Apple stops online sales in Russia as the ruble drops to new lows
posted by Alan F. / Dec 16, 2014, 7:35 PM
Foreign companies doing business in Russia, like Apple, are finding that the rubles they collect from Russians purchasing their wares, are worth a lot fewer dollars when converted. As a result, proper business doctrine would suggest that Apple raise the prices of the devices it sells on its Russian online store. For example, last month Apple raised the price of the Apple iPhone 6 by 25% in Russia.
With the ruble declining so sharply, Apple would need to keep reviewing the pricing on its online store in Russia to prevent it from taking currency losses on its sales. Instead of changing prices numerous times a day, Apple came to the decision that it is in its best interest, and the best interests of its customers, to just halt sales for the time being. Otherwise, Apple would have to price itself out of the market in Russia.
Posts: 699; Member since: May 19, 2011
What does rain in California have to do with Russian Rubles and IPhone sales?
posted on Dec 16, 2014, 7:42 PM 7
Posts: 2486; Member since: Jan 26, 2014
Lol, I know, right?...
posted on Dec 16, 2014, 7:49 PM 0
Posts: 20; Member since: Oct 16, 2014
Russia's economy has been plummeting for the past 6 months and you guys were too busy ignoring all the signs. My country's economy isn't plummeting, so nothing like this will happen here any time soon. Most of Russia's budget revenue sits in oil and now that oil prices are tanking, so is the economy. Add in the effect of foreign capital leaving and no loans due to sanctions and you have a recipe for disaster.
posted on Dec 17, 2014, 6:15 AM 0
Posts: 1408; Member since: Jul 06, 2014
Many of my customers are going to travel to Moscow and buy some cheap luxury goods and they invited me in as well. Thanks to rubles drop, everythings there are cheap. We're here to boost Russia economy
posted on Dec 16, 2014, 7:45 PM 2
Posts: 2486; Member since: Jan 26, 2014
I see no reason for them to stop selling it there, as the drop of the ruble pretty much compensates for the overpriced-ness of the iPhone...
posted on Dec 16, 2014, 7:48 PM 2
Posts: 1774; Member since: Jul 30, 2013
They are not stopping the sales of apple products in Russia. LOL they just paused them until they figure out when will the ruble stop goin down like crazy so they can resume with new adjusted prices.
posted on Dec 17, 2014, 6:03 AM 0
Posts: 537; Member since: Sep 10, 2014
rubles rumbling down. But why Apple did not slash its price in countries that has their currencies shooting up? Not playing fair huh.
posted on Dec 16, 2014, 7:58 PM 5
Posts: 6474; Member since: Jan 28, 2013
Exactly, when currencies go up they just pocket it. When it goes down the consumer has to pocket it. Sure all companies do this but that is because they have to. Apple has over a 100 billion in liquid assets and they still can't pass anything to the consumer. No one should support this company. It's ridiculous.
posted on Dec 16, 2014, 8:31 PM 3
Posts: 1129; Member since: Feb 15, 2013
think like a businessman and you'd realize why they do things that way. besides, why should they feel obliged to price their products according to how economies/currencies move? what they're selling is not a basic necessity. nobody's forced to buy iphones and ipads. it's not food or fuel. they can price their products to get the best profits possible.
posted on Dec 16, 2014, 9:10 PM 2
Posts: 196; Member since: Mar 29, 2012
some good point you're making here, but even for basic necessity it does not work this way. In my country, the gas price will immediately go up when the petrol proce increase (is like they don't have any stoc), but when the price goes down, like these days, you barely see it at the pump.
posted on Dec 17, 2014, 1:47 AM 0
Posts: 724; Member since: Jun 10, 2014
They obviously will at some point; otherwise citizens in said countries will start ordering Apple products from abroad. It's the same effect, only it's impact is obviously doesn't hit as hard and fast...
posted on Dec 16, 2014, 11:29 PM 0
Posts: 339; Member since: Mar 16, 2013
'Apple would have to price itself out of the market in Russia.' So they just did what they were worried about doing, I don't get it but then I'm not payed millions a year so what do I know.
posted on Dec 16, 2014, 8:09 PM 1
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