14 DAY TRIAL // The already expensive iPhone 6 has seen a price increase of about 70 percent due to the ruble’s fluctuations and Apple’s decision to suspend sales in order to adjust pricing.
Today, Apple fans in Russia need to shell out a whopping 53,990 rubles ($954 / €778) for the low-end version of the handset, the 4.7-inch 16GB model. The device normally retails for $649 in the United States and €699 across Europe (with some exceptions). At the other end of the spectrum, the high-end iPhone 6 Plus with 128GB of storage sells for 77,990 rubles ($1,380 / €1,126).
Half a week’s sales down the drain
Because of the huge discrepancies between the US dollar and the Russian ruble last week, Apple was forced to completely halt online sales, taking down the website for maintenance. The company confirmed that the outage was not an error, and that it was indeed calculating new prices based on the severe fluctuations incurred by the country’s currency.
Spokesperson Alan Hely said at the same, “Our online store in Russia is currently unavailable while we review pricing. We apologize to customers for any inconvenience.”
The outage was several days long, with the online store only resuming operations this past weekend. Considering Apple’s decision, the lost sales are still not higher than the money it would have lost had it kept the existing prices. Or at least not much higher.
Same goes for apps
The situation in Russia has forced Apple to take a similar approach in the App Store, where it has raised app prices by 100%. Apps in Russia now cost double what they used to cost a week ago.
Apple confirmed this move as well, via an email sent to registered developers who have Russia ticked on their distribution list.
The email states, “We’ve increased the price for apps and In-App Purchases on the Russian App Store to account for changes in foreign exchange rates. We’ve also updated the pricing matrix, which is now available in the app’s Pricing section in My Apps on iTunes Connect. Note that we periodically adjust prices on the App Store due to changes in foreign exchange rates. If you have any questions about the price changes, contact us.”
Apple could reduce its prices in Russia if the country’s currency manages to bounce back a little, but it would take another considerable discrepancy to push the company to freeze online transactions once again this quarter.
