How Apple, Big Tech benefit from taking on Russia

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Silicon Valley’s tech giants are joining the rest of the business world in pulling their products and services from Russia. Companies like Apple (AAPL) have cut ties to the Russian market entirely to protest the invasion of Ukraine, while firms like YouTube (GOOG, GOOGL) , Meta (FB), and Microsoft (MSFT) are limiting the availability of Russian propaganda networks like RT and Sputnik in Europe.

And while Big Tech’s moves put at least some pressure on Russian President Vladimir Putin and provide assistance to Ukrainian citizens, they can also be a boon for the companies’ bottom lines. And for companies awash in controversy, taking action against Russia can improve their standing among consumers.

“We want to think that this is altruistic and companies taking a stand, but sometimes it's also value washing,” Forrester senior analyst Alla Valente told Yahoo Finance. “In other words, if a brand has had some bad media or publicity they could be doing this to try and repair their brand reputation.”

More good than harm

Among major tech brands, Apple is taking the strongest stance against Russia. The company has stopped all product sales in the country, limited services like Apple Pay, removed the RT and Sputnik apps from the App Store everywhere except inside Russia, and disabled traffic and live incidents in Apple Maps to prevent Russia from seeing where Ukrainian citizens may be gathering.

MOSCOW, RUSSIA - MARCH 2, 2022: A re:Store shop at the GUM department store. As of March 2, all re:Store shops in Moscow have been closed as Apple halts all product sales in Russia. Artyom Geodakyan/TASS (Photo by Artyom Geodakyan\TASS via Getty Images)
MOSCOW, RUSSIA - MARCH 2, 2022: A re:Store shop at the GUM department store. As of March 2, all re:Store shops in Moscow have been closed as Apple halts all product sales in Russia. Artyom Geodakyan/TASS (Photo by Artyom Geodakyan\TASS via Getty Images) · Artyom Geodakyan via Getty Images

Apple doesn’t have any physical stores in Russia, meaning its products are sold through third-party retailers. And according to Wedbush analyst Dan Ives, cutting Russia off from hardware sales won’t put much of a dent in Apple’s bottom line.

“Russia overall is breadcrumbs in terms of its financial impact to U.S. tech giants,” Ives told Yahoo Finance. “If FAANG names pulled the plug on doing business in Russia it’s maximum 1%-2% overall revenue exposure.”

Apple has long made human rights one of the cornerstones of its appeal, even if it's to its detriment at times. It famously pushed back against the Department of Justice when investigators demanded Apple create a backdoor for iOS to gain access to an iPhone used by one of the killers in the 2015 San Bernardino terror attack.

Apple’s protested the demand, saying building the backdoor would create a vulnerability in every iPhone on Earth that hackers could quickly find and exploit.

“They are a brand that has drawn a line in the sand about what they stand for and what they don't,” Valente said. “And when you're driven by those types of delineations, it makes it … clearer to see the path that you need to go.”