Translated by
2019/09/10 20:01:03

Smartphones (market of Russia)

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Content

2019

Inventive Retail Group: Growth of the Russian trade-in market by 25-30% a year

On September 10, 2019 the Inventive Retail Group company reported that it analyzed the domestic trade-in market. Programs of the redemption of mobile devices in exchange for a discount for purchase of new stopped being exotic, now it is a part of the Russian economic landscape.

Russian trade-in market. Smartphones

According to the company, from January, 2017 to July, 2019 74.5 million smartphones are implemented. At the same time on hands Russians had 88.1 million smart phones in the summer. The average term of ownership of the mobile device makes about two years. On the expiration of this time the most part of smartphones needs under repair which is usually limited to replacement of the accumulator. After four years of operation the device can become useless. A rare exception – flagman models of the leading world brands which regularly work up to six years.

According to Inventive Retail Group, from 88.1 million smart phones on hands at Russians of 10 million are outdated models with operation more than three years. A part from these devices several times replaced owners. So, through social networks and Internet platforms in 2018 about 2 million / u-smartfonov would be sold. However secondary market purchase is integrated to risk to face unfair sellers who use Internet platforms for implementation of counterfeits or faulty devices.

The trade-in programs change a situation in secondary market of the mobile equipment. Russians through official representatives of global manufacturers exchange mobile devices which used a year and a half, on new models of smartphones. In 2018 on trade-in about 1 million devices were handed over, in 2019 growth up to 1.3 mln pcs is predicted. In the long term three years the trade-in market will increase by 25-30% a year. In 2021 the number of the devices which are handed over according to programs of the redemption would will exceed the volume of the spontaneous market / u-gadzhetov which, in turn, will be reduced by 5% a year.

Growth of popularity of trade-in will be observed also in other segments. So, re network: Store, the largest Premium Reseller Apple in Russia, in August, 2019 expanded the program on all line of Apple. At the same time in addition to smartphones redeems notebooks, tablets and the smartwatch including other vendors.

In the first half of the year 20.7 million mobile phones were imported to Russia

On September 3, 2019 the GS Group company reported that in the first half of the year 20.7 million mobile phones were imported to Russia. 63% (13 million pieces) make smartphones with the estimated price in shop from 7000 rubles of them.

In the first half of the year 20.7 million mobile phones were imported to Russia. Illustration: grodno.greenbelarus.info

According to the company, All import volume for the first half of year decreased by 3% (1 pg. 2019 to 1 pg. 2018), at the same time last year during the same period there was growth (in 1 pg. 2018 of delivery grew by 8%). The main falling happened in the second quarter 2019 when deliveries decreased by 19% (2 sq. 2019 to 2 quarter of 2018), generally because of a segment of phones up to 7000 rubles, at the same time at the beginning of a year all import of mobile phones grew by 16% (1 sq. 2019 by 1 sq. 2018).

In the second quarter 2019 there was a considerable decrease in deliveries of cheap mobile phones (in comparison with the first quarter), first of all, the BQ ( Bright&Quick ), Texet and Inoi brands. Such falling is uncharacteristic for this market: as in the first quarter usually there is a stagnation after New Year's Eve sales, deliveries in the second quarter are, as a rule, higher, than at the beginning of a year. If in the first quarter deliveries of mobile phones up to 7000 rubles grew by 19% (1 sq. 2019 by 1 sq. 2018), then in the second quarter they dropped by 44% (2 sq. 2019 to 2 quarter of 2018).

Such sharp falling has two reasons. The first — the operating room: deliveries of the Inoi phones in the first quarter made 0.8 million pieces, and in the second quarter fell short of 0.1 million pieces, such difference in volumes strongly distorted statistics. The second reason — more global and long-term: the modern mobile phone becomes the media device in which function of telephone communication fades into the background, and work on the Internet and mobile applications, for example, bank and also interaction with video and photocontent comes out on top. Therefore the modern operating system, the big touch screen and high-speed performance are necessary for phone. The rate of importers on fall of income of the population was incorrect: the consumer needs the modern smartphone, but not the push-button telephone. This distortion will only amplify further: if at the beginning of 2017 the share of cheap mobile phones (up to 7000 rubles) exceeded 50%, then by the end of 2019 it will fall up to 30%.

However it is not absolutely correct to consider that the segment of expensive smartphones grew due to organic growth of all brands. If to remove deliveries of Huawei and Xiaomi, then a segment of smartphones from 7000 rubles and will remain at the level of 4 million pieces a quarter.

It partly explains decrease in deliveries in the second quarter when the import volume of smartphones from 7000 rubles decreased by 3% (2 sq. 2019 to 2 quarter of 2018) after growth by 13% in the first quarter 2019. Because of problems at Huawei, the segment lost one of locomotives, and volumes fell.

The lineup of Samsung and Huawei includes also cheap models which got to a segment "up to 7000 rubles", their especially large volume was in 2017. In this section and diagrams such models are not considered. In the research we decided to depart from the TOP-3 format as selection only of three leading brands will not show all picture of changes. The first four positions are taken by Samsung, Huawei, Xiaomi and Apple. Deliveries of smartphones from 7000 rubles in the first half of the year each of these brands exceeded 1 million pieces, other brands for half a year could not reach separately a level in 100 thousand pieces.

The total supply rate of four leading brands for the first half of 2019 was 12 million pieces (a gain for 3% according to the results of the 2nd quarter and for 14% at the end of 1 half-year). The total share of these brands reached 92% of the total amount of deliveries of smartphones of 7000 rubles. The first four consolidates more and more the market (we will remind, for the same period in 2017 their general share made only 71%, and in 2018 – 84%).

According to the results of the second quarter 2019 as earlier predicted analytical center GS Group, again Samsung came out on top. The conflict of Huawei company with the USA, being a part of more global opposition, aroused mistrust of buyers and decrease in demand.

Samsung in the first half of the year imported 4.9 million pieces of smartphones from 7000 rubles, having shown a gain of 19% (1 pg. 2019 to 1 pg. 2018). The breakthrough traditionally was made in the second quarter 2019: 2.9 million pieces in 2 sq. 2019 against 2 million pieces in 1 sq. 2019 that is quite good even against the background of success of previous years. At the end of half-year Samsung occupied a share of 38%. The company continues experiments with transfer of production from China to India where in the second quarter for Russia more than 0.7 million pieces of smartphones (a share from deliveries of Samsung to Russia were collected again: 39% in 1 sq. 2019 and 25% in 2 sq. 2019). A part of volume in the second quarter (0.25 million pieces) came from China. According to the results of the first half of the year 2019: Samsung imported 65% of volume from Vietnam, 30% from India and 5% from China. Other leaders assemble smartphones only in China.

Import of Huawei in the second quarter made 2019 1.7 million pieces that there is 28% below than the level of second quarter 2018 and is 34% lower, than in the first quarter 2019. As a result at the end of half-year Huawei takes the second place with a capacity of 4.3 million pieces (a share in a segment of 33%) with a gain of 26% (1 pg. 2019 to 1 pg. 2018).

Judging by the assessment of the situation stated by the founder of Huawei, hard times are coming his company: in the recent letter Wren Zhenfey told the employees about the future reorganization of the company taking into account circumstances and also about possible production reduction of smartphones. Therefore import of the Huawei mobile phones to Russia perhaps will come out on top not soon. Failure Google and other American companies from cooperation with Huawei can be perceived doubly: on the one hand, it will complicate business of the company, with another, will force to select more independent way of development. So the company already announced readiness own operating system HarmonyOS (before there were working names Kirin and Hongmeng OS), which will become a core of an ecosystem of Huawei. The Chinese Internet services, for example WeChat, will also not fail to use a situation and will rise on the platform quicker than the western analogs.

Contrary to opinion of the inhabitant that the conflict of Huawei and the USA are a result of the unfair global competition from Americans, it not absolutely so. The key reason deeper and lies in the field of geopolitics - it is fight for control in the future over a transmission medium of information on standard 5G, i.e. actually control over information and information space. It in a root distinguishes the history of Huawei and ZTE. Any of the parties does not intend to concede, the excess proof to that is the presentation of own operating system for devices of Huawei that in itself is a call as offers an alternative the American Android and iOS, not controlled by the USA. Therefore the conflict can be considered long-term in which, perhaps, also other brands of the Chinese smartphones will be involved soon.

In the analysis of dynamics of Huawei it is necessary to take a broad view of the market of mobile devices also more. Good results of the leading brand of Celestial Empire in Russia is an echo of more large-scale phenomenon, namely fatigue of consumers from inflated prices of devices of former leaders (Apple less Samsung concerns more). Huawei is more likely an example of a real alternative: not smaller level of new technologies and service at the moderate price. It in many respects explains interest in the market in the following brand in a segment from 7000 rubles.

Deliveries of the Xiaomi smartphones reached in the first half of the year 1.6 million pieces with a gain of 54% (1 pg. 2019 to 1 pg. 2018), thus, to the middle of 2019 of Xiaomi overtook Apple in Russia and came to the third place from shares of 12% in a segment. Xiaomi showed such result thanks to the double growth of deliveries in the second quarter this year: 1.1 million pieces (against 0.5 million pieces in 1 sq. 2018 and 0.5 million pieces in 2 sq. 2019). However, while such gain rather tactical as in 2019 the large Russian distributor of diHouse who provided a half of deliveries of a brand in the second quarter 2019 joined cooperation with a brand of Xiaomi (unlike Samsung, Huawei and Apple, whose smartphones to Russia import home subsidiary companies, the Xiaomi smartphones into Russia are imported by independent Russian distributors, the largest of whom treat structures of Marvel of KT, DNS and now diHouse). Nevertheless, analyzing a picture of the first four in general, one may say, that Xiaomi has deserved chances firmly to take the third place in Russia in a segment of smartphones from 7000 rubles.

It is possible to tell that at Apple the situation is more and more sadly. Not in view of marginality and the general development of an ecosystem of devices and Apple services in the world, in Russia the brand loses the positions in the market of smartphones: deliveries in the first half of 2019 made less than 1.2 million pieces (the weakest result in recent years), with decline of volume by 38% (1 pg. 2019 to 1 pg. 2018) Apple takes a share of 9% and the fourth position. Let's remind, to the middle of 2017 Apple was inferior only to Samsung company, to the middle of 2018 it was bypassed by Huawei, and today — Xiaomi. Being the founder of the modern market of smartphones when in 2007 Steve Jobs provided to general public the first iPhone, Apple suffers from technology deceleration of the market of smartphones most. It is possible that on the next stage of Apple will be a creator of the disruptive device again, having offered the consumer the updated philosophy as it was made in due time by Steve Jobs.

However it is necessary to consider the course of trade war between the USA and China where products of Apple are made. Judging by the latest news, the company management has a direct contact to the U.S. President who demands transfer of production of the American goods from China, and to opinion of the company listen. Such transfer is not profitable to Apple owing to cost value growth what the company management many times declared. On the contrary, Apple expects to cooperate even more closely with suppliers from China, for example, to buy OLED screens not from the Korean Samsung, and from the Chinese BOE (one of the possible reasons of disagreements with Samsung — the trade conflict of Korea and Japan which struck at production of OLED in Korea).

Trade opposition between the USA and China worsens perspectives of Apple in the market of smartphones in Russia even more. Deliveries of devices to Russia in 2019 fell in comparison with the same periods of 2018: for 47% in 1 quarter and for 26% in 2 sq. 2019, at the same time in 2018 import of Apple increased as in the first quarter, and in the second.

At A and B brands following top four, volumes generally fall. Any of them, even very successful in the past, cannot throw down a challenge to leaders. Total amount is ten brands (Asus ZTE Sony MotorolaLenovo,/ Nokia, Meizu OPPO LG, HTC i Philips) it was reduced in the first half of the year three times (by 65%) from 1.2 million pieces to 0.4 million pieces (1 pg. 2019 to 1 pg. 2018) that lowered their total share in a segment of smartphones from 7000 rub from 10% to 3%. Let's remind, in the first half of the year 2018 there was a similar picture: falling almost twice (for 40%), and the share decreased from 22% to 10%. At the same time the share of C-brands decreases much more slowly: from 7% in the middle of 2017 up to 6% in the middle of 2018 and up to 5% in the middle of 2019. Some of C-brands (BQ Vivo, Tecno) exceed on delivery scopes A and B brands. All this speaks about crisis of positioning of these brands in the market of smartphones and further washing out of their value before the consumer.

Deliveries of the ASUS smartphones fell in the first half of year for 40% up to 100 thousand pieces (1 pg. 2019 to 1 pg. 2018). The same negative result showed a brand a year ago when deliveries fell from 293 thousand pieces to 167 thousand pieces (1 pg. 2018 to 1 pg. 2017).

Import of the ZTE smartphones in the first half of the year 2019 decreased slightly (by 10%) up to 99 thousand pieces, the main volume fell on the second quarter. Nevertheless in the middle of 2017 ZTE held the fourth place with a capacity of 424 thousand pieces for the first half of the year.

Good exception is OPPO (enters into the Chinese BBK Electronics group). Deliveries of the OPPO smartphones grew five times to 96 thousand pieces (1 pg. 2019 to 1 pg. 2018), having shown the best result in group in the second quarter 2019 (77 thousand pieces).

One of the most dear brands in the history of consumer electronics also gives in in the market of smartphones. Import of the Sony smartphones fell in the first half of 2019 by 3.5 times — up to 46 thousand pieces (1 pg. 2019 to 1 pg. 2018). Let's remind, in 2018 deliveries at the end of half-year also decreased (by 25%).

The Finnish brand which consumers first of all associate with the mobile phone could not repeat progress of 2018 in a segment of smartphones from 7000 rubles yet. Deliveries of Nokia fell in the first half of 2019 ten times up to 40 thousand pieces. Transition from the mobile platform Windows to Android helped the Finnish company to recover positions in the market last year when for the first half of the year 2018 import of smartphones from 7000 rubles grew to 417 thousand pieces. Then the Finnish company took the fourth place, twice conceding to Xiaomi, but also twice exceeding Meizu which then took the fifth place. Unsuccessful cooperation with Microsoft strongly struck the Finnish brand (the division of mobile phones was sold to Microsoft company in 2014 and is redeemed back in 2016 by HMD Global Oy company which was founded by natives of Nokia). For September, 2019 to Russia phones neither under a brand of Microsoft, nor under the Lumia brand which the American corporation developed to the detriment of Nokia are not delivered any more. However with transition to Android the Nokia smartphones appeared on an equal footing with other brands and cannot be selected yet: considerable decrease in deliveries happened as in the first, and in the second quarter. At the same time deliveries were reduced by both distributors who submit this brand in Russia.

Motorola is the second exception among catching up tens A and B brands. The staff of Motorola stood at the origins of mobile communication in the 1970th years, however in 2012 the division of the Motorola Mobility mobile phones passed to Google, and in 2014 was sold to the Chinese company Lenovo. The owner integrated competences of Motorola and Lenovo in mobile communication. Lenovo develops all line of smartphones under a brand of Motorola. After actually pause in deliveries of both brands in the first half of the year 2018, in 2019 30 thousand pieces were imported. However, for the first half of the year 2017 joint import to Russia of smartphones under brands of Motorola and Lenovo made 236 thousand pieces, and distributors was more.

Deliveries of Meizu fell up to 10 thousand pieces for the first half of 2019 from 205 thousand pieces in 2018 and 280 thousand pieces in 2017 (digits on half-year). It does not mean leaving from the Russian market yet, the brand since June began to work with the new distributor (the former importer leaves the market at present).

The LG smartphones, probably, will abandon the Russian market soon: deliveries decrease every month. From 390 thousand pieces in the first half of 2017 volumes fell up to 80 thousand pieces in the first half of the year 2018 and up to 5 thousand pieces in the first half of the year 2019. Similar to a situation is with HTC and Philips. Import of the HTC smartphones in 2019 stopped, and import of Philips in a segment from 7000 rubles did not exceed one thousand pieces.

Among brands of smartphones which we carry to C-brands so far it is possible to select two groups which apply for success in a segment from 7000 rubles.

In the first group brands with the Russian roots: BQ and Prestigio. According to us, the supply rate of smartphones under these brands in a segment from 7000 rubles was in the first half of the year 2019 87 and 55 thousand pieces respectively, at the same time BQ was lowered by volume, and Prestigio was a little increased in comparison with 2018.

Brands of smartphones from China got into the second group: Vivo and Tecno which import in the first half of 2019 made 67 and 59 thousand pieces respectively. Also in the second quarter 2019 to Russia deliveries of smartphones under brands of Realme and Hisense began: 19 and 15 thousand pieces respectively. Brands of Vivo and Realme belong, as well as OPPO, the Chinese BBK Electronics group. It is characteristic that all three brands are imported to Russia by the Chinese distributors (the Russian companies with the Chinese roots) that it is connected, probably, with the policy of BBK. The Tecno brand belongs to the Chinese Transsion Holdings and develops in the market of Africa therefore its import to Russia raises many questions. The Chinese brand of Hisense is already known to the Russian consumer on TVs and major appliances. The Chinese brands continue to take gradually the market of expensive smartphones in Russia.

The general share of the leading Chinese brands (Huawei, Xiaomi, ZTE, Meizu, Motorola/Lenovo, Vivo, OPPO and also others) in a segment of smartphones from 7000 rub in 1 half-year 2019 exceeded 48% while in 2017 was twice less. Growth of a share of the Chinese brands decreased in comparison with 2018 a little that is well visible on the diagram. Statistically it is connected with difficulties at Huawei which part of volumes was returned to itself by Samsung.

In a segment of cheap smartphones and push-button mobile phones the general decrease in volumes about which reasons it was mentioned above continues. But there are two interesting parts. First, this segment is occupied generally by the brands belonging to the Russian companies: so, the top ten from foreign brands included only Nokia, Philips and Itel. Secondly, leaders constantly change, and dynamics often is absent: brands which win first place come from scratch and also can quickly abandon the market.

For September, 2019 the best result showed a brand — Inoi. Deliveries began in the middle of 2018, but in 2 sq. 2019 began to fall and almost stopped in June of this year. Nevertheless according to the results of the first half of the year 2019 of Inoi showed the largest volumes in a segment – 869 thousand pieces, generally are push-button telephones.

To the second place according to the results of the first half of the year there were Texet phones with a capacity of 827 thousand pieces. In 2019 deliveries of the Texet phones decreased by 11% (1 pg. 2019 to 1 pg. 2018), however in the first half of the year 2017 import of Texet hardly exceeded 400 thousand pieces.

The leader of previous years of BQ (Bright&Quick) reduced deliveries to 48% — to 746 thousand pieces, the main volume fell in 2 sq. 2019. However the brand actively works also in a segment from 7000 rubles.

Maxvi saves positive dynamics: a gain for 4% in 2019 up to 645 thousand pieces (1 pg. 2019 to 1 pg. 2018), we will remind, in 2018 the brand also showed small growth – 9% (1 pg. 2018 to 1 pg. 2017). Philips also continues forward development in the Russian market of mobile phones: import in the first half of the year 2019 grew by 26% (1 pg. 2019 to 1 pg. 2018), having made 536 thousand pieces (in the first half of 2018 growth was 14%). At the same time the complete association with the Dutch company is not absolutely right: in the market of smartphones the brand of Philips still belongs to the Dutch Koninklijke Philips N.V, but is made by the Chinese Shenzhen Sang Fei Consumer Communications according to the license.

Itel which regular deliveries actually began only at the end of 2018 for the first half of the year came to the sixth place with a capacity of 504 thousand pieces. The Itel brand, also as well as Tecno, belongs to the Chinese Transsion Holdings, and too is imported by the Russian TFN company.

Dexp deliveries remain three years in a row at the level of 470-480 thousand pieces for the first half of the year. Import of Nokia steadily made 950 thousand pieces in the first half of the year 2017 and 2018, but in 2019 both distributors reduced import volumes twice to 450 thousand pieces.

Considerable falling happens at Fly which supply rate decreases twice the second year in a row: from 1.4 million pieces in the first half of the year 2017 (then he was a leader in a segment up to 7000 rubles) up to 290 thousand pieces in the first half of the year 2019. Probably the Russian distributor of Marvel of KT who conducts Fly in Russia changes the relation to the market of mobile phones that was reflected also in Nokia.

As we already mentioned in the previous research, the Russian market is completely left by the Indian Micromax Mobile: in 2019 phones of the company are not delivered to Russia. At the same time in 2017 Micromax took the second place in a segment to 7000 thousand pieces with a capacity of 1.3 million pieces, closely approaching Fly.

In the first half of the year 13.1 million smartphones for the total amount of 211 billion rubles are sold

On July 24, 2019 Svyaznoy (integrates shops under brands Svyaznoy and Euroset) reported analysis results of the Russian market of smartphones in the I half-year 2019. The share of smartphones with the double back camera showed the largest growth in comparison with the same period of 2018.

In total from January to June, 2019 in Russia 13.1 million smartphones for the total amount of 211 billion rubles were sold. The most popular are devices with one back camera, but at the same time their share year-on-year decreased from 82.5% to 53%. Honor 7A 16GB, in money — iPhone XR 64GB became the most popular model in pieces of smartphones with one back camera, and the average price in 6 months of this year was 11,700 rubles.

Smartphones with the double back camera significantly accrued a share of sales. A year ago the share of such devices in piece expression made 13% while in the I half-year 2019 the indicator was 33%. The average cost of smartphones with the double camera was 21,600 rubles. Honor 8X 64GB, in money — iPhone X 64GB became the most popular smartphone in pieces.

Sales of devices with the threefold back camera also show steady growth. In the I half-year 2019 the share of smartphones with threefold cameras grew in piece expression to 7.4% from 0.1% the previous year. The average cost of such smartphones was 23,250 rubles. The top of popular models in pieces headed Samsung Galaxy A7 64GB, in money Samsung Galaxy A50 64GB is in the lead.

«
Penetration of the mobile Internet in Russia gains steam. It stimulates growth of mobile traffic most of which part is made by posts with photos on social networks. To users it is important that using the smartphone it was possible to take good pictures and to share them with the subscribers. Smartphone manufacturers timely respond to the request of users therefore we see decrease in a share of smartphones with one back camera. Existence of two and more cameras gives to users different viewing angles, a better blurring effect of a background and many other functions for creation of photos in different variations,
noted David Borzilov, the vice president for sales Svyaznoy - Euroset
»

For the first half of the year Russians purchased online more than 2 million devices for 42 billion rubles

On July 15, 2019 "the M of Video Eldorado Group reported results of development of Internet sales of smartphones in the first half of the year 2019. The Xiaomi company was the leader, and every second smartphone purchased by Russians on the Internet is made by one of the Chinese brands - Xiaomi, Honor or Huawei. In total Russians purchased online more than 2 million devices for the amount about 42 billion rubles that on a third exceeds indicators of the first half of the year 2018 in money and pieces. The share of Internet sales reached record 20% of a total turnover of category and 16% on piece sales. The average price remained at the level of 19,000 rubles that is one quarter higher than the average check in retail. Sales of the M of Video Eldorado Group exceed market indicators by 1.5 times in pieces and nearly two in money.

Internet sales of smartphones in the first half of the year 2019

According to the results of six months the Xiaomi company became the market leader on piece sales of smartphones in the online channel. The most popular smartphone was Xiaomi Redmi 6A 16Gb. The cumulative share of Xiaomi, Huawei and Honor in kind increased to 50% that it is twice more, than for the same period of last year. In general on the market about 40% of the sold smartphones are the share of these brands, and Honor 7A was the most popular smartphone. In terms of money leadership holds Apple in the online channel.

The share of the Chinese brands reached a historic high
«
Internet sales remain one of key drivers of the Russian market of smartphones. Traditionally online the known brands of which products buyers are completely sure are in demand. Gain of positions of the Chinese brands speaks about the growing recognition and trust to their devices. The Xiaomi company, thanks to the balanced range and broad representation of goods at the affordable price became the leader in the Russian online market for the first time. So, in the first half of the year there were Redmi Go, Redmi Note 7 and others,
notes Vladimir Chaika, the Head of Department "The mobile equipment" in the M of Video Eldorado Group
»

According to the results of the first half of the year in the Russian online market the share of smartphones in price range increased to 15 thousand rubles and also bonus models worth over 50 thousand rubles. About 55% of piece sales are the share of the first segment. The highest dynamics in this price range was shown by Chinese brands offering a wide choice of high-quality and productive smartphones at the democratic price with a large number of necessary functions and technologies including the NFC chip, the fingerprint sensor, two SIM cards, the frameless screen and the high-quality camera.

The bonus price segment increased a share by 1.5 times up to 7.5% in pieces. Positions of Apple and Samsung are traditionally strong, and they are competed by Huawei and Sony. Positive dynamics is promoted by the trade-in programs for exchange of old devices on leaders.

7.6 million phablets for the total amount about 156 billion rubles are sold for the first half of the year in Russia

On July 10, 2019 Svyaznoy consolidated company - The Euroset announced the analysis of sales of phablets in the Russian market of smartphones in the I half-year 2019. According to the retailer the share of smartphones with the screen more than 5.6 inches from January to June made in piece expression 45% against 12% for the same period of 2018.

Phablet

In 6 months in Russia 7.6 million phablets for the total amount about 156 billion rubles were sold. Growth year-on-year was 3.7 and 2.6 times in pieces and money respectively. The average cost of the device fell by 30% and was 20,375 rubles. In total from January to June, 2019 in Russia 17 million smartphones for the amount more than 216 billion rubles were sold.

Positive dynamics of market development of phablets is affected by constantly extending range of this type of gadgets. Decrease in average cost of the device is also explained by the growing range. Clients wait for as much as possible functions and opportunities from the device. Phablets can combine properties not only the smartphone, the tablet, the e-book, the camera, but even the game console or the personal computer that, undoubtedly, attracts more and more buyers.

According to the results of 6 months by the number of the sold phablets in the market Samsung from market shares of 36% is in the lead. Further Honor from 33% of the market and Huawei from 12% were located. In money also Samsung from market shares of 35% is in the lead.

Top of 5 phablets in the I half-year 2019 in pieces:

# Honor 8X

  1. Honor 10 Lite

# Samsung Galaxy A7

  1. Honor 7A PRO
  2. Samsung Galaxy A50


Top of 5 phablets in the I half-year 2019 in money:

  1. iPhone XR (64Gb)

# iPhone X (64Gb)

  1. iPhone XR (128Gb)
  2. Honor 8X (64Gb)
  3. Samsung Galaxy A50
«
Start of all flagman smartphones happens in a segment of phablets, however in parallel with them producers release more simplified versions of the most demanded models with a size of display less than 5.6 inches. We see that the display size for many years increases from a quarter in a quarter. So, for example, not so long ago smartphones with the 4-inch screen were the most mass devices, now the main share of sales is the share of devices with the display in 5 inches, and gradually the trend is displaced for benefit of models with the screen of 5.5 inches,
emphasizes David Borzilov, the vice president for sales to Svyaznoy-Euroset consolidated company
»

Growth in sales of smartphones in Russia for half a year for 12% to 216 billion rubles

On July 1, 2019 the M of Video Eldorado group announced results of market development of smartphones according to the results of the first half of the year 2019. On group appraisal, during the period from January to June of sale of smartphones in Russia also 12% in money up to 13.5 million pieces and 216 billion rubles grew by 6% in pieces. The average price was about 16 thousand rubles. The Samsung company returned leadership, having outstripped the Honor brand, at the same time the market continues to concentrate around five leading players. The cumulative share of Samsung, Apple, Xiaomi, Huawei and Honor reached 82% in pieces and 92% in money.

From shares about 30% on piece sales by the most popular smartphone manufacturer among Russians in the first half of the year 2019 there was Samsung. The South Korean company bypassed the leader of the first quarter – the Honor brand, thanks to demand of a line of Galaxy S10 and successful start of sales of the Galaxy smartphones of an A-series. The cumulative share of Huawei and Honor reached about 33%. Apple and Xiaomi were also among five most popular brands. In total leaders occupied 82% of the market on natural sales, the previous year their share made 65%, and in 2017 did not exceed 50%. So, in 2014 the five of the most popular brands on piece sales of smartphones in the Russian market included except Samsung Fly Apple, Nokia (Microsoft) and Sony.

Market shares top-5 brands of smartphones, January-June, 2014-2019 (piece)

Dynamics of sales of the M of Video Eldorado Group according to the results of the first six months of year was three times higher market in pieces and more than twice higher in money what was promoted expansion of the range, advantageous price offers, preorders for the released phones and also, development of the separate m_mobile brand from M.Video and the selected telecom zones in Eldorado where users can personally test smartphones.

«
The Russian buyers even more often give preference to already known brands which have high level of confidence, offer a wide choice of models in different price segments and also high-quality service maintenance. Most actively among leaders influence of the Chinese producers grows – Huawei, Honor and Xiaomi which flexibly approach pricing, actively invest in marketing support, at the same time offer functional devices with all necessary technical solutions,
told Vladimir Chaika, the Head of Department "The mobile equipment" M of Video Eldorado Group
»

More than 35% of the devices sold in Russia are the share of smartphones from 10 to 20 thousand rubles. The similar share is occupied by smartphones from 5 to 10 thousand rubles, and these categories continue growth, as well as a segment over 50 thousand rubles. Demand for smartphones, on the contrary, decreases to 5 thousand rubles.

Users even more often interact with the smartphone, it becomes a fixed asset of Internet access and allows to solve even more routine tasks. Considering a trend, producers offer model everything with bigger diagonal. According to the results of the first half of the year about 77% were the share of smartphones from 5 inches (from 12.7 cm) on piece sales that is twice higher, than the previous year. In January-June, 2017 the amount of devices with big diagonal was only 20%. Thus, in the market there is practically no device left with the screen less than 4 inches, and diagonal from 6 inches becomes the next standard. All released smartphones of 2019 are distinguished by such value of the screen.

In the second quarter in the Russian market a number of phones, the majority of which are in the most popular price segment from 10 to 20 thousand rubles, went on sale: Huawei P30 Lite, Huawei P smart Z, Honor 10i, Samsung A10, A30, A50, Vivo Y17. In more expensive price segments the flagman Huawei P30 and P30 Pro, Honor 20 and Oppo Reno models appeared.

Mass emergence a sliding selfie camera became one of the most noticeable trends in design of smartphones that allows to make a framework less and to increase the area of the screen. So, with similar technology in the Russian market Xiaomi Mi 9, Huawei P Huawei Y9 Smart Z, Prime 2019, Vivo V15 and V15 Pro, OPPO Reno 10x Zoom are already available.

11.6 million mobile phones are imported to Russia in the first quarter

As reported in analytical center GS Group on June 18, 2019, in the first quarter 11.6 million mobile phones were imported to Russia. 42% (6.32 million pieces) make smartphones with the estimated price in shop from 7 thousand rubles of them.

All import volume grew by 15% (1 sq. 2019 by 1 sq. 2018), similarly in 1 quarter of 2018 the gain was only 4%. However the structure of a gain changes: if in 2018 the market added by quantity at the expense of smartphones, then in 2019 - at the expense of push-button cell phones and cheap smartphones to 7 thousand rubles in retail.

The leading three of brands of smartphones in Russia remains without changes: Samsung, Apple and Huawei. Together they occupy 85% of the market of smartphones with the price of 7 thousand rubles, and this share grew in comparison with the same periods of 2018 and 2017 (71% and 76% respectively).

However in the very first three there are cardinal changes. According to GS Group, the Chinese company Huawei with a supply rate of 1 quarter of 2,6 2019 of million of pieces for the first time has come out on top on deliveries. At the same time, if the Korean Samsung saved volumes in 1 quarter of 2019 (2.1 million pieces, a gain of 11% in 2019 after decrease by 7% in 1 sq. 2018), then deliveries of the Apple smartphones dropped almost twice (by 46% up to 0.6 million pieces).

As noted in GS Group, because of trade wars between the USA and China mobile phone manufacturers began to change localization. For example, if in 1 quarter of 2018 of Samsung delivered 65% of smartphones from Vietnam, and 35% from China, then in 1 sq. 2019 the Chinese volume was completely thrown on the plant in India (39% of deliveries) while the Samsung plant in Vietnam saved the order for Russia — 61% of deliveries. Apple still manufactures smartphones in China and is only going to go to India.

The Huawei company became the leader in 1 quarter of 2019 in the import volume of smartphones to Russia, having increased deliveries to 2.5 times (from 1.1 million pieces in 1 sq. 2018 up to 2.6 million pieces in 1 quarter of 2019). At the same time in 2018 the company also showed a gain in Russia: from 0.6 million pieces in 1 quarter 2017 up to 1.1 million pieces in 1 sq. 2019. The key reason is that the Russian consumers highly appreciated technological effectiveness and reliability of the Huawei smartphones at rather moderate price.

The overvaluation of brands of Apple and Samsung in the opinion of buyers for lack of bright disruptive models from these companies and difficult economic country situation is available. Because of pressure of U.S. authorities upon the company and failure from joint work of a number of partners in 2 and 3 quarters 2019 of Huawei will concede again Samsung, but at the end of year will recover leadership in the Russian market after a release of own operating system instead of Android and a number of perspective services for owners of Huawei.

«
Situation with failure from cooperation with Huawei of a number of popular western messengers and social networks (WhatsApp, Instagram, etc.) — an exceptional case in the history. Actually these services voluntarily concede the market to the Chinese analogs, for example, to WeChat which quickly will rise on the Huawei operating system, and then and to other Chinese brands — consider in GS Group.
»

Behind top three there is also a movement. The first after top-3 goes Xiaomi which saved the volumes in 1 quarter of 2019 (486 thousand pieces) after take-off in 1 sq. 2018 (from 107 thousand pieces to 491 thousand pieces) and in general applies for permanent membership in top-5. Also saved volumes of ASUS (73 thousand pieces) after falling from 164 thousand pieces in 1 quarter of 2018.

Other A and B brands of smartphones in 1 quarter of 2019 hand over positions. Deliveries of Sony decreased from 135 to 40 thousand pieces that is comparable with the level of 2017. Deliveries of ZTE fall in 1 quarter of year several years (and at the end of year there is also a falling): from 195 thousand pieces in 1 quarter of 2017 up to 129 thousand pieces in 1 quarter of 2018 and, at last, up to 26 thousand pieces in 1 quarter of 2019.

Similar situation with LG: if in 1 quarter of 2017 152 thousand pieces, then were imported to 1 quarter of 2018 already of 95 thousand pieces, and to 1 quarter of 2019 — only 5 thousand pieces.

The line occupying the fourth at the end of 2018 Nokia company in 1 quarter of 2019 reduced rates: from 234 thousand to 15 thousand pieces that will not allow it to bypass Xiaomi at the end of 2019 again any more. At the same time below an estimated level of 7000 rub (including push-button mobile phones) Nokia also gradually hands over positions: The 4th line in 1 quarter 2017 (463 thousand pieces), the 5th line in 1 quarter of 2018 and the 7th place in 1 quarter 2019 (250 thousand pieces).

One of leaders in sales of smartphones in China the Oppo company (enters into the Chinese BBK Electronics group) could not subdue the Russian market so far: deliveries grew to 19 thousand pieces in 1 quarter of 2019 from 11 thousand pieces in 1 quarter 2018 years. At the same time other brand — BBK — develops in Russia quicker: import of the Vivo smartphones grew in 1 quarter of 2019 from 6 to 43 thousand pieces.

Brands of Meizu and Philips did not import smartphones to Russia in 1 quarter of 2019 that can speak about their leaving from the Russian market. Import of Lenovo also stopped in 1 quarter of 2019, however deliveries of other brand of the company — Motorola — made 9.5 thousand pieces (Lenovo redeemed division of Motorola Mobility from Google in 2014) that can speak about the strategy of cultivation of the markets between brands: Motorola for smartphones, Lenovo — for notebooks. At the same time in 1 quarter of 2017 of delivery of Meizu and Lenovo exceeded 120 thousand pieces.

In general, by GS Group estimates, the Chinese brands take the market of expensive smartphones in Russia more and more. So, the general share of the leading Chinese brands (Huawei, Xiaomi, ZTE, Meizu, Motorola/Lenovo, Vivo, OPPO and Oneplus) in a segment of smartphones from 7000 rub in 1 quarter 2019 exceeded 51% while in 2017 hardly reached 24%.

In a segment of cheap smartphones and push-button mobile phones leaders save the positions with slight fluctuations, at the same time several new brands appeared.

BQ (Bright&Quick) increased deliveries from 415 to 660 thousand pieces, at the same time the brand is present and levels of 7000 rub in retail are higher. In general deliveries of phones and smartphones of a brand to Russia grow: from 546 thousand pieces in 1 sq. 2017 up to 554 thousand pieces in 1 sq. 2018 and up to 683 thousand pieces in 1 quarter of 2019 (all segments).

BQ is followed by Texet which reduced deliveries in 1 quarter 2019 to 585 thousand pieces from 712 thousand pieces in 1 quarter of 2018 (at the same time in 1 quarter of 2017 import was at the level of 223 thousand pieces).

The Maxvi brands (for 10% up to 377 thousand pieces) and Dexp (for 25% up to 332 thousand pieces) save growth while reduce Fly volumes (by 56% up to 255 thousand pieces — all deliveries) and Nokia (for 20% up to 251 thousand pieces — a segment up to 7000 rub).

According to GS Group, in this segment there is a dramatic change of leaders: so, deliveries of phones of the Indian Micromax Mobile completely stopped though in 1 quarter 2017 their import made 909 thousand pieces (was only at Samsung taking into account all deliveries more). However there are other applicants for the first positions: the Inoi brands (the Russian company Ina) and Itel (it is imported by TFN company which also delivers Joys) brought to Russia in 1 sq. 2019 793 and 361 thousand pieces respectively that brings the Inoi phones to the first place in a cheap segment at least on deliveries, analysts noted.

Growth of online sales of smartphones in 4 months for 35%

On June 10, 2019 Svyaznoy consolidated company - The Euroset announced results of online sales of smartphones in the Russian market from January to April, 2019. According to the retailer, in 4 months Russians purchased at 35% of smartphones more in piece expression, than the previous year that became the most record sales increase of smartphones on the Internet for the last three years. The total quantity of the sold smartphones in online channels made 1.4 million devices for the amount of 27 billion rubles.

The average cost of the smartphone purchased online grew by 3% and was 19,380 rubles. The most popular brands in pieces of steel of Xiaomi, Honor and Samsung. In money, as well as the previous year, the leader remained Apple.

«
In 2019 the share of online sales continues the growth. It is connected with the fact that in regions the Internet became more available, the share of mobile traffic grows, and retailers high rates develop the logistic infrastructure that does process of the goods delivery to the buyer much quicker. I will note, online Russians make the choice for benefit of more expensive smartphones. From April to May the largest growth in money was shown by category of smartphones worth over 60 thousand rubles — 24%". Mainly it is the flagman models meeting all modern user requirements
noted David Borzilov, the vice president for sales Svyaznoy - Euroset
»

Structure of the park of smartphones at the price

In the analysis of cost of the smartphones which are in ownership according to J’son & Partners Consulting for May, 2019, it became clear that 80% of the smartphones used in Russia are in price range from 7 to 30 thousand rubles. At the same time the research J'son & Partners Consulting confirmed that women in general own more expensive smartphones, especially age group of 18-25 years.

At data analysis on acquisition of smartphones it was analyzed both prescription of acquisition of the smartphone, and structure of acquisition of devices in the place of their acquisition. So, in particular, it became clear that about 2% of the available park of smartphones were purchased by owners not in outlet, and from hands. More than a third of respondents purchased the smartphone in online store, Russian or foreign.

Quite interesting was an analysis result of places of acquisition of the smartphone depending on the income of the owner. It became clear that there is a steady correlation between income and a share of the owners who purchased the smartphone in brand salon of the producer and in a point of the cellular retail which is not belonging to the operator. The share of the respondents who purchased the smartphone in brand salon grows with growth of income, and the share purchased in a point of cellular retail, on the contrary, falls.

Entry into the Russian market of the realme brand

On May 27, 2019 the smartphone manufacturer of realme announced entry into the Russian market. Since June, 2019 in several European countries, including Russia, representative offices open. Founded in May, 2018, the brand makes smartphones which have stylish design and powerful performance. Besides, realme is focused on online sales, simplifying process of commission of purchase for consumers. Read more here.

2018

IDC: The Russian market of smartphones grew by 17.3% to $7.56 billion

On February 14, 2019 "IDC Russia" reported that the Russian market of smartphones reached record value in 2018 – 7.56 billion US dollars, and in piece expression broke a 30-million barrier for the second time (the first in 2016).

The average price on Android smartphone grew from 150 to 184 dollars (retail price excluding VAT) – the highest rate after 2014. Ruble exchange rate in 2018 was 7.5% lower in relation to dollar, than in 2017 therefore approximately on a third the price in rubles grew by Android device.

IDC notes that in 2018 consumers selected more expensive and technological models from many countries of Central and Eastern Europe, however in Russia this trend was especially noticeable.

«
At the most popular models in Russia now the big screen with wider aspect ratio and existence of NFC for payments. Also the tendency to large volumes of memory and emergence of models with memory of 512 GB is traced. High growth of the market was in terms of money observed in the first half of the year before falling of cost of ruble. It is clear, that many Russians feel economic downturn, nevertheless they became more exacting to technical characteristics of phones and want optimal price relation and quality
Olga Babinina, the analyst in IDC Russia
»

Huawei together with the Honor brand the second quarter in a row bypasses Samsung on deliveries of smartphones to Russia. Apple remained on the third place, and Xiaomi on the fourth, according to the last results of IDC Worldwide Quarterly Mobile Phone Tracker.

Shares of brands in the market of smartphones

Samsung saved a market leadership of smartphones in 2018, but the competition from Huawei is very strong, the Honor brand works especially well in Russia and makes nearly three quarters of sales of Huawei company.

At Apple 2018 was again strong year, but the fourth quarter showed potential weakness. The company noted that it will concentrate on bonus models, but in Russia, as well as in many other countries, in the fourth quarter affairs went not especially well. Deliveries of Apple to Russia were close to five million from year to year, but in the fourth quarter 2018 they decreased almost by 25% in comparison with the same period of previous year.

Share of residents of the countries which do not have the smartphone, 2018
Share of residents of the countries which do not have the smartphone, 2018

The fourth quarter showed that rates of development of the Russian market of phones can become more reserved. The volume of all market in the fourth quarter in dollars was not higher, than in the same quarter 2017.

The Russian market showed growth by 14% — Canalys

In 2018 the Russian market of smartphones grew by 14% in pieces (data of Canalys).

M.Video: The Russian market of smartphones grew by 2.5% in pieces and 20% in money

In 2018 sales smartphones in Russia made 29.6 million pieces for the amount more than 465 billion rubles that exceeded indicators of 2017 for 2.5% and 20% respectively. The average price in comparison with 2017 was 17% higher and reached 15,700 rubles, reported on January 23, 2019 in M.VideoEldorado the - group.

Svyaznoy: The Russian market of smartphones grew in money for 17%

For 2018 in Russia 3% more smartphones, than are sold the previous year, in terms of money growth was 17%. TAdviser On January 10, 2019 reported about it in the united company "Svyaznoy Euroset". At the same time the general sales of gadgets made over 30 million pieces for the amount of 469 billion rubles. The average price on the smartphone grew in a year by 17% up to 15.7 thousand rubles. For comparison, in 2017 the average bill for the device was 13.4 thousand rubles.

Photo: hitech.vesti.ru

At the end of 2018 the greatest gain in terms of money showed a segment over 40 thousand rubles (+5 items year-on-year) which occupied 31% of the market of smartphones. In pieces the gain of a segment made 37%, in money — 49%. iPhone X iPhone iPhone 8 Plus (64GB) became the most popular models in money (64GB), 8 (64GB). In kind the maximum gain made a segment of 10-15 thousand rubles (+6 items) from market shares of 21%. In piece expression the gain of a segment made 43%, in money — 44%. The most popular models in pieces of Honor 9 Lite steel of 32 (GB), iPhone SE 32 (GB) and Samsung Galaxy J1.

According to Svyaznoy Euroset company, by the number of the sold smartphones at the end of 2018 in the Russian market is in the lead Samsung, further HuaweiHonor were located Apple. In money Apple is in the lead, follow Samsung, Huawei Honor.

«
Buyers continue to make the choice for benefit of technological models of the smartphones having the NFC function, double and threefold cameras and other popular options. In the market there is a large number of devices which have excellent technical characteristics and good price relation and qualities. Also we see that in 2018 the Chinese producers, thanks to consolidation of such components as the high performance of the device, modern design and the affordable price strengthened the positions — the vice president for sales to Svyaznoy Euroset consolidated company David Borzilov emphasized.
»

2.2 million smartphones with wireless charging for 130 billion rubles are sold

On March 27, 2019 the Svyaznoy company announced the analysis of sales of smartphones with function of wireless charging in the Russian market in 2018. From January to December, 2018 sales of smartphones with wireless charging in comparison with 2017 grew by 48% in piece expression and for 131% in terms of money.

In total at the end of 2018 2.2 million smartphones with function of wireless charging for the total amount more than 130 billion rubles were sold. The leader in pieces became Apple of which 66% of all sold devices were the share, Samsung from 30%, on the third Huawei – 3% was at the second place.

«
The average cost of the smartphone with wireless charging in 2018 was 59.3 thousand. Explosive growth in sales of smartphones with this function is connected with the fact that producers equip all the flagman models with a technology stuffing for wireless energy transmission. In a year the greatest gain showed Apple. Sales of smartphones with wireless charging of this brand grew by 3.7 times — the vice president for sales to Svyaznoy-Euroset consolidated company Borzilov David emphasizes.
»

The most popular smartphones in Russia with wireless charging iPhone of steel 8 and 8 Plus, iPhone X and Samsung Galaxy S8.

The Russian market recovered from crisis. Apple was inferior to Huawei on sales

On September 12, 2018 the Counterpoint Technology Market Research analytical company published some results of a research of the Russian market of smartphones. Judging by data of experts, in the three of the largest producers there were changes — Huawei outstripped Apple.

According to calculations of Counterpoint Technology Market Research, in April-June, 2018 25% more smartphones, than were sold the previous year. These growth rates were the greatest for the second quarter from the moment of financial crisis in 2014.

Apple was inferior to Huawei on sales of smartphones in Russia
Apple was inferior to Huawei on sales of smartphones in Russia

Researchers explain high dynamics with heavy expenses of consumers in general, an exit of new products, expansion of programs trade-in (when in shops it is possible to exchange the old device for new with surcharge) and discounts from distributors before and during the FIFA World Cup.

The analyst of Counterpoint Technology Market Anshika of Jane (Anshika Jain) says that the average bill for smartphones in Russia increases because users change the budget tubes for devices of the average level. Producers, especially Chinese, actively release more and more devices on average a segment and attract people with different offers. In addition to trade-in, in the market options of acquisition of phones together with attractive tariff plans of operators and an opportunity to purchase the smartphone with higher amount of memory without overpayment are available.

Thanks to such offers, according to Jane, the Chinese brands could increase a share in the Russian market of smartphones to 41% in the second quarter of 2018. It concerns also such important segment as devices worth $100-199, the expert added.

The deputy the director of Counterpoint Technology Market Tarun Pathak whose words are cited in the press release, pays attention that Huawei became the most fast-growing brand in the market of smartphones in Russia according to the results of the second quarter 2018 and outstripped Apple by the amount of implementation.

«
Growth of Huawei is explained by close partner couplings in retail and also cooperation with creators of local ecosystems, such as "Yandex" which helped the company to increase a business scope in the Russian Federation. Besides, the Chinese brands increase the presence at the Internet now, using the main platforms of e-commerce for increasing sales — emphasized Patacas.
»

The largest smartphone manufacturers in the Russian market, data of Counterpoint Technology Market Research
The largest smartphone manufacturers in the Russian market, data of Counterpoint Technology Market Research

As it is possible to see higher in the table, Huawei not only overtook Apple on quantitative sales of phones in Russia, but came very close to Samsung — shares of the companies in April-June, 2018 made 30% and 29% for benefit of South Korean corporation so far. The indicator of presence of Apple decreased to 10%, and Xiaomi with result in 8% afterwards was located.

The share of Xiaomi in the Russian market of smartphones in a year more than doubled thanks to strong sales of devices with price labels from $100 to $150. The Chinese company increased sales by 135% whereas Huawei registered even more impressive growth — for 240%. The Honor 9 Lite model from Huawei became the most sold smartphone among Russians in the second quarter 2018.

The Russian BQ Mobile brand entered the five of the smartphones with a 7 percent share and growth by 104% leading in the Russian market. Success of BQ Mobile is connected with a strong product portfolio worth up to $100, is explained in a research.

Sales of smartphones for $100-199 in April-June, 2018 jumped by 80% year on year and made record 36% in a total amount of the market. The share of phones with support of LTE in a year grew from 80% to 89%. 84% of sales of smartphones in Russia were the share of the five of leading manufacturers.

Analysts note that Russia remains the important market for Apple, however uncertainty in trade relations between the Russian Federation and the USA and also sanctions can affect business of the company in the Russian market.[1]

Change of the leader for the first time since 2007. Huawei came out on top

In the middle of 2018 in the Russian market of smartphones for the first time more than in 10 years the leader was replaced. Huawei which on piece sales of tubes outstripped Samsung became it.

In each of three weeks from May 28 to June 17 it was the share of Huawei and its Honor subbrand according to 23.8%, 24.2% and 26.5% of the Russian market of smartphones in kind. Indicators of the former leader of Samsung for these periods were 22.9%, 23% and 23.2%, Vedomosti writes, referring to data of the partner company of several producers of electronics and the employee of one of retailers.

The piece Huawei smartphones in Russia for the first time were the highest
The piece Huawei smartphones in Russia for the first time were the highest

In a conversation with the newspaper the leading analyst of Mobile Research Group Eldar Murtazin noted that since 2007 Samsung steadily was in the lead on quantitative sale of smartphones. The expert connects ascension of Huawei on the first place with the balanced lineup.

Samsung almost does not sell smartphones worth up to 10 thousand rubles, and has not enough models for 10-15 thousand rubles the South Korean brand while products of Huawei are well provided in these segments, Murtazin noted.

In February, 2018 Huawei for the first time  bypassed  by the number of the sold smartphones in Russia Apple and came to the second place. The share of the Chinese producer then grew from 14.5% to 17.4% while the share of Apple decreased from 15% to 14%. And to the second half of 2016 the share of Huawei was rather small and was measured by about 2-2.5%.

The marketing director of Huawei Consumer Business Group Maria Danilina considers that the company began to strengthen quickly positions in the Russian market thanks to optimal for the country of price relation, quality and characteristics of the devices offered by vendor. Marketing strategy is expected not only increase in brand recognition, but also on increase in loyalty of buyers — the Huawei smartphones buy again, she said.[2]

FAS can oblige smartphone manufacturers to pre-install the Russian applications

According to Federal Antimonopoly Service of the Russian Federation (FAS), the mobile devices which are on sale in the territory of the country should be delivered with the pre-installed Russian applications. Standard programs, such as browser, mail, player, etc., as reported on the official site of FAS mean, the regulator suggested to prepare the relevant amendments in the current legislation.

"If there is the Russian analog the application which the mobile device manufacturer is going to preset for the communication device, such analog should be offered the consumer also. It not only will expand possibilities of the choice for users, but also will begin good support to compete for the Russian developers with digital giants", - FAS reports.

According to representatives of the regulator, users with complaints to impossibility to delete some applications from tablets and smartphones often address them. As considers FAS, users should have an opportunity to delete from devices pre-installed applications unnecessary them, except for software necessary for normal functioning of the tablet or the smartphone.

M.Video and Eldorado: Russians purchased 6.3 million smartphones in the first quarter

M.Video company, the Russian seller of electronics and home appliances, and Eldorado published on April 9 the report on results of the Russian roar of smartphones for the first quarter 2018. Sales in comparison with January-March, 2017 grew by 23% in money and remained practically at the level of last year in pieces. The share of online sales reached 20%.

According to M.Video and Eldorado companies, the size of the market of smartphones according to the results of the first quarter 2018 was 95 billion rubles and 6.3 million devices that respectively for 23% and 2% is higher, than the previous year.

The Segment of smartphones in the market continued to develop, showing growth on all key parameters. At the same time growth rates of sales in piece expression decreased that, on the one hand, is characteristic of the first quarter, with another – says that from a status of intensive growth the market passed to qualitative demand for smartphones, experts of the companies consider.

The average price on smartphones in a feather was quarter 2018 15 thousand rubles against 12,500 rubles for the same period of last year, thus, growth was about 20%. But if to estimate the average price in dynamics quarterly, then it is visible that in 2018 it decreased a little. The peak fell on the 4th quarter 2017 when sales started iPhone 8 and iPhone X. In the first quarter 2018 the high rate of the average price supported start of sales Samsung Galaxy S9| by S9+.

Demand growth is observed in all price categories, except the most budget — up to 5 thousand rubles. The mid-price segment from 10 to 20 thousand rubles grew by a third in piece expression concerning the first quarter 2017. The Segment over 30 thousand rubles grew almost by one and a half times. M.Video and Eldorado explain this trend with the fact that on average a price segment there are more and more interesting offers from the Chinese producers to which trust grows and stimulates demand for these devices. Not only leaders from Samsung and Apple, but also top models from Huawei, Nokia, Xiaomi, etc. get to higher price segment now.

Online sales of smartphones in the Russian market in the first quarter reached 2018 835 thousand pieces that is respectively 28% more, than the previous year. Sales in money grew practically twice and reached 19.5 billion rubles. Internet sales continue to stimulate market development in a telecom segment — about 20% of the market in terms of money and 14% — in natural are the share of online. Still a year ago 13% in terms of money and 10% in natural of total sales were the share of online.

According to the results of a reporting quarter of 2018 the Chinese brands (Huawei, Honor, Meizu, Mi, ZTE, Nokia, Oppo) occupied up to 35% in pieces and about 26% in money. At the same time the cumulative share of brands of Huawei and Honor in pieces reached about 17.5% that allowed to overtake the closest competitor on piece sales — Apple and to take the second place. In absolute expression of sale of Huawei and Honor grew twice in comparison with the first quarter 2017.

According to M.Video and Eldorado, 4G-smartphones promptly force out the previous generations. According to the results of the first quarter 2018 the share 4G is in piece sales of smartphones at the level of 87%.

2017

IDC: The market of smartphones in Russia was completely recovered after decline of ruble in 2014

According to these IDC, the total cost of the Russian market of smartphones considerably grew in 2017 that occurred partly thanks to Apple, and approached pre-crisis value of 2014 — in comparison with 2016 growth expressed in US dollars was nearly 25%. This effect is especially noticeable as it is recorded against the background of the continuing weakening of consumer confidence and decrease in a real income of Russians from the moment of the beginning of decline of ruble at the end of 2014.

The cost of the market of smartphones in Russia approached pre-crisis level. Photo: wylsa.com
The cost of the market of smartphones in Russia approached pre-crisis level. Photo: wylsa.com

As Simon Baker, the program manager of researches of the market of the IDC CEMA mobile phones noted, also price market segmentation changed. If crisis of ruble doubled the market share falling on the cheapest models of smartphones, then now the market practically returned to pre-crisis segmentation though Russians are worse provided in dollar expression, the expert claims.

By estimates of analysts, growth of the market is caused by sale of 4G-devices which are more expensive, than 3G-devices. In the first quarter 2016 less than 50% of the smartphones sold in Russia were LTE compatible while in the fourth quarter 2017 this indicator exceeded 80%.

According to the research IDC Worldwide Quarterly Mobile Phone Tracker, the Russian market of smartphones in the last quarter 2017 continued to show good dynamics, thanks to sales of the new iPhone models, including the iPhones 8 and 8 Plus devices released at the end of September and also the bonus iPhone X model which appeared in November.

According to Natalya Vinogradova, the manager of the research program of the market of mobile devices in IDC Russia, the fourth quarter became the best for Apple in the Russian market and by results exceeded even the fourth quarter 2014 in which the average nominal rate of ruble to dollar was for the period much higher than modern indicators. The release of new models allowed Apple to increase the share in total market of smartphones to 20% whereas the share of the company for the same period of 2016 made 10%.

Though a large number of sales of products of Apple still are the share of budget models, the offer of the company makes the little less than a half of total amount of the Russian market of smartphones, counted in IDC. On total revenue for 2017 Apple is in the lead in Russia with an indicator of $2.6 billion (excluding VAT). It is followed by Samsung with revenue in $1.5 billion.

Meanwhile, by the number of the sold devices first place in the Russian market is won by Samsung which in 2017 sold 50% more smartphones, than Apple. On the second place — Xiaomi company with considerable deliveries of smartphones for two quarters in a row. On the third position — Huawei company: the volume of its deliveries also grows, though is less expressed, than at Xiaomi. The joint share of two Chinese sellers, Xiaomi and Huawei, exceeds a quarter of the market of smartphones on the Android platform in Russia, and on cumulative deliveries they overtake Samsung. According to researchers IDC, these two vendors received the maximum benefit from leaving of Lenovo company which did not deliver smartphones to Russia in the fourth quarter 2017.

«
Recovery of the expense level on devices demonstrates that mobile communication takes more and more important place in life of Russians — Baker added. — It is very well visible on a boom in the field of traffic of data.
»

According to official data of the Government of the Russian Federation, during 2017 mobile traffic of video and data sharply grew and, as of March, 2018, approximately is three times higher, than in 2015. Networks of fourth generation were the main factor of development. In particular, according to the statement of two of three main Russian networks, LTE makes not less than a half of their traffic of data now.

Initially Russia lagged behind the Western European countries on implementation of mobile technologies of fourth generation that was connected including with the shortage of the frequencies available to new networks. Then consumer transition to 4G-devices slowed down after decline of ruble in 2014.

«
The Russian market 4G catches up with the market of Western Europe, and it is expressed in rapid growth of consumption of mobile data, in particular, media and video this — Simon Baker concluded. — Russia will be among the countries with mature market 4G and 5G soon — in the near future.
»

GfK Russia: The strongest growth for 3 years

At the end of January, 2018 the GfK analytical company provided results of a research of the Russian market of smartphones. In 2017 Russians purchased 28.7 million devices that is 9% more than an indicator of year prescription. This gain was the strongest for the last three years, specialists note.

In money the volume of the Russian market of smartphones increased much stronger — by 35% — from 4.8 to $6.5 billion.

Sales of smartphones, data of GfK
Sales of smartphones, data of GfK

In October-December, 2017 in Russia 8.4 million smartphones for the amount of $2.2 billion were sold that respectively for 6% and 36% there are more results of the same period of the 2016th. In kind sales increased for the first time in three years.

In the Russian currency the domestic market of smartphones grew to 128 billion rubles in the fourth quarter and to 382 billion rubles according to the results of all 2017. In 2018 analysts expect insignificant decrease in growth rates of demand.

Also follows from the research report of GfK that in 2017 Russia showed the highest growth rates in dollars in comparison with large regions. The second place on dynamics was taken by Central and Eastern Europe in which sales rose by 26% in many respects thanks to the Russian market. At the same time sale of smart phones on a global scale increased only by 9%.

In pieces of sale of smartphones for 9% as in Russia, at the end of 2017 rose in Central and Eastern Europe and Latin America. Higher growth rates were not anywhere.

It is noted that GfK estimates the market of smartphones on the volume of purchases by end consumers, but not shipments of producers. Calculation is conducted on the basis of the retail sales given monitoring. Market assessment in terms of money is based on not subsidized prices. Data on Russia are based on summing of monthly data from January to December, 2017.[3]

MTS: Record sales thanks to installment purchasings and the credit

In 2017 in Russia the record number of smartphones — 28.4 million pieces is sold. It is 6% more, than in the 2016th. In terms of money the market grew by 17.3% and reached 386 billion rubles, counted in MTS telecommunication company.

Before Russians purchased the greatest number of smartphones in 2014 — 27.6 million units. This record was caused excessive demand for expensive electronics, including smartphones, in December, 2014 because of devaluation of ruble. In 2015 the market of smartphones in pieces dropped approximately by 5%.

In Russia the record on sales of smartphones is set
In Russia the record on sales of smartphones is set

The main driver of growth of the market in 2017 analysts of MTS called purchases of devices by installments and the credit which also promoted increase in the average price of the smartphone — from 12.3 thousand rubles in 2016 up to 13.6 thousand rubles a year later.

The fact that the Russian market of smartphones grows much quicker in money, than in pieces, in MTS is explained with the shift of consumer demand towards more expensive products. It occurs owing to several reasons.

First, devices with high-quality screens and good cameras which allow to communicate with comfort on social networks are required for users and to solve their daily problems. Besides, the popularity of more expensive smartphones is warmed up by marketing actions and financial offers, experts note.

Samsung which share in 2017 made 25.2% in pieces and 29.2% in money remained the leader of the Russian market of smartphones in terms of quantitative sales. At Apple these indicators appeared equal 12.8% and 34.4% respectively.

Huawei in which asset 9.6% of the Russian market of smartphones in pieces and 8.5% in money appear also got into top three. Also in MTS pay attention to Xiaomi of which 3.9% of sales of tubes in piece expression and 3.7% in monetary were the share.

Counterpoint Research

Deliveries of iPhone to Russia grew by 56%

In July-September, 2017 the Russian market of smartphones grew by 38% in quarterly and for 7% year on year, and deliveries of iPhone were record, the Counterpoint Research research company reported on November 15.[4]

Apple delivered the record number of iPhone to Russia
Apple delivered the record number of iPhone to Russia

According to experts, about 9 million smartphones came to the specified period in the Russian Federation. Among the factors which provided positive dynamics, analysts called demand of inexpensive devices, the growing online sales and distribution of programs of exchange of old devices on new with surcharge (trade-in and buy back).

«
The Russian market of mobile phones grew in the third quarter against the background of a large number of marketing campaigns of new Chinese brands and the accompanying reduction of prices in all leading retail networks — the specialist of Counterpoint of Minakshi Sharma comments on the report.
»

In turn, his colleague Tarun Pathak paid attention to record sales of Apple in Russia. According to Counterpoint estimates, in the third quarter of delivery of iPhone to the Russian Federation increased by 56% that was promoted by reduction of prices of the previous models before a release of new iPhones and also programs of exchange of old "apple" devices on new with surcharge at M.Video, Svyaznoy, Euroset both others online and offline retailers.

Specialists do not give exact digits on iPhone, but specify that in the third quarter Apple conceded the 2017th in Russia only of Samsung and controlled 15% of the market against 10% the previous year. Knowing a total indicator of deliveries of smartphones to the Russian Federation, it is simple to count that the contribution of Apple was 1.35 million devices.

Leaders of the Russian market of smartphones
Leaders of the Russian market of smartphones

29% fell to the share of the market leader of Samsung that corresponds to 2.6 million smartphones, and the third place was taken by Huawei with an indicator of presence of 11% (990 thousand devices).

Analysts especially noted Xiaomi which entered the five of the leading brands of the Russian market of smartphones with a share in 4%. The Chinese producer increased deliveries to 325% year on year and became the most fast-growing vendor in top-5.

First quarter: record share of Samsung and Apple

The joint share of Samsung and Apple in the Russian market of smartphones reached record level, analysts of Counterpoint Technology Market Research report. According to them, in January-March, 2017 these two companies jointly controlled more than two thirds (66.6%) of sales in terms of money.

Samsung and Apple were in the lead on the volume of the delivered smartphones to the country. 31% of total number of the shipped devices fell to the share of a South Korean brand. Specialists estimated the deposit iPhone at 12%, having added that iPhones 5s remains the model of Apple which is the most demanded at Russians.

Shares of the largest smartphone manufacturers in the Russian market, data of Counterpoint Technology Market Research for the first quarter 2017.
Shares of the largest smartphone manufacturers in the Russian market, data of Counterpoint Technology Market Research for the first quarter 2017.

Besides, in top-5 smartphone brands of the country the Chinese companies Huawei and ZTE with indicators of presence of 9% and 4% and also a brand Tele2 (4%) entered.

Specialists note that vendors from the People's Republic of China actively cooperate with the largest local distributors of the mobile device and with their help strengthen positions in the growing Russian market. For example, the Xiaomi company vigorously develops business in Russia due to expansion offline retail and opening of physical shops. The total share of the Chinese brands in the domestic market is estimated at 26%.

In general, deliveries of smartphones to the Russian Federation in January-March, 2017 grew by 6%, and on the market of mobile phones 11 percent rise year on year was registered.

Distribution of forces in segments of the international, Chinese and local brands in the Russian market of smartphones, data of Counterpoint Technology Market Research for the first quarter 2017.
Distribution of forces in segments of the international, Chinese and local brands in the Russian market of smartphones, data of Counterpoint Technology Market Research for the first quarter 2017.

LTE devices and phablets on which rise for 64% and 50% respectively is recorded were the most dynamic segments of the market of smartphones. Models with support of LTE networks occupied 71% in a total amount of the smartphones which came to Russia, and large-size devices with the screen from 5 inches and more — nearly 52%.

Among other trends in the market of smartphones the author of the report of Minakshi Sharma mentioned growth of the average selling price of devices in Russia, as a result of the extending range of models of average price level.[5]

2016

Counterpoint Research: The first revenue in $1 billion at the Chinese brands

The Chinese smartphone manufacturers considerably enhanced the activity in the Russian market. The data of Counterpoint research company published on April 3, 2017 demonstrate to it.

Specialists counted that in 2016 brands from the People's Republic of China for the first time earned from sales of smartphones in Russia over $1 billion. At Russians such brands from Celestial Empire as ZTE, Lenovo and Fly enjoyed the greatest popularity.

Analysts note that in our country inexpensive devices are demanded. Thanks to strategy to offer smartphones with worthy specifications at the attractive price, the Chinese companies could increase the cumulative market share in Russia almost for 23% in annual terms.

Not bad were on sale last year and model of domestic manufacturers, such as Digma, Tele2, Prestigio, Vertex and DEXP. By Counterpoint estimates, their joint share grew by 118%.

Having considered the market in more detail, specialists found out that the Tele2, Digma and Alcatel brands were in the lead in a segment of devices with the price less than $50. Also it is noted that the Russian producer Digma showed unexpectedly strong growth, having increased deliveries honor by 15 times, generally at the expense of the popular smartphones of initial level with support of networks 2G.

Distribution of shares in a segment of devices worth less than $100 in the Russian market of smartphones, data of Counterpoint for 2016.
Distribution of shares in a segment of devices worth less than $100 in the Russian market of smartphones, data of Counterpoint for 2016.

In category of $50 - $75 analysts awarded a victory of Fly, Micromax and Samsung, and in the following price range ($75 - $100) the most popular were models of Samsung, Micromax and Lenovo.

Distribution of shares of producers in the Russian market, data of Counterpoint for 2016.
Distribution of shares of producers in the Russian market, data of Counterpoint for 2016.

Speaking about the market in general, experts added what all in 2016 in Russia was sold to 33 million smartphones that is 5% more, than in the 2015th. The highest indicators are registered at Samsung, Apple, ZTE, Lenovo and Fly companies. At the same time in a segment of devices $100 to which share nearly 37% of all devices implemented in the country fell are cheaper, the Samsung Galaxy J1 Mini and Tele2 Mini models became best-sellers.[6]

IDC: Russia became the largest market in EMEA

On March 28, 2017 analysts of IDC provided results of a research of the Russian market of smartphones. Its volume was the biggest in EMEA region (Europe, the Middle East, Africa).

According to calculations of IDC, in 2016 to Russia 30.66 million smartphones were delivered that is 15.2% more concerning the 2015th. Growth was measured in money by 16.1%.

OnePlus 3 smartphone
OnePlus 3 smartphone

Experts note that shipments of smartphones to the Russian Federation significantly exceeded pre-crisis indicators of the period of 2013-2014 and were higher, than in Great Britain therefore Russia became the largest market of these devices in EMEA region.

"Considering supply rates of smartphones on the Russian market in 2016, the number of these devices on hands at consumers steadily increases — the senior analyst Natalya Vinogradova "IDC Russia" says. — A real income of Russians does not grow, therefore, also service life of devices increases. It becomes more difficult to producers to supply to the market and to support tens of models. In 2017 growth rates will slow down and in the near future the market can show negative dynamics".

The following companies became leaders of the Russian market of smartphones at the end of 2016:

Deliveries of smartphones with support of LTE in Russia increased almost by 104% in 2016. In a segment of devices worth from 25 to 125 dollars the release of devices reached 60% of a total quantity.

The most popular operating system remained Android which together with iOS actually divided the market. To other platforms, including BlackBerry, Symbian and Windows Phone, was not succeeded to win significant shares of the market.

In a research the growing demand for phones with screens from 5 inches on diagonal above is also noted. The share of less large devices in 2016 decreased by 8.2% in comparison with previous year.

Data of J'son & Partners Consulting

According to estimates of J'son & Partners Consulting, in 2016 the volume of the Russian market of smartphones in kind was 26.4 million devices. In comparison with 2015 the market grew by 4.4%, in comparison with 2014 – for 1%. Thus, one may say, that the market of smartphones gradually begins to be recovered from effects of devaluation of ruble, and users begin to get used to new realities and to adapt to the new prices on devices.

The share of smartphones in the general sales of mobile terminals (total sales of mobile phones and smartphones) in 2016 made about 71% in kind that 5 items higher, than the previous year.

Growth in sales of smartphones continues to have an impact on many adjacent markets including on the market of normal mobile phones. By estimates of J'son & Partners Consulting, the Russian market of mobile phones continued to decrease in 2016 and made 10.8 million devices. Nevertheless push-button telephones still occupy about a third of the market of mobile terminals. They still remain are demanded at visitors, pensioners, children and also as the second tube at users of smartphones.

Together with sales also the average cost of these devices falls in kind. By estimates of J'son & Partners Consulting, in 2016 it decreased by 6% in relation to 2015 and made 1.7 thousand rubles.


Top trends in the Russian market of smartphones

  • Explosive growth of smartphones with support of LTE - In 2016 every second sold smartphone supported technology of the high-speed Internet of LTE. Sales of smartphones with the LTE module grew in 2016 more than twice in comparison with 2015. Main growth drivers of the market are increase in the range of LTE devices, decrease in their average cost and also the grown demand for devices of an average and a bonus price segment.
  • Growth of average retail cost of smartphones - the Average retail cost of smartphones grew in 2016 by 22% in comparison with last year and was 12.1 thousand rubles. It is the highest rate of average retail cost of the smartphone since 2009. Value addition in comparison with last year was affected by the growing demand for devices of a price category "higher than 15 thousand rubles" that was promoted, in turn, by sales increase of the devices purchased on credit.
  • Growth of diagonal of the display of smartphones - the Average diagonal of the display of the smartphone sold in Russia in 2016 was 4.6 inches. Besides, the share of smartphones with the diagonal of 5 and more inches grew from 31% in 2015 to 46% in 2016. Growth in sales of smartphones with the big diagonal of the display influences increase in use of video content, TV and applications.
  • Growth of a share of the Chinese producers is the Trend, arising prior to the economic crisis, received continuation after devaluation of ruble. A number of smartphones of producers, popular at formation of the Russian market, – Sony, HTC, NokiaMicrosoft/– at the end of 2016 totally occupied only 5% of the market of smartphones in kind. Their place is taken by the Chinese companies selling devices at more attractive price. In 2016, by estimates of J'son & Partners Consulting, in Russia the Chinese companies take a half of positions in the top ten of the most sold producers.

Svyaznoy: Phablets for the first time reached a share of 50% in money

At the end of 2016 phablets or smartphones with the "big" display (more than 5 inches) for the first time in the history created 50% of revenue of the retail companies of sale of smartphones against 39% the previous year, reported Svyaznoy network. In pieces the share of phone tablets in January-December made 46% (in 2015 – about 30%).

In total in Russia in 2016 more than 12 million phablets for the amount of nearly 165 billion rubles were sold. Sales of such gadgets in a year grew by 60% both in pieces, and in rubles. Growth of popularity of phone tablets became one of key drivers of the market of smartphones in 2016. In general the segment of smart phones in a year - by estimates of Svyaznoy - increased by 5% in pieces and for 27% in rubles.

Growth of demand of phablets is explained by several factors. "Big" smartphones are convenient for communications (communication in social networks and messengers) and entertainments (viewing and editing a photo and video). Such device the "first" screen for becomes more increasing the number of users, and people prefer to purchase one gadget instead of at least two (the smartphone and the tablet computer). Growth of popularity is promoted also by active penetration of such devices into average and low price segments. Says preserving of an indicator of average cost of the phone tablet on level of 2015 year (about 13,500 rubles) about it while the smartphone price in general for the same period increased by 20%.

Most popular with the Russian buyers in 2016 became smartphones with the diagonal from 5 to 5.5 inches. The share of such devices in pieces in the Russian market of smart phones in 2016 grew from 26% to 39% of all implemented smart phones. Smartphones with diagonal over 5.5 inches in 2016 also became more demanded – Russians purchased 1.7 million gadgets with the biggest display against about 1.1 million the previous year. The share of 5.5-inch smartphones in the market in a year increased, but does not exceed 7% yet - phablets with diagonal higher than 5.5 inches still continue to gain popularity.

With growth of popularity of "big" smartphones also their offer in the Russian retail networks increases. For example, in Svyaznoy of 75% of goods items in assortment of smart phones make devices with diagonal more than 5 inches. In January, 2017 such gadgets as iPhone 7 Plus, LG K10 LTE, LG X Power entered into top ten on sales in Svyaznoy.

IDC: The second quarter

On September 2, 2016 the IDC analytical company published a brief summary of a research of the Russian market of mobile phones. Experts noted stabilization and return of indicators to pre-crisis level.

According to estimates of IDC, in the second quarter 2016 7 million smartphones against 5 million pieces were imported into Russia the previous year.

The Russian market of mobile phones returned to pre-crisis level
The Russian market of mobile phones returned to pre-crisis level
«
The first three quarters 2015 volumes were lower, than in previous periods — the senior analyst "IDC Russia" Natalya Vinogradov says. – At the same time transition to cheaper categories of phones was observed. Since then on the market confidence returned, in the end of the year there was an increase in import volumes. This trend remained also in the first half of 2016.
»

In a research it is also noted that in the second quarter 2016 devices with support of LTE networks for the first time occupied more than a half of the Russian market of smartphones. The growing popularity of such devices is promoted by reduction of prices of them: if in 2014 the average cost of the LTE smartphone in the Russian Federation was at the level of $500, then two years later it decreased up to $189.

Micromax reduced the average retail price of the LTE phones lower than 5 thousand rubles that allowed the company to enter into the three of the largest suppliers of such smartphones based on Android, having been inferior only to Samsung and Lenovo.

2015

TrendForce: Fly outstripped Apple and Lenovo

On January 18, 2016 the TrendForce analytical company published results of a research of the Russian market of smartphones. The share of these devices continues to grow, and among leaders the Fly brand appears.

As it appears from the analytical report, in 2015 sales of smartphones in Russia made 26.15 million units that is 22% more, than the previous year. Their share in all market of mobile phones in a year rose from 50.5% to 60.5%.

«
Local demand for smartphones of average and initial level steadily grows. The Russian consumers select cheaper models of smartphones because national economy is under the influence of sanctions of the USA and the European Union, the analyst of TrendForce Kelly Hsieh reported
»

According to calculations of TrendForce, 67.8% of the smartphones sold in Russia in 2015 cost an average of less than $124 (9800 rubles at the rate of for January 18, 2016). Growth of popularity of inexpensive models led to fast strengthening of business of such vendors as Fly and Explay. Besides, the Chinese producers, like Lenovo, Huawei and TCL, actively develop in the Russian market within several years and work on increase in recognition of the brands in the country.

The Samsung corporation became the largest seller of smartphones in Russia in kind at the end of 2015. Fly which managed to outstrip Lenovo and Apple was at the second place.

Analysts also pay attention to Huawei which focused on marketing promotion in Russia. In 2014-2015 the company opened in the country more than 10 retail stores for the purpose of promoting of the brand. Big plans of Huawei for the Russian market confirm start flagman smartphone Honor 7 and the Honor Band Zero smartwatch in September, 2015, note in TrendForce.[7]

MTS and Euroset: The first drop in sales in the history

On January 13, 2016 MTS and Euroset announced drop in sales, the first in the history of the Russian market of smartphones, in kind. Revenue at the same time grows thanks to increase in prices for devices.

By estimation of Euroset, in 2015 in Russia 25.5 million smartphones were sold that is 8.4% less, than the previous year. This annual recession was the first in the history of the market, the representative of retailer Ulyana Smolskaya told Vedomosti.

The 2015th became the first year of drop in sales of smartphones in Russia in kind
The 2015th became the first year of drop in sales of smartphones in Russia in kind

M.Video, Svyaznoy and MTS confirm drop in sales of smart phones in the Russian Federation. So, according to data of the operator, in 2015 sale of smartphones in the domestic market was reduced by 8% to 26 million pieces.

In money rise is still observed. Euroset states revenue from sales of devices in 2015 in 258 billion rubles (+5% to the 2014th), in MTS — in 260 billion rubles (+6%).

Ulyana Smolskaya connects this growth with increase in average cost of smartphones — from 8.9 thousand rubles in 2014 to 10.1 thousand rubles a year later. Analysts of MTS also explain the growing revenue with "interest in LTE devices". 57% of sales of smartphones (about 150 million rubles) in Russia in 2015 fell to their share. In total 6.7 million LTE smartphones were implemented that exceeds total sales volume for  all previous years.

Smartphones remained the only large segment of the market of portable electronics with the growing revenue. According to Euroset, in 2015 sales of simple mobile phones in Russia dropped by 21%, and digital cameras, tablets and notebooks — for 38%, 31% and 23% respectively.

Retail networks did not begin to do the forecast for 2016. There can unexpectedly be factors capable to lead both to increase, and to sales reduction, the president of Euroset Alexander Malis considers.

According to the representative of Svyaznoy Sergey Tikhonov, consumers will approach more rationally the choice of devices, to use promotion actions of retailers and to buy an insurance for expensive products.[8]

Data of J'son & Partners Consulting

By estimates of J'son & Partners Consulting, total sales of smartphones in Russia in 2015 made 25.3 million devices. And for the first time since 2009 they showed negative dynamics: concerning results of 2014 of sale of smartphones were reduced by 3% in kind.

It is important to note that at a similar difficult macroeconomic situation in 2009 falling of the market of smartphones was more notable – at once on a third in comparison with 2008, and the situation differed from that radically that we observed in 2015. We select several factors thanks to which users did not begin to refuse in large quantities smartphones in crisis: in the market the budget segment of smartphones appeared (it is possible to purchase devices of initial level less than for 2000 rubles). With development of the high-speed Internet smartphones became an integral part of life of people. Besides, smartphones replaced to users a number of alternative devices: navigator, MP3 player, dictophone, budget cameras, alarm clock, small lamp, etc.

Trends in the market of mobile devices in 2015

  • Decrease in a share of sales of the producers focused on a bonus segment. Growth of popularity of new brands. In 2015 the Russian buyers of smartphones less willingly "overpaid for a brand", preferring to buy devices, similar in characteristics, at lower price. A number of the new producers focused on a budget segment in 2015 could occupy more or less significant share in the market of smartphones. The share of traditional smartphone manufacturers fell lower than 50%.
  • Growth of average retail cost of the smartphone. The downward tendency of average retail cost of the smartphone observed in recent years, in connection with growth of the offer of devices of budget level, was interrupted in 2015. By estimates of J'son & Partners Consulting, the average retail cost of the smartphone increased in 2015 by 9% in comparison with 2014. At the same time, despite significant increase in the prices of consumer electronics in Russia in the last one and a half years if to speak about smartphones, then the average retail cost of these devices grew not so significantly. In steel market budget devices are popular.
  • Growth of functionality of smartphones. In 2015 on the general sales of smartphones the share of devices with support of LTE, NFC and an opportunity to connect two and more SIM cards increased.
  • In 2015 sales of phablets (smartphones with the diagonal of 5 and more inches) for the first time exceeded sales of tablet PCs. Growth of popularity of related services at sale of mobile devices: insurance, setup and installation of applications on smartphones, etc.

Forecasts

At the beginning of 2016 a number of smartphone manufacturers announced new increase in prices for products in Russia for 15–20%. According to J’son & Partners Consulting, in connection with continuation of growth of cost of devices and decrease in purchasing power of a trend of 2015, namely preserving of high demand on budget smartphones, will take place and in 2016. The size of the market of smartphones in 2016 will strongly depend on further macroeconomic country situation and ruble exchange rate.

Despite it, according to forecasts of J'son & Partners Consulting, by 2020 the market of smartphones will grow more than by 70% in comparison with results of 2015, it will be promoted by the following factors:

  • according to J’son & Partners Consulting, by 2020 smartphones almost completely will drive normal mobile phones out of the market;
  • smartphones for many people become necessity, and even at difficult economic country situation users do not refuse purchase of smartphones. At the same time the intermediate-term cycle of "smartphone life" makes 2–3 years;
  • approach of the total market of mobile phones and smartphones to a stage of saturation aggravates competitive struggle between retailers. The active policy of retailers on involvement of buyers can make smartphones more available (for example, due to subsidizing of devices by cellular operators).

2014

IDC: Piece sales grew by 46%

On February 16, 2015 the Bloomberg agency published results of a research of the Russian market of smartphones analysts of IDC. Sales of devices in 2014 increased almost half in many respects thanks to high New Year's Eve demand, however the further growth of the market is questionable.[9]

According to assessment of experts of IDC, in 2014 the volume of the Russian market of smartphones reached 27.4 million in pieces and $6.3 billion in money. The previous year these indicators were 18.8 million units and $5.4 billion respectively.

Sales of smartphones in Russia showed phenomenal growth

Samsung which in 2014 produced about 6 million devices that on 2.3 million pieces it is less, than for previous year remained the largest supplier of smart phones in domestic retail. For the same period of sale of iPhone, on the contrary, about 3.2 million units doubled, and total proceeds from their implementation reached $2.1 billion against $1.5 billion from sales of gadgets of Samsung.

Thus, Apple became the most profitable smartphone manufacturer in the Russian market. In October-December, 2014 when in Russia excessive demand for electronics in the conditions of devaluation of ruble took place, retailers sold iPhone for the amount of $827 million that corresponds to 46% of all volume of the Russian market of smartphones. For that three-months period the share of Samsung in revenue made 18%.

As notes the edition, against the background of growth of dollar exchange rate of Apple increased the cost of the phones almost by 70% at the end of 2014 whereas rise in price of products of Samsung was less considerable.

"The prices of iPhone left comfortable level. Consumers do not understand how phone can be more expensive than the used car" — the president of Euroset Alexander Malis noted.

In the conditions of a difficult economic situation in Russia local market of smartphones can not grow in 2015 concerning the 2014th, the analyst of IDC Simon Baker says. According to him, sales of iPhone after a boom in 2014 will decline, and against the background of decrease in consumer spendings inexpensive models based on Android will be in the greatest demand.

Leading manufacturers of smartphones in the Russian market are also Lenovo, Microsoft, Sony and LG which in 2014 implemented 2,2, 1,8, 1,6 and 1.1 million tubes respectively. Especially It should be noted breakthrough of Lenovo: at the Chinese company of sale jumped up almost by 4 times in kind and by 2.5 times — in monetary.

Svyaznoy: Apple - for the first time the market leader in terms of money

Apple at the end of 2014 for the first time became the leader of the Russian market of smartphones in terms of money. The company occupied 30% of the market on this indicator with turnover over 67 billion rubles. In 2013 the share of vendor made 21%, Svyaznoy with reference to preliminary data of GfK[10] reported [10].

In the IV quarter 2014 Apple reached record sales in Russia. During this period the share of vendor in terms of money reached 36%. Before the share of the company reached the maximum value in the I quarter 2014 — 28%.

As noted in Svyaznoy, record interest in new products — iPhones 6 and 6 Plus helped to achieve similar result of Apple — caused as the presentation of two models, essentially different in terms of functionality, and early start of sales of rather world premiere (devices were available for sale in September). In the IV quarter 2014 the Russian buyers started buying up electronics because of sharp depreciation of the ruble.

Besides, thanks to preserving on sale of iPhone 4s and to change of price policy on iPhone 5s and 5s after the presentation of new products the brand in the IV quarter 2014 was provided in all price segments over 10 thousand rub that considerably expanded audience of buyers, added analytics.

In quantitative expression of Apple at the end of 2014 took the second place in the Russian market of smartphones. The company implemented in a year 2.7 million devices and about 1 million from them — in the last three months of year.

First place in quantitative expression was won by Samsung company, but on money it conceded to Apple (the second place).

Outstanding results of sales of Apple became one of key drivers of the market of smartphones in Russia. While B-brands affected market size in quantitative expression, Apple — on a monetary indicator. Growth of the Russian market of smartphones in 2014 in terms of money was 25% in comparison with 2013. Without Apple growth would be only 15%.

J’son & Partners Consulting: Sales growth in pieces of +47%

The volume of the Russian market of mobile terminals (total sales of smartphones and mobile phones) at the end of 2014 became the highest for all history – 43 million devices. At the same time about 61% of total sales – 26 million devices were the share of smartphones. In total in 2014 in Russia 1.5 times more smartphones, than in 2013 were sold.

The share of the Russian market of smartphones in total world sales made 2% at the end of 2014.

At the end of 2014 growth rates of the Russian market of smartphones in kind (+47%) significantly outstripped average world (+26%).

Growth in sales of smartphones in Russia was promoted, first of all, by the growing popularity of mobile Internet access and decrease in average cost of devices. In terms of money the Russian market of smartphones in a year grew not so strongly – by 20%, and totally at the end of 2014 made 216 billion ruble.

In 2014 the average cost of the smartphone fell by 19% and was 8.3 thousand ruble. The average price of the smartphone falls due to growth of a budget segment. In 2014 approximately every fifth sold smartphone cost less i3 of one thousand.

Except growth of a budget segment, it is worth paying attention to decrease in a share of "expensive" smartphones. The share of a price segment "More than 15 Thousand Rubles" decreased in a year by 6 items, and at the end of 2014 made 13%.

By estimates of J'son & Partners Consulting, Android share in 2014 made more than 86% of number of all smartphones sold in Russia. According to J’son & Partners Consulting, in the short term positions of the operating system from Google look firm – Windows Phone could not make high-quality breakthrough forward yet, and iOS perspectives in the Russian market, in connection with significant price increase, it is difficult to estimate.

4.3 inches – the average diagonal of the display of the smartphone sold in 2014 in Russia. In the market of smartphones the tendency to gradual increase in diagonal of the display and transformation of smartphones into hybrid devices which can be used as the tablet proceeds. Significantly the share of smartphones with the diagonal of screen 5 and more inches grows: if in 2013 the share of such devices made only 7% of total sales, then in 2014 it reached 18%.

By estimates of J'son & Partners Consulting, the total share of sales of smartphones with two and more SIM cards in 2014 made 60%. Enjoying the growing popularity of dual SIM smartphones, leading manufacturers began to produce not only budget models with two SIM cards, but also the flagman devices in two versions – with support of this technology and without.

The share of smartphones with support of LTE grows not so promptly. As the main reason for that serves the essential difference in the price. By estimates of J'son & Partners Consulting, the average retail price of the LTE smartphone sold in 2014 was about 22 thousand rubles, and the similar indicator on the total market of smartphones was 8.3 thousand rubles.

Macroeconomic country situation and devaluation of ruble, certainly, will affect the Russian market of smartphones, consider in J&P. Leading manufacturers already now significantly increased the cost of devices in rubles. At the same time the good selection of smartphones of a "budget" segment which on the technical characteristics not strongly are inferior to more expensive devices is presented at the market. According to J’son & Partners Consulting, such devices can replace quite successfully for buyers more expensive analogs, respectively, we do not expect any sales reduction of smartphones in kind in Russia in 2015.

According to J’son & Partners Consulting, in 2015 it is possible to expect: sales reductions of the premium smartphones - a segment; growth of the range and popularity of inexpensive smartphones; changes of structure of the market of smartphones on producers, further gain of positions of the Chinese smartphone manufacturers; gains of presence of cellular operators in the market of sales of smartphones.  

Despite a difficult economic situation, people will not refuse purchase of smartphones, but will try to save on it. According to forecasts of J'son & Partners Consulting, the total sales volume of smartphones in Russia by 2019 will exceed 42.1 million devices, the share of smartphones in the general sales of mobile terminals will make 93%.

Svyaznoy: In Russia it is sold to 41 million mobile phones, height of +5%

For 2014 in Russia over 41 million mobile phones for the amount about 254 billion rubles were sold that above indicators of 2013 for 5% in pieces and for 18% in money. Let's remind that at the end of 2013 the market of mobile phones did not grow to 2012 in kind. As stated in the report of the Svyaznoy group, positive dynamics of the market of mobile phones was provided in general by two-digit growth in sales of smartphones. In total in 2014 26 million "smart" devices for the amount about 227 billion rubles were implemented. It is 39% more, than last year, in pieces and on a quarter in terms of money. Thus, the two-digit growth rate of sales in 2014 remained and not only in pieces, but also in money.

Increase in the market in pieces was provided by the active growth of V-brands due to substitution of feature phones and strengthening of positions in a segment from 5 to 15 thousand rubles. At the end of year the share of such brands in kind reached 45% against 31% the previous year. In money of sale of V-brands exceeded the one fifth part of the market, having made 22%. Due to active sales in budget price segments the average cost of the smartphone fell again - it was 8,900 rubles that is 7% less, than in 2013.

Dynamics of sales in money is explained by growth in averages and high price categories where the special role in the market was played by a brand of Apple. The popularity of its products considerably grew in 2014. Let's remind that in 2014 the brand was provided in all price segments over 10 thousand rubles that expanded target audience of buyers, and interest in new products – iPhones 6 and 6 Plus – exceeded demand of 2013 at least by 2-3 times.

eMarketer: 2014-2018: Russia will outstrip Japan on number of users of smartphones (forecast)

On December 11, 2014 the EMarketer research company published the forecast for the world market of smartphones where data on Russia were also provided.

According to assessment of analysts, in 2014 the number of the users of smartphones living in Russia will reach 49 million against 35.8 million the previous year. On this indicator the Russian market will take the fifth place, having conceded to China (519.7 million users), the USA (165.3 million), India (123.3 million) and Japan (50.8 million).

file: 182905.gif

In the 2015th Russia will take the 4th place in the world on number of users of smartphones

In 2015 Russia will be able to climb up the fourth position, having outstripped Japan — 58.2 against 57.4 million predicted active smartphones respectively. However in 2016 the Russian market of smart phones will fall by the fifth line in the overall ranking again, but will concede it not to the Land of the rising sun, and Indonesia.

Demand for mobile devices grows in this state at prompt rates: if in 2013 there were 27.4 million owners of smartphones, then in the 2016th this quantity will increase up to 69.4 million. In Russia this indicator will be 65.1 million and will increase to 71.9 million a year later. In 2018 the audience of owners of smartphones in the Russian Federation will reach 76.4 million people whereas there are around the world 2.56 billion users of these tubes, the staff of EMarketer predicts.

In 2018 more than a half of mobile phones which people use worldwide will fall to the share of smartphones. In more detail in global market it is possible to learn about a situation in the section "Smartphones (world market)".

2013

IDC

Forecast of sales growth for 15%

According to forecasts of IDC (February, 2013), in 2013 the Russian market of smartphones will grow approximately by 15%.

Believe in IDC that the Russian market of smartphones is still far from saturation: the trend of growth will remain two-three more years, but also by 2015 smartphones will not occupy 50% in a total amount of the market of phones.

Sales of smartphones in the second quarter break a record

The share of smartphones in the Russian market of mobile phones in the second quarter reached 2013 39%. It is the highest rate ever recorded by analysts of IDC company in Russia.

The total amount of the market of mobile phones according to the results of the second quarter exceeded 9.7 million pieces. At the same time the size of the market of smartphones was about 2.4 million.

"On average in Russia 10 sold mobile phones are the share of everyone four smartphones, – the analyst of IDC Simon Baker notes. – The Russian market of smartphones gradually catches up with more developed countries whose markets are already close to saturation".

Samsung controls nearly a half of the market of mobile phones, the share of Nokia Corporation is reduced and in the second quarter made less than 25%.

In the market of smartphones the share of Samsung decreased slightly, in comparison with the first quarter, but still exceeds a mark of 50%. Deliveries of Apple, the closest competitor of Samsung, are six times less than the leader's indicators, and is only insignificant above indicators of Sony, Nokia Corporation and HTC.

In the second quarter 2013 phones with Android OS occupy nearly 75% of the market. The second place for models under control of Bada - sales of these models went down. Phones with Windows Phone OS took the third place from shares in 8.6%, slightly advancing iOS (8.3%). Sales of the Nokia Corporation phones with Symbian OS are almost stopped.

GfK: 9 months 2013: rapid growth of sales of the Russian smartphones

For the first nine months 2013 in comparison with the same period of 2012 of sale of smartphones of a number of the Russian local brands (B-brands) in kind grew by hundreds of percent. It follows from the report of GfK from which excerpts were at disposal of Vedomosti. The authenticity of the report was confirmed by the staff of three companies — her clients.

Follows from the report that in January — September, 2013 in comparison with the first nine months 2012 is the strongest — almost by 24 times — sales of the Explay smartphones grew. On the second place on growth rates of sales there were smartphones which under the brand are implemented by MegaFon — for a year of their sale increased almost by 18 times. Took the third place Highscreen, a trademark of the distributor of portable electronics "Vobis Computer": he showed almost 5-fold sales growth (in the report GfK for the first time appropriated it a separate position).

For the first nine months 2013 of Explay, Highscreen and MegaFon together occupied a little more than 6% of the Russian market of smartphones (for comparison: a market share of HTC — 6.8%). In January — September, 2012 less than 0.5% of the market together were the share of MegaFon and Explay, about another 0.5% were the share of Highscreen.

Image:Продажи смартфонов в России 9 мес 2013.png

Assessment of GfK is too conservative: in January — September, 2013 in Russia not 147,000, but about 350,000 Highscreen smartphones were sold. Thus, the real brand share — 2.5%, approves a source, close to the company.

According to Svyaznoy, sales of Explay grew almost by 22 times (about 300,000 smartphones are sold). Such growth was partly shown against the background of low base (sales of the Explay smartphones began only in 2012), but its growth rates exceed indicators of the competitors entering the market approximately during the same period and in the same conditions, the representative of Svyaznoy Maria Zaikina says.

According to GfK, more than by 4 times (by 336%) sales of the branded devices and other Russian mobile operator — MTS grew. The representative of MTS Dmitry Solodovnikov explains it, in particular, with good sales of MTS smartphone 970: according to him, in August and September, 2013 the device won first place on sales of smartphones in Russia. Data of GfK confirm it.

At the same time for the first nine months 2013 the first three of suppliers of smartphones on the Russian market did not undergo changes — Samsung, Apple and Nokia Corporation together occupy 52.6% of the market. However the previous year their total share reached 70%.

High growth rates of sales of smartphones of B-brands the representative of M.Video Anton Panteleev explains them with activity in a segment of budget smartphones. These brands dominate in a segment of smartphones worth 3000-5000 rub and force out classical mobile phones, he reminds. Respectively, the share of A-brands of smartphones which in a budget segment are still less active decreases, Panteleev notes. For the buyers who are guided by a price category it is lower than 10,000 rub, the value of a brand is less important, than a ratio "the price — quality".

The representative of MegaFon Yulia Dorokhina also notes good price relation and qualities in smartphones of B-brands. According to her, in retail network of the operator smartphones under a brand MegaFon take the 3rd place on sales after Samsung and Nokia. The share of the MegaFon smartphones in its retail network of salons for the first nine months 2013 grew by 4 times in comparison with the same period of 2012, Dorokhina says.

Growth of brands of the second echelon is reflected in the report of GfK obviously noticeable even to the ordinary consumer, the CEO of Explay Eduard Vashchenko says. All first top three in growth rates — the Russian brands, he notes. In absolute measures they show not the most impressive results, however if the B-brand share in a year increased by 1500%, and the share of one of the largest A-brands increased less than by 40% or even fell, it speaks about much, Vashchenko considers. According to him, producers of the second echelon in extremely short term managed to shake a position of A-brands and to force to look back at themselves.

"Therefore even the companies of level Samsung are forced to adjust the strategy of work on Russian and other emerging markets as in the short-term, and long term" — Vashchenko emphasizes.

The size of the market of smartphones grows, but the number of participants at the same time noticeably did not grow up, the commercial director Vobis of computer Mikhail Chernyshov noted. Few years ago the user was forced is almost uncontested to buy smartphones of world leading manufacturers and, thus, to pay the large expenditure for advertizing and marketing put in the price, he says. Now B-brands give freedom of choice when the consumer is free to select that it is more important for him: purchase of the device of the known brand or acquisition of model with comparable characteristics at much more modest price, Chernyshov argues.

Also he recognizes that product quality of B-brands considerably grew lately: in 2011-2012 the number of breakdowns of such devices which improved on a guarantee was several times more, than at A-brands. And now both at A-, and at B-brands the level of warranty failures seldom exceeds 5-7%, Chernyshov claims.

According to Chernyshov's forecast, in 2014 the share of Samsung, Nokia and Apple can be also reduced, the number of market participants will decrease, and the competition will only amplify. The most part of V-brands will go to the lowermost price segment, only the few local producers — those who will be able not just to offer the ultralow price will be able to be selected from weight, but to create full-fledged own mobile number of devices with the functional and design features distinguishing their smartphones from products of competitors, the top manager of Vobis predicts.

Data in 47 weeks 2013

Image:Доли поставщиков на российском рынке смартфонов 2013.jpg

Shares of suppliers in the Russian market of smartphones 2013 according to the results of the first 47 weeks of year

2012

IDC: Android governs the market. Samsung overtakes Apple

The share of smartphones in the Russian market of phones for 2012 grew from 25% to 33%, the program manager of the researches IDC on the market of mobile phones in the countries of Central and Eastern Europe, the Middle East and Africa Simon Baker said at a press conference in Barcelona within the Mobile World Congress exhibition.

In 2012 in Russia top three of operating systems changed. On the first place still of Android, from this OS 69.6% of all smartphones were in the fourth quarter sold. The second position is taken by Linux (Bada) from 12.3%. Pressed Windows Phone from the third position of IOS (7%). iPhone went down on the fourth place from 6.3%[11].

J'son & Partners Consulting: Explosion of Internet access from smartphones

In 2012 the number of the subscribers of cellular communication using mobile Internet access from smartphones grew in Russia by 88%, up to 22.5 million, said in the research J'son & Partners Consulting. The average monthly traffic falling on the subscriber of the mobile Internet using the smartphone made 303 MB.

It agrees to the research J&P published in the middle of December, 2012, by 2015 the park of smartphones will increase by 2.3 times and will make 63 million devices, and the number of tablets — 12 million devices.

2011

IDC Data

According to IDC the supply rate of smartphones to Russia for 2011 was 8.7 million pieces or 21.2% of all market of mobile phones, significantly having exceeded similar indicators of previous year. Of top four share – Nokia Corporation, Samsung, Apple and NTS - were the share more than 90% of all deliveries.

In the Russian market of smartphones consolidation of brands amplifies. The main competitive struggle is started between Nokia and Samsung. Provision of Apple and HTC while other suppliers have no noticeable impact on an overall picture is steady.

The prices of smartphones fell less evenly, than for normal mobile phones. It was promoted by such factors as emergence of iPhone in Russia and release of less expensive smartphones by Nokia company in the middle of 2010.

  • The volume of a segment of smartphones in quantitative expression according to the results of all 2011 reached about 7.7 million devices, having exceeded the volume of 2010 more than twice. In terms of money the volume of a segment grew by 80% and reached 83.3 billion rubles, according to MTS.

In general for 2011 the share of smartphones in quantitative expression made 19%, having exceeded value of 2010 more than twice.

Image:Продажи смартфонов в России 2004-2011.JPG

Despite decrease in market price of smartphones (in the IV quarter it was 8% up to 10733 rub), this segment showed sure growth rates as in quantitative, and monetary value for all 2011 and all 2010 with which comparison is carried out. So, in the last quarter 2011 53.3% of all revenue in comparison with 23.3% at the beginning of 2010 were the share of this segment.

Leadership in a segment of smartphones in 2011 in Russia was saved by Nokia Corporation, however its share decreased by a third - from 64% to 43.6%. At the same time the share of Samsung almost trebled - from 10.1% to 28.4% (the second place). On the third place - HTC which though increased a share, but it is insignificant - from 7% to 8.9%. The fourth place was taken by Apple from shares of 6.1%, the fifth - Sony Ericsson from shares of 6%. It should be noted that in 2011 Apple and Sony Ericsson companies traded places - year before the fourth place belonged to the shvedo-Japanese alliance.

  • In the II quarter 2011 Nokia Corporation share in the Russian market of smartphones continued to fall. If to look quarterly, since IV quarter 2010, the loudspeaker such: 57, 52, 41% are in money and 71, 65, 52% — in pieces[12]. Data of Svyaznoy are like that. At Euroset similar: 41% against 47% in monetary and 62% against 63% in piece expression (the I quarter 2011 by I quarter 2010). MTS agrees too: the share of Nokia decreases, in kind in the first half of the year it made 55%, the representative of the operator Valery Kuzmenko says.

What loses Nokia tidies up Samsung. According to Svyaznoy, the share of Samsung for the first half of the year grew from 8% (the IV quarter 2010) to 23% (the II quarter 2011) in terms of money. Nokia yields a position first of all of Samsung, Kuzmenko says: the Korean producer produces bigger number of new models and stakes on more modern Android operating system while Nokia uses Symbian.

At the same time Nokia remains the leader and in the Russian market of smartphones, and in the market of phones in general. On the last it in kind even increases the share. According to Svyaznoy, in the first half of the year 2011 Nokia had 41% of the telephone market against 38% for the same period of 2010 of MTS estimate a share of Nokia at 42%.

Kuzmenko and the representative of Svyaznoy Elena Nogotkova explain it with good sales of budget models of Nokia. Nokia pays for preserving of positions in reduction of price of devices: in the first half of the year 2011 they fell in price by 24% (in comparison with the end of the second half of the year of last year), Nogotkova notes.

According to Euroset, the share of Nokia in terms of money in January — May, 2011 was such (monthly): 43, 47, 44, 43, 41% — if do not fall, then definitely do not grow.

Problem of Nokia — in deficit of sign new products and also in short in comparison, for example, with Samsung a line of devices in all price categories, the CEO of IAA Telecomdaily Denis Kuskov considers. The situation in the Russian market of smartphones for Nokia can be unrolled in 2012 when phones on Microsoft Windows the Mobile 7 platform, new to Nokia, go on sale, he assumes.

  • According to Svyaznoy, in the I quarter 2011 the Russian sales of smartphones grew in comparison with the same period of 2010 in piece expression by 138%, and in monetary – for 95%. 19% of all sold phones were the share of smartphones.

The overview of the market of smartphones in Russia for the first half of the year 2011 from Svyaznoy Group

Huawei starts sales of the smartphones in Russia

  • On June 1, 2011 it became known that Huawei starts in the Russian retail phones under the[12]. Earlier she sold tubes only through operators and under their brands here.

Still only operators — MTS, VimpelCom, MegaFon, Sky Link were partners of Huawei in Russia. Huawei decided to sell phones under the brand, inspired by rapid growth of sales of smartphones, the marketing director of its Russian office Alexey Gromakov says. Negotiations go, in particular, with Euroset and Svyaznoy.

The president of Euroset Alexander Malis and the representative of Svyaznoy Elena Nogotkova confirmed it, having added that there are no agreements yet. Nevertheless Huawei expects to enter until the end of 2011 the first five of suppliers of smartphones to Russia, and in three years — to take the 3rd place, Gromakov says, referring to successful sales of "operator" tubes. He does not give number. The third place on sales of the Huawei smartphones shines hardly, Malis doubts.

In 2010 Huawei imported into Russia about 80,000 smartphones for operators, and this year will sell about 100,000 through them and as much again — through independent retail, the leading analyst of Mobile Research Group Eldar Murtazin estimates.

MegaFon offers a number of devices of Huawei under the brand: smartphones running Android, budget 3G-phones, routers, a photoframework, the representative of the operator Karen Asoyan says. For the last year he sold more than 100,000 such devices. The press secretary of MTS Valeria Kuzmenko called only a share of the Huawei phones in a monobranded line of this operator — 20%.

2009

Data of SmartMarketing

Smartphones, communicators, PDA and Internet tablets - For designation of three last categories of devices (communicators, the CPC and Internet tablets) of analytics of SmartMarketing use an abbreviation of WID (Wireless Internet Device is the wireless Internet device). In a segment of WID all devices having the large and/or touch screen and also the alphabetic keyboard entered a smartphones segment devices with not the touch screen and the number pad are switched on (mainly it devices based on the Symbian platform, but also and some models with Linux). Experts explain such segmentation with essential differences in consumer behavior when choosing and also technology features of goods.

In the 1st half of 2009 in Russia 676 thousand smartphones, communicators, the CPC and Internet tablets were sold, SmartMarketing reports. Made of the specified 676 thousand devices of all types of 165 thousand units (24.4%) WID and 511 thousand units (75.6%) - smartphones.

In numerical expression in comparison with results of the 1st half-year 2008 the market showed falling approximately by 2.5 times. Much more the segment of WID where there is a large number of the players adhering to various technical and marketing policy suffered. The sector of smartphones (traditionally more inert) was damaged less, generally because of the shift of new products in lower price segment. Quarter dynamics of market development remained high. In comparison with sales volumes of the 1st quarter, sales in the 2nd quarter 2009 inspire careful optimism (120.4 thousand devices in the 1st quarter and 442.4 thousand - in the 2nd). However experts do not decide to speak about market recovery yet.

"The structure of the market after crisis changed very noticeably. Actually, the market was discarded in development for 2-3 years ago, - Svetlana Zavyalova, the marketing manager of SmartMarketing comments. - Sales in the 1st quarter at some suppliers decreased on nearly order, sales of a New Year's season actually failed that led to strong overstocking of warehouses: both at distributors, and in retail networks. Affected both jumps of dollar exchange rate, and sharp reduction of purchasing power, and "repartition" of cellular retail, and the general pessimistic moods both players of the market, and ordinary buyers".

iPhone (share of 27.0%) became the market leader of WID according to the results of the 1st half-year 2009, on the second and third places Samsung and HTC with shares of 23.1% and 14.1% were located (against 24.1% the previous year) respectively, the fourth and fifth places were taken by Nokia (8.3%) and Gigabyte (6.5%). Rover PC on the sixth place (4.3%), Asustek – on the seventh (3.4%). Further Mio (3.2%), Acer/e-TEN (3.11%) and Sony Ericsson (1.8%) follow. In view of leadership of iPhone, it is necessary to remember that the most part of sales of iPhone in the 1st half-year is caused by actions of the operators and retail networks who were actively trying to sell out warehouse stocks of iPhone 3G. The former unconditional market leader – HTC – during the whole 2008 displaced the product line in a bonus segment that affected its results of sales during the crisis period.

The high share of Samsung is caused both by effective marketing activity of vendor, and the debugged sales channel. From indicative trends it should be noted sharp reduction of the market share of Acer caused along with crisis, reorganization after purchase last year of E-Ten – the company cannot still recover from effects of the transaction which caused cardinal change of all aspects of business. Unimportant results were also shown by Asustek (in 2008 its share made 11.3%). This decrease can be explained with some secondariness of WID as commodity group in assortment of vendor. At last, it is necessary to point to the significant improvement of positions of Gigabyte connected with flexible change of price policy of a brand, accurate positioning of devices and also with considerable gain of work of a distribution channel.

In general dynamics of the market of WID and smartphones is positive, experts conclude. Sales volumes of devices gradually grow. From the trends defining market development in the short term it should be noted, first of all, emergence in Russia of the first devices on the Google Android platform. According to preliminary estimates of analysts of SmartMarketing, the share of devices based on this OS in the 3rd quarter 2009 (HTC Hero and Highscreen PP5420 model) will make about 1%. By the end of the year this digit can reach 4-6% of the total amount of the market.

The share of the Windows platform of Mobile can increase in connection with the announcement of Windows Mobile 6.5 and new models of devices based on this OS and also mass reduction of prices of stock balance of models of the previous generation. Symbian share in a segment of WID will test a negative trend, in connection with change of consumer preferences and exasperation of the competition from the party of more powerful and functionally saturated WID solutions on other platforms. Growth rates of a market share of iPhone will also be insignificant. In addition to disappearance of a factor of primary demand for a brand, it is also connected with noticeable turning of operator activity on the first iPhone 3G model and also with a delay of emergence of the iPhone 3G S model in the Russian market.

Шаблон:Subject Computers

Notes