Apple has increased the price of its products in Turkey by 25%. The move comes after the devaluation of the local currency (Turkish lira) against the US dollar. The country went through a currency crash which resulted in an economic crisis requiring the iPhone maker to halt sales.
The sale of Apple products in Turkey had reportedly been completely shut. While the shutdown of the company’s online store in the country was confirmed, the reports pertaining to the closure of physical stores are varying.
New policy by Turkish government crashes currency
The economic crisis in Turkey is reportedly the result of the new policy announced by the country’s President. A new low interest policy was introduced by President Erdogan amid high inflation rates. According to experts, the move is unheard of, as during periods of high inflation it is common to increase the cost of borrowing to reduce demand.
“Insane where the lira is, but it’s a reflection of the insane monetary policy settings Turkey is currently operating under,” writes Tim Ash (strategist), in an analyst note for BlueBay Asset Management.
On November 24, Apple reported that it was halting sales of all its products in Turkey in response to the economic crisis in the country. While the sales have once again resumed, the price of all the products have increased by 25%, keeping in view the new valuation of the Turkish currency.
“We need to abandon this irrational experiment, which has no chance of success, and return to quality policies that will protect the value of the Turkish lira and protect the welfare of the Turkish people,” wrote Semih Tumen, a former Turkish central bank deputy governor, on Twitter.
In 2021, Apple released several new products such as the iPhone 13 series, the new MacBook Pro models powered by M1 Pro and M1 Max chips, and more.