Apple Inc. (AAPL) Resume iPhone Sales in Russia at 35% Price Hike Amidst Devaluating Ruble

Apple Inc. (NASDAQ:AAPL) resumes its online sales operations in Russia after a halt of almost two weeks, but the company has boosted Russian prices of its products on account of ruble’s decline against the dollar, which makes the earnings of U.S. companies operating in Russia lesser in dollar value. Factors such as falling oil prices and economic sanctions against Russia for its invasion of Ukraine has led to the decline of the ruble’s value against the dollar, sliding about 30 percent.

Prior to the halt of Apple Inc. (NASDAQ:AAPL)’s online sales in Russia on December 16, which the company noted is due to the ruble’s “extreme fluctuation”, its iPhone 6 with 16 gigabytes of memory sold for 39,990 rubles. The same item is now priced at 53,990 rubles, a hike of almost 35%. In U.S. dollar value, it is an increase from about $727 last week to the current price of about $966. Other Apple Inc. (NASDAQ:AAPL) products such as the iPads will also see a steep price hike. Meanwhile, prices of apps in Apple’s Russian apps store also increased, up from the previous weeks’ 33 rubles to the current 62 rubles, as reported by a Russian news media.Overall, Apple Inc. (NASDAQ:AAPL) have implemented a Russian price increase of its items about 69 percent within a month, taking into account the 25 percent increase it has undertaken earlier at the end of November this year, and including the current, latest price hike. Meanwhile other companies selling global consumer items in Russia, such as Samsung Electronics and Cartier have also implemented respective price hikes. The slipping value of the ruble has made it more expensive for Russian consumers to buy foreign goods including cars, electronic items, clothing, and food. The cost of U.S. dollar in Russia has risen up to 70 percent throughout the year, up from 32.9 rubles earlier in January to the current price about 56 rubles.