Apple Will Have to Change the Way They Do Business for Emerging Markets

If you look over at TechCrunch today, they have an interesting article on how the largest carrier in Russia is fighting with Apple to get a reasonably priced iPhone for their market. Current smartphone penetration in Russia is only estimated at 15%; however, that number is expected to jump to 60% by 2014. According to the TechCrunch article, the VP of strategy and corporate development of OAOMobile TeleSystems (MTS), Michael Hecker, believes a price reduction would help Apple take advantage of the huge vacuum of smartphones in emerging markets. iPhones can cost up to $1000 in the Russian market, a completely ridiculous price. The argument from Tim Cook, Apple CEO is that, he: ”firmly believe[s] that people in the emerging markets want great products like they do in developed markets. The goal is to make the very best product, and that’s more important and overshadows all other things.”

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