Apple exited the Russian market in response to their leadership’s invasion of Ukraine, and while the company will take a hit to its revenue, the damage likely won’t be as bad as it sounds.
Burga, a phone case manufacturer, released figures that show Apple potentially losing $3 million in revenue per day as a result of abandoning its 15 percent market share.
Stacking up the projected daily losses amounts to somewhere around $1.1 billion, according to ZDNet. While $1.1 billion sounds like an insurmountable loss, it likely won’t be felt by Apple. The company reported $123.9 billion in revenue in Q1 2022, which is a $40.6 increase over the previous quarter.
Despite the potential losses being relatively palatable, they do put a wrench in what was otherwise a growing market as far as Apple is concerned. Burga’s figures show Apple revenue gradually climbing year after year. From 2014’s reported $2.56 billion in revenue to the $7.6 billion reported in 2021 there is about a 200 percent gain, according to ZDNet.
Similar to Microsoft, Apple isn’t just pulling its physical products. Apple is also limiting services like Apple Pay and region locking RT News and Sputnik News to Russia, meaning they will not be available for download elsewhere. The company also suspended its live incident reports on Apple Maps as a precautionary measure.
Still, even with limiting its services and sales in the Russian market, Apple is primed for a win. The reality is that—although it will take a slight loss—Apple stands to gain a healthy amount of good faith from the global community in standing with companies like Nike, Microsoft, EA, and others. This good faith could translate to increased brand loyalty and pick up some new customers along the way who have been teetering on the edge of whether to buy Apple.