Putin waves a big stick at Apple et al.

From Reuters’ “Moscow tells 13 mostly U.S. tech firms they must set up in Russia by 2022” posted Tuesday:

Russia has demanded that 13 foreign and mostly U.S. technology companies be officially represented on Russian soil by the end of 2021 or face possible restrictions or outright bans.

The demand, from state communications regulator Roskomnadzor late on Monday, gave few details of what exactly the companies were required to do and targeted some firms that already have Russian offices.

Foreign social media giants with more than 500,000 daily users have been obliged to open offices in Russia since a new law took effect on July 1. The list published on Monday names the companies for the first time.

It lists Alphabet’s Google (GOOGL.O), Facebook (FB.O), Twitter (TWTR.N), TikTok and messaging app Telegram, all of which Russia has fined this year for failing to delete content it deems illegal.

apple putin big stickApple (AAPL.O), which Russia has targeted for alleged abuse of its dominant position in the mobile applications market, was also on the list.

My take: Is this why shares took a hit this morning?

15 Comments

  1. Tommo_UK said:
    Apple et al have local offshoots in the EU, U.K., China etc. I’m not surprised Putin wants some of the action and frankly from a revenue perspective I struggle to find any fault with his position, loathsome though he is as an individual.

    I doubt this has anything to do with the share price. As I said in an earlier post, there’s a lot of stretch right now. A pause to refresh is part of the upward grind. Correction territory is -20% from here so with the elastic so pulled to the upside so fast any retrenchment is par for the course.

    1
    November 23, 2021
    • Gregg Thurman said:
      My take: Is this why shares took a hit this morning?

      No. At these prices WS has had its fill of AAPL and aren’t buying as much as they have been the last few sessions. With the demand created by WS the price declines. Always has, always will.

      0
      November 23, 2021
  2. Kirk DeBernardi said:
    “A pause to refresh is part of the upward grind.”

    Amen, brother. The AAPL-long creedo.

    Let’s make some T-shirts!

    😉

    2
    November 23, 2021
  3. Tim Collins said:
    There is probably a very good reason that Apple is not in Russia. There are some very good reasons for Apple to never go to Russia, as long as the current government prevails. The relationship with the Chinese government already causes me unease. I see the loss of Tim Cook and/or the intervention of the Chinese government as the greatest concerns for Apple in the near term. Epic, antitrust issues, and options are annoyances compared to the other threats.

    2
    November 23, 2021
  4. Gary Gouriluk said:
    If Putin were to ban Apple he would be alienating an influential portion of his population. Putting his country in the back seat to the rest of the world. Any assets placed in Russia are a security risk anyway. Apple can just sell its products to a profit seeking oligarch in Putin’s lawless country and let Putin bluster all he wants.

    3
    November 23, 2021
    • David Drinkwater said:
      Russians have no problem with obtaining goods illegally. I am sure the Russian mafia is just as effective today as it was in the 90s. Back then, and probably a fair bit earlier, there was a German expression for the Russian mafia:

      “Heute gestohlen, morgen in Polen.”
      (Stolen today, in Poland tomorrow.)

      It rhymes in German, but the fundamental point was that in East Germany, there was a very strong Russian mafia pull. If the Upper Class in Russia want things, they will be able to acquire them. I saw this with my own eyes in Moscow and Saint Petersburg. A good number of iPhones and very (very) expensive automobiles.

      Putin’s stick waving won’t matter to Apple. iPhones will still penetrate the Iron Curtain.

      0
      November 26, 2021
  5. Fred Stein said:
    Since none of us are psychopaths with nearly unlimited power, it’s best not predict.

    That said, bullies tend to pick on more vulnerable targets. So, Apple may be safer. Sadly, his own people and some of his neighbors have more to fear.

    0
    November 23, 2021
    • Tommo_UK said:
      @Fred actually amongst other things I am a psychologist – with what some call psychopathic tendencies (goes with the profession I think), and a behavioural scientist.

      I may not have unlimited power but I do like to humbly think I may often have extraordinary insight. Maybe that’s just narcissistic though 😀

      0
      November 23, 2021
  6. John Konopka said:
    According to this Russia’s GDP is only $1.7T. Less than Apple’s market cap.

    https://georank.org/economy/russia

    I don’t know the size of Apple’s business in Russia. In the long term interest of the company I’d be in favor of Apple not agreeing to this and taking a small hit in sales. I trust Tim et al to have a better handle on their options than I do.

    Play the long game and wait for a better chance to re-enter Russia.

    4
    November 23, 2021
    • Gregg Thurman said:
      I’d be in favor of Apple not agreeing to this and taking a small hit in sales.

      As do I. Given Russia’s GDP, Apple leaving the country would represent a much bigger hit to Russia, then it would to Apple.

      This is a bullish*t threat.

      3
      November 23, 2021
  7. David Emery said:
    So Apple opens an office in St Petersburg (nicer city than Moscow.) And even if Apple has to open a data center to host Russian citizen data, that’s probably Not A Big Deal. Now if Russian officials start demanding access to individual data that is encrypted (without Apple having keys), that could get “interesting.” That’s a problem not unique to Russia, though.

    0
    November 24, 2021

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