Things just aren’t going well in Russia. Apple has temporarily closed business operations in the country, with company official confirming the move and apologizing to users.
And the reason?
The extreme fluctuations of ruble — the Russian currency just plummeted 19% today, and the value surpassed a ratio of 80:1 compared to the US dollar this week. A surprise interest rate increase apparently failed to stem things up.
As this report by Bloomberg reveals, such extreme fluctuations are not good for any business, and Apple was required to constantly adjust the prices for its products based on a number of factors.
Factors like currency rates and taxes, for instance.
However, the tumble today was so severe that the Cupertino based company finally had to stop sales completely, otherwise it would have risked losing millions of dollars in sales. As Alan Hely, an Apple spokesperson explained:
“Our online store in Russia is currently unavailable while we review pricing. We apologize to customers for any inconvenience.”
The online store is currently down, as you can see here.
Apple has confirmed, however, that this outage is temporary, and they plan to be back in business, as soon as they can find a solution to these price adjustments. Wonder how long that takes!
But instances like these are not uncommon, in case you’re wondering.
No company wants to suddenly take 20% less profits in a particular market, particularly if it deals with physical hardware products like Apple.