Russian retailers, experts deny iPhone price coordination

MOSCOW, Aug 9 (PRIME) -- Russian electronics retailers deny any coordination in forming iPhone prices, the main reason behind a recent antitrust investigation, and experts also doubt Apple’s possible manipulations, companies and people with the knowledge of the matter told PRIME late Monday.

“(Electronics seller) Eldorado said it sets prices according to the market situation. Contract terms with suppliers cannot be publicly commented or discussed,” PR Director Irina Tseplinskaya said. Prices of the iPhone 6s are not a secret and can be checked at stores.

The retailer received a number of inquiries from the Federal Antimonopoly Service regarding Apple’s products, and Eldorado responded duly.

The antimonopoly watchdog brought charges against Apple on Monday for alleged coordination of prices of 16 resellers of the iPhone that resulted in flat retail prices.

Online store Ozon also received an inquiry from the service. “The order of price forming is part of the company’s internal policy. When setting prices we take into account market prices; we are in constant dialogue with suppliers to improve purchasing prices and respect our own interests, but we also try to offer an advantageous price to our customers,” an Ozon spokesperson said.

Retailer Media Markt said it also received inquiries from the antimonopoly service in December 2015–April, and the company provided the authority with all information requested on the iPhone 6s and the iPhone 6s Plus.

“There is no such coordination. It is impossible in the Russian environment. Apple sets the same wholesale price for everyone; the company has also a recommended price for retail, which is not banned by law,” Mobile Research Group’s leading analyst Eldar Murtazin said.

Analytical agency TelecomDaily’s Director Denis Kuskov agreed with Murtazin. “Apple sells (products) to retailers at a certain price, and each of them has a margin from sales; nobody would sell for nothing, at a loss; they cannot work with losses,” Kuskov said.

Murtazin said that when a new gadget appears on the market, its stock is limited, and all retailers try to stick to a recommended price as a guideline. With higher prices, customers would go to competitors, while lower prices would make sales unprofitable. Prices fall below the recommended level with a higher supply as sellers offer discounts and bonuses, the analyst said.

“The Federal Antimonopoly Service refuses to understand it as a discount and says Apple coordinates prices. It’s an ultimately politicized decision,” Murtazin said.

End