Apple Reports Record Profits in Russia

July 28, 2017 — 10:51
— Update: Jul. 28 2017 — 10:03

Apple Reports Record Profits in Russia

July 28, 2017 — 10:51
— Update: Jul. 28 2017 — 10:03
Matcuz / Pixabay

Despite worsening relations between the United States and Russia, one of America’s most iconic companies reported soaring sales and astronomical profits in Russia last year.

Apple, which produces gadgets including the iPhone and iPad, said it had net sales last year in Russia totalling 124 billion rubles ($2 billion), 1.7 times more than the figure for 2015, the Interfax news agency reports.

The company’s net profit in Russia in 2016 was 6.45 billion rubles, which dwarfs profits of 7.2 million rubles in 2015.

Apple, the world’s largest information technology company by revenue, sells in Russia through its subsidiary, OOO Apple Rus, which has handled all sales of Apple gadgets in the country since 2013.

Globally, in 2016 Apple had net sales of $215.64 billion, and a net profit of $45.68 billion, which was a drop from 2015 when those figures were $233.71 billion and $53.39 billion, respectively.

Before 2013, Russian distributors made direct purchases of Apple products from any of the company’s foreign subsidiaries.

On March 14, Russia’s Federal Anti-Monopoly Service (FAS) said that Apple Rus was guilty of price-fixing the iPhone 5 and iPhone 6 models.

“Apple Rus monitored retail prices for Apple iPhones sold in online and retail stores, and if the prices were ‘unsuitable’ then Apple’s Russian subsidiary sent emails with a request to change them,” said FAS in a press release from March.

FAS added that Apple was cooperating to end such practices, and was “implementing anti-monopoly compliance.”