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Mon, 16 Jun 2008 Apple iPhone for Russia this year

Russian networks to carry iPhone by the end of 2008

Jonny Evans

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Apple's moving toward clinching a deal to ship the iPhone in Russia, where the market for unlocked iPhones already sees them change hands for $1,000.

iPhones are in huge demand in Russia, which boasts a growing and affluent moneyed class. The fact Apple didn't announce a deal to bring the iPhone to Russia directly was noted last week - but that's set to change, notes the Moscow Times.

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Apple CEO Steve Jobs told CNBC: "We just didn't have a chance to close a deal with Russia. And I think you'll see agreements happen later this year."

"About 20,000 iPhone handsets are brought into the country in suitcases every month," Eldar Murtazin, editor of Moscow-based Mobile Research Group told the Moscow Times. "The current model, which sells officially in six countries for a marked-up $399, currently sells for about $1,000 in Moscow."

Two of Russia's three leading mobile operators, Mobile TeleSystems and MegaFon, have confirmed to having talks with Apple, but no final commitment has been reached, partially because of Apple's insistence on revenue-sharing.

Russia's second-largest network, VimpelCom, may also make a bid to carry the iPhone as the network moves to switch on its 3G network in Russia this year.

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