Megafon strikes deal to sell Apple iPhone in Russia

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Russia's third largest mobile operator Megafon has signed an agreement with U.S. company Apple to sell the popular iPhone 3G handset in Russia, Megafon said Tuesday.
MOSCOW, September 2 (RIA Novosti) - Russia's third largest mobile operator Megafon has signed an agreement with U.S. company Apple to sell the popular iPhone 3G handset in Russia, Megafon said Tuesday.

Russia's second largest mobile operator VimpelCom reached a similar agreement with Apple in late August. Market sources told RIA Novosti that Russia's largest operator MTS had also struck a similar distribution deal on the iPhone.

Russian business daily Vedomosti earlier reported that the U.S. company's hugely popular iPhone 3G could go on sale in Russia in October. The paper said that according to unnamed sources, Russia's top operators - VimpelCom, MTS and Megafon - have committed to selling some 1.8 million iPhones in the country per year.

Unofficial sales of the handset, considered a must-have item by Russians, including President Dmitry Medvedev who is rumored to have one, have boomed on the country's so called gray market since the iPhone was first launched in 2007.

One of the biggest hurdles for Russian operators to signing a deal was agreeing how much the "big three" were prepared to hand over to Apple for distribution rights for the iPhone.

Although the main players in the deal declined to comment, Pyotr Semenov from Maczone, Apple's official dealer in Russia, told Vedomosti that talks were ongoing to sell the handset through their outlets with all three operators.

One source said the iPhone, retailing for $199/$299 with a contract in the U.S., would go on sale in Russia for around $1,000 on a non-contract basis or for a $200 down payment under contract.

Global sales of the new iPhone 3G hit over 1 million in the first three days of its July launch. Analysts predict unofficial and official sales of the handset in Russia could reach 700,000 alone in 2008.

Apple launched its new 3G iPhone in July, which offers improved and faster Internet access, e-mail and GPS, and company CEO Steve Jobs pledged that the phone would go on sale in Russia, one of the world's fastest growing mobile markets, by the end of the year.

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