Despite the iPhone 16 series being priced much higher in Russia than in Western markets, consumers are eager to purchase the latest iPhone, with preorder demand up 15% year-on-year.
The iPhone 16 and iPhone 16 Pro are now officially available, and consumers worldwide are checking out Apple's newest smartphone offerings. While demand for the iPhone 16 generation is generally high globally, it is particularly strong in Russia, despite the significant price disparity. According to a retailer interviewed by Reuters on Friday, preorders for the iPhone 16 were up 15% compared to the iPhone 15 from the previous year, said a spokesperson for electronics retailer Restore.
This stands in contrast to the much higher iPhone prices in Russia compared to the United States. Apple halted sales in Russia in March 2022 following the country’s invasion of Ukraine. However, despite Apple’s exit from the Russian market, iPhones continue to flow into the country through "parallel imports." This import mechanism, which does not require manufacturer authorization, allows retailers to source iPhones from countries like Turkey, China, India, and other former Soviet states and bring them into Russia.
One result of this grey market activity is a significant price hike. In Russia, iPhones are sold for at least 50% more than in Western markets, which poses a considerable challenge for consumers. Still, demand remains high. For example, the 128GB version of the iPhone 16 starts at 112,999 roubles (about $1,225), more than $400 higher than the U.S. price of $799. The 1TB iPhone 16 Pro Max, meanwhile, costs 249,999 roubles (about $2,710) in Russia, compared to $1,599 in the U.S.
Besides import issues, Russian users have faced additional difficulties using their iPhones since Apple’s exit. Apple disabled Apple Pay in Russia, and many banking apps and other software have been removed from the App Store. At the same time, the Russian government has targeted Apple with accusations of aiding U.S. espionage on Russian users. In fact, the Federal Security Service (FSB) of Russia ordered thousands of officials to stop using iPhones and other Apple products.
Despite these obstacles, demand for iPhones in Russia remains strong, reflecting the continued popularity of Apple products among Russian consumers.