Apple’s iPhone 16 make their way to Russia as retailers bypass company’s export ban – report

Retailers in Russia have begun pre-sales of Apple’s (NASDAQ:AAPL) new iPhone 16 models, bypassing the company’s export ban to the country, but the phones would cost hundreds of dollars more than they do in the U.S., Reuters reported.

On Thursday, Russian e-commerce and consumer electronics retailer M.Video-Eldorado and mobile network operator MTS claimed to be the first in Russia to launch the new iPhone 16, the report added.

M.Video noted that phone deliveries would start from next week, while MTS expects physical sales to start soon.

Apple halted sales of its products in Russia in March 2022 and suspended services such as ApplePay following Russia’s invasion of Ukraine, while the West’s sanctions aimed to curb technology exports to Moscow.

Foreign companies which halted exports to Russia now reach customers, usually through countries which have not imposed bans on Russia, such as China, India, Turkey, United Arab Emirates and Kazakhstan. However, the news agency could not determine which route into the country the new smartphones would be taking, the report noted.

M.Video stated that prices would begin at 112,999 roubles (about $1,225) for the 128GB iPhone 16, the U.S. price of the phone is $799. The 1TB iPhone Pro Max was available for pre-order for 249,999 roubles (around $2,710), over $1,100 more than the U.S. price of $1,599.

Prices by MTS were slightly higher than M.Video’s and it said it needed a 25,000-rouble deposit for pre-orders, according to the report.

Russia has told officials to stop using iPhones, noting that intelligence agencies of the West have compromised them with surveillance software. Apple has denied such claims, the report added.

The ‘gray’ import scheme, endorsed by the Russian government for brands which left Russia after the invasion, keeps the products of the companies available. Western goods and technology remain popular in Russia, however, Moscow wants to reduce this potential vulnerability with local manufacturing, the report noted.

Reviews of iPhone 16 have been largely positive as reviewers found a lot to like about the product, including longer battery life, larger screens (on the Pro models) and an upgraded camera, even though Apple Intelligence is not yet available.

However, demand for the phones in China has been slow. Reportedly, online retailers in China have cut the prices of the iPhone 16 series ahead of its official launch. The discounts indicate soft demand for Apple’s new phones in China, which is the world’s largest smartphone market and also one of the most competitive.