The weakening Russian ruble has sent the price of Apple’s iPhone 6 through the roof. Online sales of the smartphone were halted temporarily in Russia, but it’s back on sale now, and Bloomberg reports that the price is 35% higher than it was previously.
Apple raises iPhone 6 prices… again
This is the second time in less than a month Apple has increased the price of the iPhone 6 in Russia. The previous increase was 25%, reports CNET. The 16-gigabyte version is now priced at $956, or 53,990 rubles, according to Apple’s Russia website. The previous price was 39,990 rubles. The 128-gigabyte iPhone 6 is now priced at $1,265 or 69,990 rubles. The 128-gigabyte iPhone 6 Plus is now selling for $1,410 or 77,990 rubles.
Apple, other companies battle weakening ruble
Apple put a temporary hold on sales of the iPhone in Russia on Dec. 16. The company cited “extreme” fluctuations in the value of the ruble as the reason for the temporary suspension. This quarter alone, the ruble has lost approximately 30% of its value against the U.S. dollar. So far this year, the value of the U.S. dollar in Russia has climbed more than 70%, surpassing 56 rubles per dollar, compared to 32.9 rubles at the beginning of the year.
Tumbling oil prices and Western sanctions against Russia have weighed on the nation’s currency. As a result, any revenue Apple or other U.S. companies earn in Russia is worth less unless they increase their prices.
The importance of emerging markets for Apple
Apple has been seeing more and more of its revenue from emerging markets, just as many other Western companies have as well. However, analysts don’t say Apple’s exposure to Russia is all that large. Last year, sales of the iPhone doubled to 1.57 million units. The company generated $1 billion, according to Bloomberg, which cited data compiled by IDC. Through September, Apple had shipped 1.9 million iPhones to Russia, according to IDC.
Apple only sells the iPhone through its website in Russia and does not run any Apple retail stores there. The company’s products are still available in the country through third-party retail sellers, however.