zlacker

[return to "Apple Stops Online Sales in Russia Over Ruble Fluctuations"]
1. mikhai+Y1[view] [source] 2014-12-16 19:20:32
>>colone+(OP)
A company makes a smart decision to pause sales in order to ensure they're not selling their products at a loss due to the drop on the value of rubies....

One shouldn't expect otherwise.

◧◩
2. acchow+64[view] [source] 2014-12-16 19:39:56
>>mikhai+Y1
Apple could purchase FX swaps and charge customers a "FX fluctuation surcharge". That's better than shutting down the store...
◧◩◪
3. tjradc+O4[view] [source] 2014-12-16 19:47:17
>>acchow+64
That presumes they have some idea of the short-term forward volatility of the rubble, which no one does right now. Otherwise they have no idea what the surcharge ought to be.

Furthermore, setting up such things is not cost-free, and if the high-volatility situation is temporary (which is very likely) it could well be that it isn't worth the cost, complexity and risk.

◧◩◪◨
4. Kadin+Aa[view] [source] 2014-12-16 20:39:36
>>tjradc+O4
You base the surcharge on what the swap costs. The cost of the swap takes into account the market's idea of what the ruble is going to do vs. the dollar.

Basically, you make the customer buy insurance against the ruble losing value against the dollar. It's like charging a subprime borrower PMI.

[go to top]