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Original poster
Apr 12, 2001
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Apple yesterday re-opened its Russian online store front with significant price hikes to compensate for changes in the value of the ruble. Apple last week closed the store to review its pricing after a dramatic drop in the ruble, which lost as much as 30 percent of its value.

iphone-6-russia-800x324.jpg

According to Bloomberg, the entry-level 16GB iPhone 6 now costs 53,990 rubles (around $991), a 35 percent increase from the previous price tag of 39,900 rubles. Apple also is selling the 16GB iPhone 6 Plus for 61,990 rubles ($1,138) and the entry-level MacBook Air for 77,990 rubles ($1,431).

This isn't the first time Apple raised its prices in its Russian online store. The company also hiked the cost of its products by as much as 25 percent in November following an earlier drop in the ruble. Following the two price hikes, the cost of the iPhone in Russia has spiked almost 60 percent in the past month.

Article Link: Apple Reopens Russian Online Store With 35 Percent iPhone Price Increase
 

Mtmspa

Suspended
May 13, 2013
1,006
783
Did you see any companies increase price by this amount? Greed is greed..Apple is a giant money grabbing machine and yet evading taxes like no tomorrow

Blame Putin. And don't be mad that Apple is worth more than your beloved mother Russia.
 

lincolntran

macrumors 6502a
Jan 18, 2010
843
471
Apple, the most greddy companies since 1976.

I wish you'll open a company selling something in the future. I know I'll get super good price from you.

And I love that the government is so grateful with our tax money they spend it so carefully.
 

croooow

macrumors 65816
Jul 16, 2004
1,044
206
Did you see any companies increase price by this amount? Greed is greed..Apple is a giant money grabbing machine and yet evading taxes like no tomorrow

I would think other companies from outside Russia with a direct interface in Russia (like store.apple.com/ru) would have to do the same. Here is why:

The value of the currency used in Russia has fallen.

If you sell something for X number of rubles one day and the value of the ruble goes down (which it just did) then the amount you make goes down as well. A small decrease here and there is expected but not 30%. They increase the cost (just in Russia) to adjust for that decrease. They are not just making the phone cost more there.

Apple's job is to make money (Shareholders want that) so they cannot just eat the loss.
 
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Tubamajuba

macrumors 68020
Jun 8, 2011
2,124
2,224
here
Did you see any companies increase price by this amount? Greed is greed..Apple is a giant money grabbing machine and yet evading taxes like no tomorrow

I don't know what other companies are doing. I just know that it makes perfect sense to raise the prices of your products when the currency value decreases. If Apple increased their prices beyond the rate of inflation, it's probably to prevent future losses from the volatile state of the ruble. It's nothing that any other company in the world wouldn't do given the circumstances.

Furthermore, let's say you're selling bread for 1 US dollar per loaf. You make about 30 cents profit from every loaf. If the next day, the US dollar is worth only 10 cents, do you continue to sell your bread for $1 and lose 60 cents per loaf? Or do you charge $10 per loaf? Obviously you'd charge $10, and even then you're probably not going to come out ahead because your suppliers will begin charging more for supplies on top of inflation.
 

Amacfa

macrumors 68000
May 22, 2009
1,907
4,154
D.C.
Apple, the most greddy companies since 1976.

So if your countries currency drops in value by 30%....your not allowed to raise your product 35%? (To account for future losses, and not changing prices everyday)


Simpler terms: You can buy a $1000 Macbook in Russia for $700 (in Rubles). So apple isn't allowed to correct for these losses, as well as future ones?
 

croooow

macrumors 65816
Jul 16, 2004
1,044
206
MisakixMikasa does have a point.. it only costs about $247 to make an iPhone. their markup is crazy

The iPhone markup is a different issue that should have been discussed as soon as Apple started selling phones in Russia before the ruble fluctuations.

If the currency in Russia loses that much value what do you expect Apple (and all the other companies who sell products in Russia from other places in the world) to do? The markup was already there before the ruble lost 30% of its value.
 

bugout

macrumors 6502a
May 11, 2008
710
27
is everything!
Last time I checked, those $247 are estimated component costs, you still need to add R&D costs, marketing, supply chain deals and many more things.

I guess what he "forgot" to consider is that the first iphone 6 to roll off the production line cost tens if not hundreds of millions of dollars. it's iPhone 2 through x-million that cost $247...
 

ArtOfWarfare

macrumors G3
Nov 26, 2007
9,338
5,539
Blame Putin. And don't be mad that Apple is worth more than your beloved mother Russia.

At Apple's highest point, they were worth $670B. With the quick decline of the ruble, Russia is worth about $1.4T right now. So they're still worth over twice as much as Apple has ever been worth. But Apple is on a trajectory that could see it becoming worth more than $1T next year (the first company to cross that milestone) whereas Russia is on track to drop below $1T if they don't correct course. So next year it's possible your statement will be true.
 

croooow

macrumors 65816
Jul 16, 2004
1,044
206
At Apple's highest point, they were worth $670B. With the quick decline of the ruble, Russia is worth about $1.4T right now. So they're still worth over twice as much as Apple has ever been worth. But Apple is on a trajectory that could see it becoming worth more than $1T next year (the first company to cross that milestone) whereas Russia is on track to drop below $1T if they don't correct course. So next year it's possible your statement will be true.

I think the that post you are replying to was not to be taken literally. But if you actually want to: how do you put an actual value on an entire country? Where does that $1.4 Trillion figure come from?
 

2457282

Suspended
Dec 6, 2012
3,327
3,014
The ruble volatility does not seem to be slowing. I can understand why the significant markup. And if the volatility does not stabilize, they may need to change prices again within a few months. Russia is definitely headed in the wrong economic direction right now. Obviously, a lot has to do with the price of oil and the economic sanctions imposed due to Putin's action in the Ukraine and elsewhere.

Those that are posting that Apple is greedy are failing to understand both economics and politics, both of which are driving this issue.
 

predation

macrumors 65816
Apr 3, 2013
1,237
867
Yeah it costs about $200 to make the iphone, but take into consideration the operation costs of creating the iOS, marekting, and all the other things involved in selling the product.

Smh people.
 

MisakixMikasa

macrumors 6502a
Aug 21, 2013
776
2
Waterloo, Ontario, Canada
So if your countries currency drops in value by 30%....your not allowed to raise your product 35%? (To account for future losses, and not changing prices everyday)


Simpler terms: You can buy a $1000 Macbook in Russia for $700 (in Rubles). So apple isn't allowed to correct for these losses, as well as future ones?

Is it price increasing cross board in Russia? Of it is, is it 35% increasing? 35% is huge jump...
 

MisakixMikasa

macrumors 6502a
Aug 21, 2013
776
2
Waterloo, Ontario, Canada
The point is that he/she can't afford an iPhone.

iPhone is not that expensive.. Probably just a week's paycheque...

The point is iPhone is not worth the premium over other smart phone. I am using iPhone 6 and Moto X... The Moto X is so much better than iPhone 6. Seriously... Beside the somewhat advantage on
 
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