AGM, a well-known rugged smartphone maker, experiences issues in Russia as its sales in the country stagger. The manufacturer said that its revenues even went 0%.
A man uses his smartphone walking along a street in Moscow on a sunny spring day on March 30, 2021. (Photo by NATALIA KOLESNIKOVA / AFP)
Ever since the issue between the two countries started, various manufacturers that operate in Russia faced some revenue problems.
This is because of the sanctions imposed by the United States against Russia. Because of this, Fortune previously reported that Apple and Samsung decided to pull out their handsets from the country.
However, it seems like AGM will make efforts to continue selling its rugged devices in Russia.
AGM Sees Rugged Smartphone Sales Staggering
According to the South China Morning Post's latest report, AGM is one of the tech firms affected in Russia. For the past few years, around 30% of the company's revenues come from the country.
A woman wearing a face shield and mask to protect against the coronavirus disease uses her mobile phone at Chkalovskaya metro station in Moscow on October 12, 2020. (Photo by NATALIA KOLESNIKOVA / AFP)
Also Read: Intel Halts Business Operations in Russia as it Expresses Support For Ukraine
Now, the rugged phone maker is having an issue when it comes to its sales in Russia.
"The main reason was the hugely volatile exchange rate and a weakened spending power in the market," said Austin Ding, the co-founder of AGM.
He added that the rising prices of their handsets also greatly affected their sales. Some of them even doubled and tripled in value.
But, Ding said that they were able to make up for their losses. Although this is the case, the revenues they generated from Russia are still lower compared to their recent sales before the sanctions were not imposed.
Why AGM's Sales Deteriorate
As of writing, Russia is still affected by U.S. sanctions. Because of this, it is hard to purchase items that are settled in U.S. dollars.
Now, this is the issue of AGM starts. The rugged phone maker relies on American dollars when selling its smartphones to Russian residents.
Aside from AGM, Transsion Holdings, a Chinese budget smartphone maker, also deals with a similar scenario since the company uses U.S. dollars as well.
Because of this, Transsion Holdings decided to change its transaction options to yuan, allowing it to maintain its operations in Russia.
Meanwhile, Intel's Russian operations have been suspended.
On the other hand, Apple Pay decided to remove its Mir payment system support.
For more news updates about AGM and other companies affected in Russia, always keep your tabs open here at TechTimes.
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Written by: Griffin Davis
