MTS complains of high iPhone pricing, Apple control | iLounge News

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MTS complains of high iPhone pricing, Apple control

Russian carrier MTS has publicly complained about Apple’s iPhone pricing in the country, as well as the company’s policies on how it’s sold. Bloomberg reports that MTS’ vice president of marketing, Vasyl Latsanych, was in New York for an event, and used the forum to express frustration over the iPhone’s price, as well as Apple policies that demand carriers’ retail locations to meet certain standards. “They’re more in a dictatorship mode where they say, ‘This is what you have to do or you don’t get the iPhone,’” said Latsanych. “Being arrogant with your partners in big markets doesn’t pay off.”

Michael Hecker, MTS’s vice president for strategy and corporate development, commented at the same event that Apple would be able to gain a larger share of the Russian market if it dropped the price or helped to subsidize the handset. “If Apple showed more flexibility then they would have a higher penetration in our markets,” Hecker said. The company later issued a statement through its representative Joshua Tulgan, saying “while we have differences with Apple, we have a constructive relationship. Smartphones like the iPhone are important to our customers and our economy and we want to get them into the hands of as many people as possible.”

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Comments

1

This is the first time that a carrier has expressed frustration openly. There have been rumors that the carriers are grumbling at Apple’s strategy.

The choice is simple - do not carry the iPhone. Why carry on if you do not agree with the arrangement? Apple isn’t forcing you to do business with them.

I do agree about penetration though. Since the iPhone is not subsidized here in India, it is pretty expensive, so Apple will not see the kind of sales it is expecting in China here anytime soon.

Posted by Sreedhar on July 31, 2012 at 2:10 PM (CDT)

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