Apple may lose at least $3 million in iPhone sales revenue per day, or $1.14 billion annually, as a result of its decision to withdraw from the Russian market in the aftermath of Ukraine’s invasion.
According to Burga, a Lithuanian online shopping portal, the figure is based on Apple’s most recent Russian market share and the company’s revenue from sales in 2021.
“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,” said the report.
Although Russia does not account for a significant revenue share for Apple products, the tech giant’s exit will almost certainly have an impact on the country’s growing smartphone sales.
According to the data presented by Burga, Apple accounts for 15% of Russian smartphone sales, ranking third overall.
Samsung of South Korea takes the top spot with 34%, followed by Xiaomi in third place with 26%.
According to the Burga report, Realme has an 8% market share, Poco has a 3% market share, and other smaller brands account for 14%.
In addition, as of 2021, Russia’s smartphone sales were worth?730 billion ($7.6 billion).
Given that Russia’s overall smartphone sales income has risen steadily in recent years, Apple’s revenue loss could be higher.
In 2020, revenue was expected to be $5.93 billion, up from $5.2 billion in 2019.
Between 2014 and 2021, the figure increased by nearly 200 percent.
Following Apple’s decision on Russia, other companies, including Samsung, have 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,” the report noted.
