On Tuesday, the news splash hit the Russian market when Apple halted its e-sales of iPads and iPhones as the Ruble value plummeted than the value of dollar in Russia
“Due to extreme fluctuations in the value of the ruble, our online store in Russia is currently unavailable while we review pricing,” “We apologize to customers for any inconvenience.” Apple spokeswoman Kristin Huguet said in a statement.
After the Russian central bank even raise the interest rates 10.5 to 17 per cent piercingly to uphold the currency value, which drastically fall up to 20% on Tuesday, but the ruble’s value fall with more than 60% since January. The fall in value of ruble is due to sudden decrease of oil prices in a market which is important pillar in Russia economy.
California based Apple Cupertino; said on Tuesday that it’s very much difficult for us to set our product prices in Russia while knowing that ruble’s instability in market will close the Apple online store in Russia.
This is serious Russian turmoil of currency. Apple has increased its prices 25% in iPhone 6 to accord with the fluctuation trend of ruble in market last month.
Andrew Bartels, The Forrester Research principal analyst said:
“I would expect that a company like Apple, which tends to be fairly well tuned into political situations, would have been looking at the tea leaves and reading and saying, ‘Let’s maybe be very, very conservative and cautious about our plans in Russia.
“The bottom line is that right now this is a good time for any tech vendor to pull back, hunker down and wait for a better opportunity,” he said.
Apple is always been the main aqueduct to consumers of Russia. It sells its innovative products like Iphones, Tablets, smart phones through the carriers and retailers of Russia but it don’t acquire its Apple stores in Russia. According to the researcher of IDC, Apple’s iPhone and other 6 plus products sale in Russia were amplified last year as compared to current year. The number of units sales of Apple products decline from $1 billion units to 1.57 million units this year.
Although the sale per units of Apple products decline but it’s existence is much important in a country as Russians always influence from the western pop culture and technology and Apple is best to represent that Western ecosystem in Russia. Says Envision ring Group, Research director, Richard Doherty.
After Apple, the other technological companies would follow the law and among them Hewlett Packard and Lenovo are in top who would act similar to Apple store in Russia as ruble value fluctuating sharply could affect the company sales revenue.
“I expect by the morning we are going to hear about other companies who have to do something similar,” Doherty said.
The ruble trouble has also severely affected the global market of software development as Russia acquire majority of the programmers of world which are working inside the country as working unit.
“If the economy and the ruble have spooked Apple like this, you could probably see some changes in software schedules from music services, Uber-type companies and other companies,” Doherty said.