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Apple set to lose $3 million daily due to Russian market exit

Apple set to lose $3 million daily due to Russian market exit
Jordan
Major
4 months ago
2 mins read

Although Russia does not account for a large portion of Apple’s (NASDAQ: AAPL) total income, the tech giant’s decision to leave the nation will almost certainly have an impact on its smartphone sales, which had been increasing in the country. 

According to recent findings shared with Finbold on March 7, Apple represents 15% of Russian smartphone sales, placing it third overall in the country based on vendor sales. Samsung, based in South Korea, is in first place with 34% of the market, followed by Xiaomi, which is in third place with 26%, as per data supplied by Burga.

Elsewhere, Realme has an 8%, followed by Poco with a 3% share, and various smaller companies account for the remaining 14%.

Apple smartphone sales in Russia. Source: Burga

It’s also worth mentioning that Russia’s smartphone sales were estimated to be around 730 billion rubles ($7.6 billion) in 2021. As a result, according to Burga’s calculations, Apple stands to lose an estimated $3 million in iPhone sales income every day, or $1.14 billion per year, if the trend continues. Based on Apple’s most recent documented Russian market share as well as the company’s income from sales as of 2021.

Russia’s smartphone sales continue to increase

Given that Russia’s overall smartphone sales revenue has increased substantially over the previous several years, the amount of money Apple could lose is likely to be more. 

The revenue was expected to reach 570 billion rubles ($5.93 billion) in 2020, compared to 500 billion rubles ($5.2 billion) in 2019. Notably, between 2014 and 2021, the amount has increased by about 200%.

However, according to the report:

“There is a likelihood Apple might not feel a pinch on the financial side by simply standing with Ukraine. Apple might receive positive attention, and it could draw new customers who share the same stand on the conflict.”

Following Apple’s stance on Russia, other companies, such as Samsung, have felt the temptation to follow suit and cease shipping products to the nation. 

As a result, the leaving of the two manufacturers may provide a window of opportunity for Chinese operators who are likely to remain in their current locations. 

Nonetheless, such businesses may be subjected to the consequences of any subsequent sanctions, which may include a ban on corporations from operating in Russia while using technology originating in the United States.

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Jordan Major
Author

Jordan is an investor and market analyst. He's passionate about stocks, ETFs, blockchain, and digital assets. At Finbold.com, he delves into the technicalities to obtain future trends for new market traders and gives insights into user-friendly platforms for beginners.

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