The Wall Street Journal has reported that Apple Inc. is in early stage discussions with distributors about the possibility of selling Apple products in Iran. According to people familiar with the situation, senior Apple executives have met, at their company’s headquarters in London, with prospective distributors from Iran.

The people also said, “In the conversations, the Cupertino, Calif., company explored the possibility of having Iranian partners sell Apple products at so-called premium resellers. Instead of company-operated Apple stores these outlets would be midsize franchisees that sell Apple products only, a model the company has used in Europe and Asia. The contacts have involved over a dozen Apple employees, including technical and marketing professionals”.

In May, the U.S. lifted the sanctions it had imposed on Iran, which prohibited the sale of consumer communications equipment and software.

Despite sanctions being in place for years, the business of selling Apple gear in Iran has been booming.  Reuters reported in July 2012, “Although they are banned, enterprising Iranian merchants continue to source them through underground trade routes in the Middle East and beyond”.

With a population of 77 million, with 42% under 25 years old, Iran is likely to be an attractive market for Apple.

Apple may face various obstacles if-and-when it attempts to sell its devices in Iran, including banking restrictions and locating sufficient mobile-service providers.