Cell Phones Market of Russia

Smartphones

Main article: Smartphones (Russian market)

Unified IMEI base in Russia

Main article: Unified IMEI base in Russia

2022: In Russia, push-button phones of domestic brands bypassed Chinese in sales

In 2022, 2.95 million push-button mobile phones were sold in Russia against 2.8 million a year earlier. Devices from domestic manufacturers accounted for about 50% of supplies, while in 2021 the share was measured at 42%. This is evidenced by data from analysts at Marvel Distribution.

According to them, Russian brands were ahead of Chinese competitors in sales of push-button mobile phones in the Russian Federation. This is confirmed by the head of the analytical center GS Group Alexander Surkov, according to whom in 2022 the share of the former was 60% in money and 71% in pieces against 58% and 64% in 2021, respectively. He noted that in 2022 new Russian brands appeared on sale, for example Tokky from LLC "" Smart ecosystem(included in the perimeter Rostec""). Domestic brands compete Itel Nokia Philips with Chinese conglomerates. But new foreign brands of push-button phones do not enter the Russian market due to low margins, explains Surkov.

The top 5 sold domestic push-button mobile phones include the teXet and F + brands. The main reason for the increase in the demand of Russians for push-button phones in 2022 was the beginning of hostilities in Ukraine and partial mobilization in the country, explained Mikhail Burmistrov, head of Infoline Analytics. Telecom Daily CEO Denis Kuskov agreed with him, noting that when choosing a mobile phone, users preferred not the most advanced models, but one of the cheapest, so the main share of sales fell on Russian brands.

Most likely, the demand for push-button phones in Russia will remain at a fairly high level, and the share of Western manufacturers in the market will continue to decline, Burmistrov said.

In stores M of Video El Dorado"," as reported in the group, by the end of 2022, more than 10 Russian cell phone brands provided 40% of the total volume of mobile phones sold.^[1]

2021

Increase in phone imports by 4%, to 45.2 million units

In 2021, 45.2 million mobile phones were imported into Russia, which is 4% more than a year earlier. In money, the volume of imports increased much more - by 32%, to 832 billion rubles. GS Group analysts announced this on February 9, 2022.

According to experts, the Russian telephone market continues to change towards advanced smartphones, and push-button phones are a thing of the past. In 2017, smartphones accounted for 65% of the market (30.3 million units), and in 2021 their share increased to 78% (35.2 million units). At the same time, the volume of push-button mobile phones fell from 16.7 million units in 2017 to 10 million units in 2021.

Imports of mobile phones to Russia in 2021 increased by 4%

In the lower segment (smartphones up to 10,000 rubles), deliveries to the Russian Federation in 2021 amounted to 11.3 million units, which corresponds to 32% of the market against 52% in 2017. The reason for the decline is the restructuring of the leaders: Huawei, Honor and Samsung reduced shipments by 5.3 million units, Xiaomi and Realme, on the contrary, increased shipments by 1.8 million units. In total, in 2021, the lower segment lost 3.5 million pieces of leaders' smartphones. Other brands took advantage of this, which in 2021 increased deliveries by 1.2 million units, mainly ZTE. The upper segment (the most expensive devices) in 2021 occupied 19% of the market (6.7 million units in 2021, an increase of 40%).

The total share of the four leaders of the Russian smartphone market - Samsung, Xiaomi, Apple and Realme - in 2021 amounted to 81.9% (28.8 million units), along with Huawei and Honor - 84.9% (29.9 million units). Other brands accounted for 15.1% of deliveries, of which 10.7% in the lower segment (3.8 million units) and 4.4% in the middle and upper segments (1.6 million units).

Imports of iPhones to Russia in 2021 amounted to 5 million units (an increase of 25%). This is the maximum volume that Apple has ever brought to Russia in a year. Thus, the total fleet of active iPhones in Russia exceeded 18 million units.

Purchased 3 million push-button phones worth 4.5 billion rubles in the first half of the year

M.Video-Eldorado Group on July 23, 2021 announced the positive dynamics of push-button phones in the Russian market for the first time since 2011. According to the results of the first half of 2021, Russians purchased more than 3 million devices for 4.5 billion rubles, which is 7% higher than in 2020 in units and about 20% in money. In M.Video-Eldorado, over the same period, demand increased by 55% in quantitative terms and 60% in monetary terms.

Mobile phones have given way to more functional smartphones in the past decade. Push-button devices have become niche devices, which at the same time have their own target audience and a number of advantages: autonomy and long service life, low cost. According to M.Video-Eldorado, such devices for the six months of 2021 showed growth relative to sales of 2020 for the first time in 10 years.

From January to June 2021, the market volume increased year-on-year by 7% in pieces and about 20% in money. In the second quarter of 2021 alone, growth amounted to about 26% in units and 35% in money, reaching 1.6 million units and more than 2.3 billion rubles. M.Video-Eldorado showed dynamics that outperformed the market several times: in six months, demand added 55% in units and 60% in money, in May-June sales increased 2.3 times both in quantitative and monetary terms.

According to the results of the first half of the year, the average cost of a mobile phone on the Russian market was about 1.5 thousand rubles. The five most popular manufacturers included Nokia, Philips, teXet, Itel and BQ-mobille.

Traditionally, push-button phones are in demand as an additional device for work, the first device for children or a means of communication for the elderly as a mobile alternative to a "home" phone. New drivers have also appeared in the pandemic. "Cell phones" replace landline work phones with those who work remotely. The impact also comes from the increased number of service employees who need a low-cost device to communicate. In addition to digital ascetics, mobile devices without an operating system are also of interest to users who, on vacation or on a trip, do not want to risk the integrity of their smartphone and instead temporarily purchase a push-button phone. said Nikita Tikhvinsky, Director of Digital Technology at M.Video-Eldorado Group.

2019: IMEI Identification System Testing

At the end of November 2019, it became known about the testing in Russia of the identification system by the IMEI number. It will allow you to fight gray imports and fraud.

It is assumed that only phones with allowed IMEI numbers from the central database can be registered in the operator network. If the phone does not have such a number or if it matches a number that has already been assigned to another device, then such a phone cannot be registered on the network, and it cannot be called.

It became known about the testing in Russia of the identification system by the IMEI number

As reported TASS Information Agency of Russia with reference to, by the Rossvyaz end of November 2019, "," "" and BeelineMegaphone Tele2 together with the department began to prepare for the introduction of identification by smartphones IMEI subscriber device numbers. Operators confirmed the preparations.

The Central Research Institute of Communications (TsNIIS), which manages the central IMEI database, will test identification by IMEI. Tests are supposed to be carried out differentiated for each of the telecom operators, told in Rossvyaz.

Tele2 reported that the company together with TsNIIS experienced the interaction of an EIR solution (operator register with IMEI numbers) and a central database for the exchange of device lists, the test results were recognized as successful. We are talking about testing a technology that automatically screens out IMEIs on "blacklists" (numbers that are denied access to the network), and registers those on "whitelists." In this case, the register of numbers in the operator's network itself is synchronized every two hours with the central IMEI database, which maintains the relevance of the data.

MegaFon told TASS that by the end of November 2019, the concept of the system is being discussed, in particular, "options for exchanging IMEI databases between operators are being tested."^[2]

2018: Russia may introduce fines for IMEI forgery

The Expert Council under the government proposed amendments to the Code of Administrative Offenses (CAO), providing for the introduction of punishment for counterfeiting IMEI (International Mobile Equipment Identity) - the international identifier of mobile equipment. The amendments were approved by the interim commission of the Federation Council for the Development of the Information Society, Vedomosti writes in December.

For IMEI forgery, the authors of the initiative propose to establish fines in the amount of 3-4 thousand rubles. for individuals, 15-30 thousand rubles. for officials and 60-100 thousand rubles. - for legal entities. As Irina Levova, curator of the Svyaz and IT working group of the expert council, explained, the introduction of responsibility is designed to ensure a balance of interests of citizens and business.

It will be possible to verify the authenticity of the IMEI of the purchased smartphone and register it on a special website. The IMEI base is scheduled to be established by 2023. The importer or manufacturer will have to register the phone. Citizens will need to register the device only if it is purchased abroad. Payment for registration will cost up to 100 rubles.

2017

Rossvyaz project to regulate the turnover of mobile phones

Rossvyaz has prepared a project to regulate the turnover of mobile phones, involving the creation of a single register of IMEI identifiers in the Russian Federation. The database can include IMEI white and black lists, subscriber numbers and/or SIM card identifiers, Kommersant reported in September 2017. With this information, it will be possible to identify devices more accurately, which will avoid blocking phones with the same IMEI (if such blocking is necessary).

The main goal of the project is a ban on the use of stolen, counterfeit and illegally imported mobile devices in the country. Similar registries are already in place in India, the United States and the United Kingdom.

The basis for creating the IMEI registry may be the infrastructure of the Central Research Institute of Communications (TsNIIS), which currently keeps records of the numbers transferred by subscribers when changing operators. According to the head of TsNIIS Andrei Gryazev, the institute has been studying the draft unified register of IMEI for two years. Customers of such a database can be the Federal Customs Service, the Ministry of Communications, the Ministry of Industry and Trade and even security officials. Project financing can be carried out through subsidies from the state budget.

Mobile Identity Control (IMEI) Initiative

The Commission under the Federation Council discussed in the summer of 2017 an initiative to control mobile device identifiers (IMEI). The meeting was attended by representatives of, Ministry of Digital Development, Communications and Mass Media,, Roskomnadzor,, FCS,, MINISTRY OF INTERNAL AFFAIRS,, FSB,, State Offices of Public Prosecutor, and MTS VimpelCom MegaFon Tele2 Apple Samsung industry M.Video associations and. RATEK AKIT

Politicians proposed to establish a ban on the sale of telephones without IMEI on the territory of the Russian Federation and prepare appropriate changes to the customs legislation of the Eurasian Economic Union (EAEU). After the adoption of the innovations, it will be possible to study the issues of responsibility for the "flashing" of smartphones, the creation of the IMEI registry and the use of registry data by telecom operators. Most of the meeting participants supported the initiatives of the Federation Council, although MTS first proposed to solve the problem of "strangling" IMEI.

According to the recommendations of the GSM Association, IMEI assignment occurs voluntarily, but different device manufacturers may have the same code, so IMEI duplication occurs. According to AKIT, 5-10% of phones contain duplicated IMEIs. To solve this problem, it is necessary to introduce control by carriers of IMEI codes through the determination of the subscriber's phone ID, followed by reconciliation with the database of information about it and the identification modules used by it.

In the case of legalization of parallel imports, AKIT does not exclude the situation when phones intended for another state will be imported in the Russian Federation and thus having a double IMEI code in different countries. Therefore, the association considers it important to exclude cell phones from the parallel import program.

2011, State Duma deputies proposed blocking the operation of stolen mobile phones by IMEI. And in 2010, the Ministry of Internal Affairs proposed to oblige telecom operators to register IMEI. According to AKIT President Alexei Fedorov, regulation can protect citizens from terrorism and mobile phone theft^[3].

2016: Q2

According to IDC analysts, more phones were imported into Russia in the second quarter of 2016 than a year earlier. Experts did not name the exact numbers.

Experts note that in physical terms, the Russian market for "mobile phones" approached the level that was reached before the devaluation of the ruble in 2015.

In terms of dollar revenue, the market has yet to recover due to low retail prices. In April-June 2016, the supply of mobile phones to Russia in money reached $1.1 billion, while for the same period there was an indicator of $1.4 billion.

According to IDC forecasts, the market size in dollar terms will not return to the previous level. In the medium term, the Russian market will remain highly competitive and price sensitive.

2015: TrendForce Data

According to TrendForce analysts, in 2015, sales of conventional mobile phones (excluding smartphones) in Russia amounted to 17.07 million units against 20.97 and 23.29 million in 2014 and 2013, respectively. The degree of penetration of mobile phones in the Russian market reached 170% in 2015, experts calculated.

Statistics of sales of conventional mobile phones and smartphones in Russia for the period from 2009 to 2015, TrendForce data

2011: 40.5 million mobile phones sold, including smartphones

In 2011, 40.5 million mobile phones were sold in Russia, including smartphones, which turned out to be 16% more compared to 2010. In monetary terms, the market volume grew by 12% to 174.8 billion rubles, the largest Russian operator MTS wrote in its report.

In 2011, for the first time, the Russian mobile phone market reached the pre-crisis 2008 level in quantitative terms, but in monetary terms, the 2008 level could not be reached. Analysts attributed the lower revenue growth rate to increased competition and cheaper production of mobile phones.

In November 2011, an important event took place on the Russian mobile market - Korean Samsung first came out on top in terms of sales of mobile phones of all types to end consumers, while earlier this position belonged to the Finnish Nokia Corporation^[4].

Average price

In general, in 2011, the average price of a mobile phone decreased by 3% to 4315 rubles. compared to 2010, according to the report.

Smartphones

Шаблон:Main 'Smartphones (Russian market)

The volume of the smartphone segment in quantitative terms in the whole of 2011 reached about 7.7 million devices, exceeding the volume of last year by more than 2 times. In monetary terms, the segment grew by 80% and reached 83.3 billion rubles.

2010: Market Development Forecast

Retail sales of cell phones in the primary market in 2010 will grow in quantitative terms to 30 million units (data of Vladimir Bogdanov, ex-vice president of marketing at Euroset). At the same time, the retail value of the device in rubles will increase slightly, and the total revenue on the market will be about 150 billion rubles. But if operators launch a subsidized phone program from the middle of the 2nd quarter of 2010, then mobile phone sales can reach 31-32 million units with a total revenue of more than 160 billion rubles.

Bogdanov also expects that the share Euroset in 2010 will change little, but with the sales of subsidized Beeline phones (if they appear), the company's share (by number) in the primary retail sales market may increase to 33-34%. The share of retail sales, in "Connected" turn, will slightly increase due to the expansion of the network to 25% in December 2010. If subsidized phones appear on the market, the company will have to agree with operators on their sale: it will be easiest to do this with Megafon and, Tele2 believes the ex-vice president of Euroset. Otherwise, the company's share in the cell phone sales market may be at the level of the share of the end of 2009, even with an increase in the number of salons. As for RTK, provided that subsidized phones are sold, its share in the primary market may approach 18-20% by the end of 2010.

2009

According to a report distributed by Vladimir Bogdanov, ex-vice president of marketing at Euroset, in 2009, 27.5 million cell phones were sold in the primary retail market in Russia, which is 24% lower than the same indicator for 2008 and 9% - in 2004. In total, during the existence of cellular communications in Russia at the end of 2009, about 223 million mobile phones were sold.

Starting in the 3rd quarter of 2009, the market began to recover in number - mainly due to the replication of phones. If in the 1st quarter the fall was 27% compared to the same period in 2008, in the 2nd - by 36%, then in the 3rd - already 23%. In Q4 2009, 13% fewer phones were sold than in Q4 2008.

According to Bogdanov's estimates, if the total volume of the retail market for cell phone sales in 2008 amounted to about 46 million phones (in the primary market - more than 36 million and in the secondary market - 10 million units), then in 2009 it reached about 33 million units (in the primary market - several more than 27 million and in the secondary market - about 6 million devices).

In monetary terms, sales in 2009 amounted to $4.18 billion, which is 44% lower than the market volume for 2008, or 1.8 times, and in rubles - 131.6 billion rubles, which is 29% or 1.4 times less than the same indicator for 2008. This is only 7% higher than sales for 2004 in rubles, and in dollars - 3% lower.

In total, 2.5 million cell phones were sold on credit in Russia, which is 2.3 times less than the same figure in 2008.

Market share

As for the market share of various mobile phone vendors, in 2009, according to the report of ex-vice president of marketing at Euroset Vladimir Bogdanov, there was a trend of a sharp increase in the share of LG phones, Samsung's share continued to grow and SonyEricsson significantly decreased. The share of Nokia Corporation phones decreased slightly, and the share of the top four reached almost 90% of the market.

Average phone price

The average price of a cell phone sold in retail for 2009 was $152, which is 26% lower than the price of a cell phone, sold in 2008. In ruble terms, this figure reached 4827 rubles, which is only 6% lower than the cost of a cell phone in 2008. At the same time, the average price of a cell phone, sold on credit in 2009 and equal to 10,120 rubles, higher than 2.36 times the average price of a phone sold during this period for cash (data of Vladimir Bogdanov, ex-vice president of marketing at Euroset).

Retail revenue from cell phone sales

Retail revenue from sales of cell phones on credit amounted to $0.8 billion, which is 2.2 times less than the same revenue in 2008, or 25.2 billion rubles. - 1.7 times lower than the ruble figure in 2008 (data of the ex-vice president of marketing at Euroset Vladimir Bogdanov).

Shares of retail companies in 2009:

• Euroset - 30% (compared to 31% in 2008), the number of company salons in Russia in 2009 decreased by almost 10%.
• Svyaznoy - increased its market share by more than a third in 2009 - 23%.
• RTK - according to Bogdanov's estimates, at the end of the year it occupied a share of about 12%.

2008

Retail sales of cell phones in Russia in 2008 increased by 9.8% compared to 2007 to $7.48 billion, Prime-TASS reports, citing independent analyst Vladimir Bogdanov, who is vice president of marketing at Euroset from 2002 to 2007.

In 2008, 36.34 million cell phones were sold in Russia, which is 12% more than in 2007. The average retail price of the device for 12 months of 2008 was $205.8, which is 2.1% lower than the average retail price of a cell phone sold in 2007, which was $210.

The volume of replication (purchases to replace the model) of phones in Russia in 2008 amounted to about 90% of sales or 32.7 million phones. This is 34% more than the 2007 replica (26.6 million apparatus).