the reason behind windows phone’s dominance in some geographies
March 27, 2013
Posted by on
via daringfireball, Nick wingfield points to places in the world where Windows Phone is outselling iPhone. Gruber notes, correctly, that these are not Apple strongholds. Blackberry is also extremely popular in those geographies.
What is special about those places? Is it that they have some cultural quirk that prevents them from appreciating iOS?
No. It’s about exchange rates and import controls.
Imports to Argentina, for example, are effectively frozen. People can’t get all sorts of things, from books to electronics. Simple kitchen appliances are in some cases hard to come by. Anecdotally, I can say with some degree of certainty that people would love to get Apple products, and yet Apple products are in extremely short supply since the government denies import licenses unless you export the same amount. Car companies export grains so they can bring in cars. RIM set up a factory in the country just so they could sell phones (you can imagine Apple, given its size and scale, didn’t bother).
As reference, see this businessweek article:
After months of negotiations, [BMW] figured out a fix. The government agreed to let in BMW’s vehicles as long as the company’s Argentine subsidiary exported an equivalent amount of upholstery leather, car parts … processed rice. Echeagaray worked a deal with the Ministry of Industry to get the necessary import permits.
Russia and India are not exactly the same story but match shades of it. The exchange rate factor is a big issue too (more so in Russia and India than in Argentina) — cost of Apple products translates more directly in dollar terms, since they are manufactured in a few locations worldwide and then priced in dollar terms, as opposed to in the local manufacturing and pricing in local currencies. This makes them expensive. No doubt Apple is making a conscious decision here to avoid devaluing their products in real terms.