Russian Ruble Devaluation Results In Nearly 70% Price Hike On Apple iPhone 6 In Russia [Apple Store Back Online]

A couple of days back, Apple decided to shut the doors of its online store pertaining to Russia. The reason quoted for the abrupt closing down of the website was falling Russian currency ruble. But now, Apple's online store is up and running in Russia. The flipside, however, is that the tech giant has hiked the prices of its iPhones in order to mitigate the nosedive of ruble against the U.S. dollar.

It is worth noting that, the 16 GB variant of the Apple iPhone 6 is priced at 53,990 rubles, which roughly translates to US$981, AU$1208 and 630 GBP. In comparison, the iPhone 6 used to cost 39,990 rubles (i.e. US$727, AU$895 and 466 GBP) in Russia, before the price hike, says GSM Arena. Therefore, Apple has hiked the price of its flagship by a whopping 14,000 rubles in Russia.

Furthermore, the loss of value of ruble, in combination with the iPhone 6 price increment signifies that the Apple device is now roughly 70 percent more expensive than in November. In addition, Apple's Russian App Store apps have also been re-priced. Notably, a standard iOS app will now set the buyers back by 62 rubles, while the same app used to cost 33 rubles, prior to the price hike, says Bloomberg.

On the other hand, the Russian ruble has lost reportedly almost 30 percent against the dollar, specific to this quarter. This unprecedented decline in the value of Russian currency can be attributed to the cascading oil prices and various economic sanctions against Russia. This tumble, in turn, makes the earned revenue of Apple and other companies worth less when converted to dollars. Apart from Apple, other global brands like Samsung and Cie. Financiere Richemont SA's (CFR) Cartier have also reportedly corrected the prices of their products according to the current valuation, notes the same site.

Sadly for Russians, the ruble's plunge has resulted in foreign goods costing an arm and a leg in the country. This unprecedented price hike targets electronics goods, cars, clothing and even food, among others. In hindsight, the value of U.S. dollar has climbed up 70 percent plus in 2014 specific to Russia. The Russian currency was reportedly valued at 32.9 rubles during the early January time-frame. But now, the same currency stands at 55 rubles against the U.S. dollar.

Also Read

1. Microsoft Band Will Not Be Available Until Early 2015 - [Read]

2. HTC One (M8) Spotted Running Android 5.0.1 Along With HTC Sense 6.0 - [Read]

3. Microsoft Woos Apple MacBook Users To Switch To Surface Pro 3 By Launching A Transition Website - [Read]