New iPhone 16 Unveiled in Russia as Retailers Navigate Apple’s Export Ban, Reports Reuters

Moscow – Russian retailers are now offering pre-sales for Apple’s latest iPhone 16, navigating around the company’s export ban to Russia. This allows consumers to pre-order the devices at prices significantly higher than those in the United States.

Major Russian electronics retailer M.Video-Eldorado and mobile network operator MTS both announced on Thursday that they would be the first in the country to provide access to the new iPhone 16. M.Video stated that deliveries would begin as early as next week, while MTS indicated that physical sales would follow soon.

Following Apple’s suspension of product sales in Russia in March 2022, alongside the halt of services like Apple Pay due to the invasion of Ukraine and the resulting Western sanctions aimed at limiting technology exports to Russia, the situation has become increasingly complex.

Consumers in Russia will find themselves paying several hundred dollars more for the iPhone 16 compared to their U.S. counterparts. Foreign brands that previously stopped exports to Russia are now seeking alternative routes to reach their customers, often via countries that have not imposed sanctions, including Turkey, Kazakhstan, China, India, and the United Arab Emirates. However, the specific routing of the new iPhones entering Russia has not been disclosed.

The Russian government has supported a parallel import scheme for brands that exited the market after the invasion, which allows the continued availability of their products, highlighting the challenges companies face in managing supply chains when leaving a market.

M.Video has announced that the starting price for the 128GB iPhone 16 will be 112,999 roubles (approximately $1,225), over $400 more than the U.S. price of $799. Additionally, the 1TB iPhone Pro Max is available for pre-order for 249,999 roubles (around $2,710), compared to the U.S. price of $1,599. MTS’s prices are slightly higher than those of M.Video and require a deposit of 25,000 roubles for pre-orders.

Despite the restrictions, Western goods and technology continue to maintain their popularity in Russia, presenting a potential vulnerability that the Russian government aims to mitigate through increased domestic production.

The Kremlin has also instructed officials to discontinue the use of iPhones, citing concerns that Western intelligence agencies have compromised the devices with surveillance software, a claim that Apple has denied.