Apple-Megafon deal guarantees 750,000 iPhone sales over three years

Russian mobile operator Megafon has disclosed some details of its agreement with Apple Rus, the local subsidiary of Apple, reports Vedomosti. Megafon plans to purchase 750,000 units of the iPhone to sell in its branded retail chain by the end of 2016. Megafon has also committed itself to spending around RUB 1 billion on promoting and advertising the iPhone during this term. Rival Beeline also has a direct contract on iPhone supplies with Apple. 

Russia’s second largest carrier Megafon said its iPhone agreement with Apple requires it to sell 750,000 iPhones over three years and spend $28 million on marketing and promotion through 2016. The terms of the agreement were spelled out in the carrier’s 2013 financial report, which was released this week and reported by Reuters. The details illuminate the type of agreements Apple makes with carriers. By specifying aggressive minimum sales and incorporating co-marketing budgets, Apple aligns carrier’s goals with its own.  Reuters cited Sergei Libin, an analyst at Raiffeisen Research, as describing Megafon’s minimum iPhone sales volume as “reasonable,” adding that “I would not say it could sell much more than this.”