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Apple reportedly in ‘preliminary contact’ with distributors to bring iPhone to Iran

The Wall Street Journal reports that Apple is in early talks with “Iranian distributors” to bring the iPhone to Iran:

Apple Inc. is in preliminary contact with Iranian distributors about a possible entry into the country should Western sanctions ease sufficiently, people familiar with the matter said.

The report notes that financial and banking sanctions as well as political tension has thus far prevented companies like Apple from conducting business in Iran, but points to a policy change in May that lifted the ban on sales of “consumer communications technologies” in the country. The report goes on the claim that “senior Apple executives” have already met with “potential Iranian distributors” at Apple’s regional headquarters in London.

In the conversations, the Cupertino, Calif., company explored the possibility of having Iranian partners sell Apple products at so-called premium resellers, three of the people said. Instead of company-operated Apple stores, such outlets would be midsize franchisees that sell Apple products only, —a model the company has used in Europe and Asia, the people said.

In addition to meeting with potential distributors from the region, the WSJ reports that Apple has been in talks with the U.S. Treasury’s Office of Frozen Assets Control to the possibility of conducting business in Iran.

Apple has consulted the U.S. Treasury’s Office of Frozen Assets Control to assess under what conditions it could start operations in Iran or how it could pursue a formal relationship with Iran-based customers, according to two people familiar with the matter. Such contacts have involved discussions over how to seek U.S.-government clearance to repair products purchased in Iran or send spare parts.

The report adds that despite existing sanctions, communication between executives of United States-based companies and Iran-based companies is not barred, although such talks are unpopular due to political tension.

Apple’s potential market for exporting the iPhone to Iran is already visible, the WSJ notes, as an existing black market and even some upscale retailers currently own iPhone and iPad distribution in the country. The Wall Street Journal also points out the potential 77 million customers in Iran with 42% of the population under 25 with a large middle class.

In its most recent earnings report, Apple shared that 60 percent of its revenue for the quarter came from international sales.

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Comments

  1. AliReza Sadeghi - 10 years ago

    This is the best tech related news I’ve ever heard, Iran is already filled with iDevices and you can see them in like “Everywhere”, but they’re all sold illegally and much more expensive than they really are.An official Apple retail flow can be the best way to increase the number of Apple users in the country (mostly by decreasing the prices of the black market, selling mostly smuggled devices at a much higher price). As an example the current price of an iPhone 6 128Gb in Iran is well more than 1400$ and that, can really shrink by this move from Apple.

  2. While they are at it, why don’t they also consider doing business with Libya, Cuba and North Korea?

    • Alborz Heydaryan - 10 years ago

      they shouldn’t, because the relationship between Libya, Cuba, and north Korea is still the same, while the new president in Iran is pushing for better relationships with the west.

    • Libya doesn’t have broad trade sanctions anymore, they ended in 2004. Although being in the midst of a civil war, it would be hard to do business there.

      North Korea wouldn’t want Apple’s business anyway.

      Cuba… shouldn’t have sanctions any more than China or Vietnam should – its silly we still impose them – but I suppose technically Cuba still clings to hardcore communism whereas other “communist” countries have embraced semi-free markets while still having one-party rule.

      Iran is a relatively middle-class country, despite being a theocratic state, with a population that loves technology, has an infrastructure to support it, and already enthusiastically buys Apple products on the secondary market.

    • They should. Free trade is the best preventative for conflict.

  3. Taste_of_Apple - 10 years ago

    Bid deal if it happens.

  4. Amir 2.9 (@AmirGbg) - 10 years ago

    Great news. Sanctions have never been an effective way of treating any country or conflict, ever.

    • So how do you treat a country that puts people to death for their sexual preference among other human rights violations? Great news? really?

      • Harsh criticism, I suppose. Perhaps targeted sanctions or specific economic punishments. Its these broad-based, total, and non-specific economic sanctions which are ineffective, because they give such governments a perfect scapegoat for all their other problems, and further sour the population against the very Western culture (one of tolerance and normalization for LGBT people) that we’re seeking to advance.

      • That’s frankly none of Apple’s business, concern, purview, nor otherwise. The best way to influence a nation is to trade with them.

  5. Inaba-kun (@Inaba_kun) - 10 years ago

    Classy stuff Tim. You just keep counting those profits while Iran hangs rape victims.

    • Exactly! If true Pllw is stooping to an all time low for even thinking to do business with a country like this. Shameful!

    • Exactly! How shameful of Apple to even think of doing business with a country like this.

    • China commits tons of human rights atrocities too. So does Saudi Arabia. Russia “disappears” gay people. Its even downright illegal to be gay in Jamaica. Apple does business in all those countries, and many others that don’t share the ideals of liberal, pluralistic, democracy.

  6. bunim1 - 10 years ago

    What shouldn’t Iran get it? What did the people do wrong to be deprived? I don’t believe all the people are corrupt. The government isbanother story.

    • Precisely. Some might want to look a little closer to home to their own police force that wantonly murders, rapes, and destroys the functional lives of Americans every minute of the day. People that live in glass houses should not be throwing stones.

  7. mathewmower - 10 years ago

    Iran!?!? I just wish they would fill the iPhone 6+ orders for the US. My estimated deliver date sti shows 11/14. I’m thinking of canceling my order and waiting for the iphone7. =8(

  8. Sina Miandashti - 10 years ago

    i bought iphone6 64gb with local price 330000 Tomans … -> 1 $ = 3300 tomans -> my iphone -> 1000$ … :| …. apple .. plz come to iran … we need an official appstore

  9. empresstrudy - 10 years ago

    Are you sure that’s a good idea given their somewhat less than friendly approach to Gays and Jews?

Author

Avatar for Zac Hall Zac Hall

Zac covers Apple news, hosts the 9to5Mac Happy Hour podcast, and created SpaceExplored.com.

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