4 ms·

I mean, it's not Apple's fault Turkey's currency is unstable. Why would it be their responsibility to take the exchange risk? I wouldn't be surprised if in res

by qsort 5y ago

I mean, it's not Apple's fault Turkey's currency is unstable. Why would it be their responsibility to take the exchange risk? I wouldn't be surprised if in response to future events like this they stopped accepting payments denominated in TRY altogether.

reaperducer 5y ago
It's been a few years since I was in Turkey, but at the time, most stores took Euros. And street vendors even preferred it. However, whether Apple is allowed to use Euros for the retail prices in store or not may be a legal matter. There are plenty of countries where it's illegal not to price and sell in the government's preferred currency.
- trentearl 5y ago
  I’ve lived in turkey for 3 years and I’ve only seen this with expensive imported bicycles.
- terminalcommand 5y ago
  There are capital controls, it would be illegal to sell in Euros to non-foreigners. There isn't anything stopping you from increasing the prices by indexing it to Euro though, you just have to announce it. Most consumer electronics markets use digital price tags for this reason. They update all prices in TL regularly (once a day etc.). Apple has this strange policy that it uses a fixed rate. They pick a high fx rate and stick with it until Lira depreciates to absurd amounts again.
Traster 5y ago
A perfectly reasonable thing for Apple to do would be to buy foreign exchange options to hedge out the risk of currency fluctatuions, passing the cost on to consumers. So it'll cost a percent or two more in the price of a new Apple product, but that means Apple isn't exposed to risk of currency fluctuations. Having said that, Apple is probably a big enouhg company to just accept the risk itself and not pay for options to hedge that risk.
- londons_explore 5y ago
  If apple do this, people will make use of the price difference and resell Turkish goods in the rest of the world for a profit.

by qsort 5y ago

reaperducer 5y ago

It's been a few years since I was in Turkey, but at the time, most stores took Euros. And street vendors even preferred it. However, whether Apple is allowed to use Euros for the retail prices in store or not may be a legal matter. There are plenty of countries where it's illegal not to price and sell in the government's preferred currency.

trentearl 5y ago
I’ve lived in turkey for 3 years and I’ve only seen this with expensive imported bicycles.
terminalcommand 5y ago
There are capital controls, it would be illegal to sell in Euros to non-foreigners. There isn't anything stopping you from increasing the prices by indexing it to Euro though, you just have to announce it. Most consumer electronics markets use digital price tags for this reason. They update all prices in TL regularly (once a day etc.). Apple has this strange policy that it uses a fixed rate. They pick a high fx rate and stick with it until Lira depreciates to absurd amounts again.

Traster 5y ago

A perfectly reasonable thing for Apple to do would be to buy foreign exchange options to hedge out the risk of currency fluctatuions, passing the cost on to consumers. So it'll cost a percent or two more in the price of a new Apple product, but that means Apple isn't exposed to risk of currency fluctuations. Having said that, Apple is probably a big enouhg company to just accept the risk itself and not pay for options to hedge that risk.

londons_explore 5y ago
If apple do this, people will make use of the price difference and resell Turkish goods in the rest of the world for a profit.