Apple stopped selling iPhones and other products physically in Russia after the country invaded Ukraine. Apple's move could result in significant losses.
According to Burga's calculations, the manufacturer of mobile phone casings, Apple could lose USD 3 million per day just from iPhone sales alone. In total, Apple could lose USD 1.1 billion in one year.
In its calculations, Burga refers to Apple's market share data in Russia in Q3 2021 (15%) and mobile phone sales figures in Russia in 2021 (USD 7.6 billion).
Based on the data, Burga estimates Apple's revenue from the iPhone in Russia in 2021 at USD 1.14 billion. When divided by 365 days in a year, the figure is USD 3.1 million per day, as quoted from ZDNet, Thursday (10/3/2022).
That figure is actually not that big for Apple, given that the Steve Jobs company grossed USD 123.9 billion in the last quarter alone. But there are several factors to consider.
First, Apple's growth in Russia has been very rapid lately. Between 2014 and 2021, iPhone sales in Russia jumped 200%, and according to current IDC data Apple is the third largest vendor behind Samsung and Xiaomi.
There are also losses related to other services and products. The services offered by Apple are the second largest revenue contributor after the iPhone, so there will likely be an impact.
"On the other hand, Apple's exit from Russia puts a difficult relationship between the two entities," Burga said in his report.
"Russia in particular has previously implemented policies that must be adhered to by companies such as Apple. Apple recently complied with its mandate to open an office in Russia to offer online services there," he continued.
In addition to stopping selling iPhones and other devices, Apple is also restricting its services such as Apple Pay in Russia. They also restricted the Apple Maps feature in Ukraine to protect the safety of citizens.
The iPhone maker also blocked two applications belonging to the Russian media, RT News and Sputnik News, from the App Store. Both applications cannot currently be downloaded outside of Russia.
