.

Russia's MTS mobile network on Thursday morning sold a new iPhone 14 model pre-order. Prices start from 84,990 rubles (IDR 20.7 million) for the 128GB version.

MTS said shipping could take up to 120 days. Orders also still have the right to cancel orders if they face difficulties importing products.

For Indonesia itself, there is no definite news yet, when this product will appear in cell phone outlets in the country.

Apple did not immediately respond to a request for comment from Reuters on the report.

iPhone Prices in Asia

Apple Inc last Wednesday also stated to keep prices for their latest iPhone stable in the United States. But they will raise the price of their products in several Asian countries where the currency exchange rate has fallen against the dollar in the last year.

The basic iPhone 14 buyers in Japan, where yen have slumped 24% since September, were forced to pay 20% more than they did for the iPhone 13 when it launched last year at a price of 99,800 yen (Rp 10 million).

The iPhone 13 itself currently costs 107,800 yen in Japan. Earlier this year, Apple raised the price of the model by almost a fifth to 117,800 yen (IDR 12 million) after yen weakened.

This proves that the dollar power is the biggest risk to Apple's revenue, Credit analyst Suisse wrote in a note. It also gives the picture that Apple's intention not to increase the price of its products does not apply in all countries, except the US.

"The demand for Apple currently remains strong in the US and Europe, while Japan is likely to be under pressure due to recent rising prices and limited subsidies," they said.

However, in China, Apple's third-largest market after the United States, the company is priced the iPhone 14 at 5,999 yuan (IDR 12.7 million). This is the same as the launch price of the iPhone 13, although the currency is down 7%.

Analysts say Apple should be prepared to face the weakening demand in China, where the economy has been harmed by a series of COVID-19 lockdowns that have suppressed consumer spending.

Apple's quarterly revenue April-June in Greater China fell 1% after a strong series of quarters in the region.

The company has previously announced discounts for iPhones in China, where the iPhone 13 is now available at a price of 5,399 yuan.

Likewise in Indonesia, where at the launch last year the iPhone was sold in the range of Rp. 11.6 million. But now the latest iPhone product can reach the range of 12.5 million. Only until now no official price has been issued for Indonesia.