For exiting the Russian market over Ukraine’s invasion, Apple may lose about $3 million daily or a total of $1.4 billion by the end of the year.
The loss is based on Apple’s 15 per cent share of the Russian smartphone market which stood at ₽730 billion or $7.6 billion as of 2021.
Apple, Mercedes Benz and Shell are among the scores of leading brands across industries, from entertainment to banking to motor vehicles and others, have decided to suspend operations in Russia as a show of solidarity with Ukraine. Moscow has continued its military advance against Kyiv for 12 days now, displacing more than 1.5 million people in Ukraine who have been forced to seek refuge in foreign lands.
Although the revenue from Apple’s products share of the Russian market appears insignificant, the tech giant’s exit will likely leave a mark on its smartphone sales that have been growing in the country.
Data from vendor accessed by Burga indicates that South Korea’s Samsung occupies the pole position with 34 per cent, followed by Xiaomi at 26 per cent while Apple accounts for 15 per cent and third overall of the Russian smartphone sales.
Realme has a share of 8 per cent, followed by Poco at 3 per cent, while other smaller brands account for 14 per cent.
Burga projected a higher revenue loss given that Russia’s general smartphone sales income has risen steadily in the last few years.
As of 2020, the revenue stood at ₽570 billion or $5.93 billion, while in 2019, the figure was at ₽500 billion or $5.2 billion. Overall, between 2014 and 2021, the figure has spiked almost 200 per cent
Burga’s report acknowledges the tough relationship between Russia and Apple in recent years.
According to the research report, 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.”
After Apple decided on Russia, the move has placed pressure on other brands like Samsung that have also stopped shipping products to the country.
Consequently, the exit by the two manufacturers might be a window of expansion for Chinese operators that are likely to stay put.
However, such firms might suffer the impact of any follow-up sanctions that can bar companies from operating in Russia using U.S. origin technology.
