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Apple Inc. (NASDAQ:AAPL) Closed Down Its Online Operations in The Country Of Russia

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It is weird for a tech giant to shut down one of its most popular online stores for gadgets when the Christmas is just around the corner. However, it has happened in Russia. Apple Inc. (NASDAQ:AAPL) has closed down its online store in the country of Russia due to the falling currency. Now, the customers cannot make purchases on the Russian website of the company.

It is worth mentioning here that the company does not have any physical stores in that particular country. For its business in Russia, Apple mainly relies on the third party sellers, carriers or its website.

If a customer wants to make a purchase of the Apple item, and he visits Apple Inc.’s (NASDAQ:AAPL) website, all he will see is a black page with a message that the company is busy updating its store and it will be back soon.

The currency of the country of Russia has fallen down by more than 20 percent in just a matter of one week.  The central bank of the country increased the interest rates to 17 percent in an effort to control the decline. On Wednesday, the currency dropped by 5 percent and came down to 71 rubles for a U.S. Dollar. The rate of the currency is declining due to the drop in oil prices and the sanctions that the western countries have imposed against Russia for its military operations in Crimea.

According to the market analysts, the country’s currency has dropped due to the concerns that United States will impose new sanctions on Russia, for Russia is supporting Ukrainian separatist movement. Experts are of the view that the ruble slide of this week was caused due to these concerns, and if Russia’s situation remains the same, the rate will decline even further.

These currency fluctuations can definitely affect the profits of an international giant. Apple Inc. (NASDAQ:AAPL) has been seeing a huge decline in its profits for the last couple of weeks, especially when the company translated the Rubles in U.S. Dollars.

Apple Inc. (NASDAQ:AAPL) avoided to increase its product prices in the country of Russia. However, it had to raise its prices of iPhone 6 Plus and iPhone 6 by 25 percent on November 26, 2014.  Even after the price of iPhone 6 was raised to 39,990 Rubles, the translation caused the value to drop to $585 from $847.

The customers in Russia are quite concerned over the falling prices, for the cost of each item from food to clothing has increased as much as 20 percent. Apple is not the only company that has increased its prices in Russia in order to make up for the lost earnings: Samsung has also done so.

Coming to the share value of Apple Inc. (NASDAQ:AAPL), the company has been trading in the range of 106.82 to $109.84. As far as its P/E (price to earnings) ratio and dividend yield are concerned, the figures currently stand at 17.02 and 1.72 percent respectively.

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