Apple has stopped selling its products in Russia. It is not a humanitarian decision: it is economic

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Manzana suspended the sale of its products in Russia on March 1, six days after the invasion of Ukraine began. According to the statement given by the company itself, he began to do so a few days before, limiting the Apple Pay service in turn. It also removed the Russia Today (RT) and Sputnik apps from the App Store, though not in Russia. The European Union has already announced its intention to veto these two media at the service of the Russian government.

Although in its statement Apple explained that it was providing support for the refugee crisis, this decision has nothing to do with forcing the Russian government to stop its offensive on Ukraine, but with safeguard your finances against the collapse of the rublewhich has lost more than 30% of its dollar value in the last three weeks.

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Background inside and outside Russia

This is not the first time that Apple has made this decision.. Seven years ago the ruble also went through a crisis just as Russia backed Ukrainian separatists, sparking concerns about possible US sanctions over Russian military action in Crimea. On that occasion, the ruble fell 20%, despite the fact that the central bank shot up the interest rate to almost 20% to cushion the blow (same as now)… and Apple also stopped its sales in Russiadespite being in the middle of the Christmas campaign.

Turkey in 2021 or Russia itself in 2014 experienced an interruption in Apple sales due to the collapse of their currencies

Currency fluctuations of this level have a very negative impact on the company’s finances when they convert that foreign currency, the ruble in this case, to dollars. In the case of Russia, its sales account for around 2% of the company’s global income according to some analysts.

For the same reason, Apple also stopped selling its products in Turkey a few months ago, in November 2021. The Turkish lira had been depreciating for months and prices were suffocating the profit margin once they were converted to dollars. At that time the experience of someone trying to buy on the Apple website was exactly the same as the current one in Russia.

In the online press room of the Russian Apple website there is also no reference to this measure nor does it expose any humanitarian motivation. In this sense, some measures are applicable in Ukraine, such as the deactivation of real-time traffic and road incident reports that the company offers in Apple Maps, in order to preserve the safety of Ukrainian citizens by ceasing to provide useful information to the Russian army.

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Apple’s relations in dictatorial countries or in armed conflict such as Russia come a long way. It has had a unique connection with China, having to jump through the hoops of its demands in order to sell its products. As it also sells them in Saudi Arabia, where in addition to opening its first Apple Store in 2019 an app was found to exist in the App Store, created by the country’s government, which allowed, among other things, Saudi men to control their women through geolocation to prohibit them from leaving the country by plane, for example. In Russia also had to compromise with the storage of the data in iCloud or remove dissident Navalny’s app after strong pressure from the Kremlin.

Other companies are taking similar steps to those of Apple, leaving the Russian market, like Nike, which paralyzed sales “temporarily” or Adidas, which suspended sponsorship of the Russian Football Union. simple measures motivated by the devaluation of the ruble or by the reputational crisis in a market that is not one of the main ones in the world.

Manzana suspended the sale of its products in Russia on March 1, six days after the invasion of Ukraine began.…

Manzana suspended the sale of its products in Russia on March 1, six days after the invasion of Ukraine began.…

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