Apple CEO Tim Cook delivered the keynote address at Apple’s 2020 World Developers Conference (WWDC) at the Steve Jobs Theater in Cupertino, California.
Brooks Kraft / Apple Inc / Handout via Reuters
BARCELONA – Apple’s decision to stop selling products in Russia is putting pressure on other smartphone makers to do the same, analysts say.
Apple announced its decision on Tuesday, along with a number of other actions in response to Russia’s invasion of Ukraine. All Apple products in the company’s online Russian store are listed as “unavailable” for purchase or delivery in the country. Apple does not operate Apple’s physical stores in Russia.
The move “absolutely” puts pressure on rival companies like Samsung to follow, CCS Insight chief analyst Ben Wood told CNBC on Wednesday. Samsung did not immediately respond to CNBC’s request for comment.
“It’s important that they make a statement,” Wood said of Apple. “They lead the way,” he said, adding that some of Apple’s competitors sell significant volumes in Russia.
Apple also said it had removed Russian state-owned RT News and Sputnik News from its App Store in countries around the world except Russia.
The Cupertino-based tech giant is in a “strong position” to take action, Wood said. “It’s a big player in the technology space and one of the most valuable companies in the world.”
The iPhone accounts for approximately 15% of the Russian smartphone market, according to Counterpoint Research, which said Apple sold about 32 million iPhones in the country last year.
Anschel Sag, chief analyst at Moor Insights and Strategy, told CNBC that Apple’s move “could force others to follow suit.”
Given that Russia is not a major market for Apple, it is unlikely that the company’s actions will have a significant impact on the company, according to Wood. “Their business is so big that it’s very sustainable,” he said. “The loss of this revenue will not have a catastrophic impact on the business.”
Technical analyst and investor Benedict Evans said financial sanctions and currency instability may also have made it difficult for Apple to sell its products in Russia. In fact, Apple halted sales in Turkey in November when the pound collapsed.
“The roll fell by 30% yesterday [on Tuesday]so it’s not clear what price they should charge for the iPhone, and bank sanctions make it difficult or impossible to transfer money from sales there outside the country, “Evans told CNBC.” So no matter what the policy, there are major practical difficulties for anyone who imports goods into Russia at the moment. “
Evans also noted on Twitter that Apple has no problem doing business in China, adding that “it’s always easier to stand up when it’s not 20% of your revenue and most of your production.” .
On Tuesday, Deputy Prime Minister of Ukraine Mikhail Fedorov called on Apple CEO Tim Cook to complete the work and block access to the App Store in Russia. On Wednesday, he called on Microsoft’s Xbox and Sony’s PlayStation to stop supporting Russian markets and “temporarily blocks all Russian and Belarusian accounts.”
Companies around the world are rapidly withdrawing from Russia as governments impose sanctions on the country. As Western countries withdraw their support, Chinese companies such as Huawei and Xiaomi may be able to push deeper into the country.
“The Chinese are well established [in Russia] and trade links seem to remain open, “Wood said.” That could be an opportunity. “