Smartphone sales in Russia soared thanks to the iPhone 12

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12 August 2022 17:3812 Aug 2022 17:38 |
Share According to the GS Group analytical center, the Russian smartphone market in the first six months of 2022 grew by a third to 480 billion rubles, while in unit terms it increased only by 6% to 20.3 million devices. Xiaomi and Realme are gradually replacing expensive Huawei models, while Apple is collecting record revenue in the premium segment thanks to the iPhone 12.

Russian mobile market 2022

At the end of the first half of 2022, sales of mobile phones in Russia grew by 6% year-on-year in unit terms and reached 20.3 million units, while in monetary terms the growth was 36% year-on-year to RUB 484 billion. (including all commissions and VAT), the GS Group analytical center told CNews.

The main reason for the significant growth in market revenue, according to analysts, was the increase in the selling price of the iPhone model range - by an average of 21%, due to the release of the iPhone 12. The second and less significant reason for the increase in turnover, analysts call the process of partial replacement of Huawei models with more expensive Xiaomi smartphones and Realme.

Xiaomi emerged as the market leader with growth of 133% year-on-year to 5.3 million units. As a result, the company's share in the Russian smartphone market reached 32.5%. The total share of Chinese brands in the middle and upper price segments was 53% (55% in 2022). In general, in the entire smartphone market in Russia, the share of Chinese brands at the end of the first half of the year was 51% (56% in 2022).

The share of Russian brands in the mobile phone market, including smartphones and push-button models, continues to fall, as the segment of push-button devices itself is shrinking and its share in the overall market is falling. At the end of the first half of 2022, the share of Russian brands fell to 15%.

From March 1, all smartphones in Russia will become more expensive due to a new law

Miscellaneous 02/14/2022 | 0

It is no secret that for more than 20 years, the Russian authorities have been making each and every person living in the country happier, and at the same time they are using all possible means and methods among all those that can only be . And now, as it became known, soon the citizens of the Russian Federation will feel the consequences of another new law, which should improve the life of everyone, turning it into an even more beautiful fairy tale than ever before until this very moment. As of March 1, all electronics imported into the country will begin to be marked, as is now the case with clothing, food, and goods from other categories, all of which, in connection with this, have become very noticeably and extremely significantly more expensive.

Officials from the Ministry of Industry and Trade of the Russian Federation found a way to improve the lives of the entire population of Russia by finalizing a project to introduce mandatory labeling for all electronics, including smartphones, tablets, e-readers, video cameras, tablets and various other electronic devices. Even printed circuit boards will be marked, that is, motherboards, video cards, processors and other components that are planned to be sold in Russia. Moreover, in addition to this, a recycling fee will also be introduced, which will also lead to an increase in the cost of products. All companies that import products from abroad will have to pay a recycling fee at the time of import of goods, so the price tags for all buyers for the items sold will increase significantly.

Already on March 1, an experiment will begin to introduce labeling for electronic products in order to identify its weaknesses and completely eliminate them by finalizing the bill. The experiment will continue until January 31, 2023, after which labeling for electronics will become mandatory for everyone, as well as paying a recycling fee. According to the Ministry of Industry and Trade of the Russian Federation, which is actively promoting this law and similar ones, this kind of innovation will protect Russians from another threat, namely, low-quality products. In addition, thanks to labeling, it will be possible to combat illegal trafficking of goods. The introduction of a recycling fee, in turn, will have a positive impact on the environment in the country.

This kind of innovation is expected by everyone soon, and what is most interesting is that ordinary buyers will not notice any changes, except perhaps updated price tags, which can increase significantly. We can only believe and hope that the new law, which was adopted for the sake of ordinary Russians, will make the lives of everyone and everyone truly an order of magnitude better than ever before. However, as a rule, for any improvement in Russia, everyone and everyone who lives in the country has to pay in rubles from their own pocket, shelling out money for everything that is even possible, because just a few years ago the Russian authorities raised the VAT up to 20%, which also negatively affected the cost of all goods, as well as various types of services.

Earlier, information appeared that a new dangerous virus was stealing money from Sberbank Online and destroying smartphones en masse.

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Price issue

Revenue from the mid- and high-end smartphone market (from 8 thousand rubles) in the first half of 2022 amounted to 468 billion rubles. with a growth of 39% year on year, GS Group analysts calculated. Thanks to the start of sales of the iPhone 12 family and an increase in selling prices, Apple's turnover doubled, as a result of which the company's share in the turnover of the Russian smartphone market over the year increased from 29% to 44%. Another 44% of the market in monetary terms falls on Samsung and Xiaomi.


During the first half of 2021, 20.3 million smartphones worth 480 billion rubles were sold in Russia (GS Group)

Phones up to 8 thousand rubles. (push-button and smartphones) accounted for 1.7% of market turnover in the first half of the year. Share of smartphones with an estimated price of 8 thousand rubles. increased to 68% (14.5 million units). The share of push-button phones in monetary terms fell to 1.1%, having decreased by 11% over the first half of the year to 3.8 million units.


Russian smartphone sales in the first half of 2022

During the first half of the year, purchasing prices increased only at Apple; for other brands they either decreased slightly or remained the same, despite rising prices for components and logistics. According to analysts, now the main players are “eating away the accumulated fat,” and in the future this promises either further market consolidation or rising prices.

Leaders of the Russian market

The total share of the top three leaders in the Russian smartphone market - Xiaomi, Samsung and Apple - decreased over the past six months to 74.7%. Together with Huawei and Honor, the total share of these brands was 77.4%, although a year ago it reached 89% of the market. According to analysts, the leaders have not been able to fully replace Huawei. In general, for the first half of the year, deliveries of the top three amounted to 12.3 million units, the remaining brands accounted for 22.6%, of which 9.4% were in the lower price segment (3-8 thousand rubles) and 13.2% in the middle and upper price segments.

Xiaomi deliveries in the first half of 2022 amounted to a record 5.3 million units, the market share in Russia reached 32.5%. The main breakthrough occurred in the second quarter, when the company shipped 3.2 million smartphones to Russia.

Russian sales of Samsung smartphones increased by 7% year-on-year and amounted to 4.8 million units, while the company’s share in the Russian smartphone market decreased to 29.3%. Russia's share in global Samsung supplies dropped to 4.3%. At the end of the first half of the year, 72% of Samsung's supplies fell on the middle segment: half - 8-26 thousand rubles, a quarter - 18-26 thousand rubles. 7% up to 8 thousand rubles, the rest in the upper segment.

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IT trends

Apple sold a record 2.1 million iPhones in Russia in the first half of the year, the company's market share increased to 12.9% for the first time in the last five years. According to analysts, if the pace is maintained, Apple can sell about 5 million iPhones in Russia by the end of 2021, and the total fleet of iPhones in the hands of Russian users will approach 20 million units. So far, 2022 remains a record year for Apple with sales of 4.3 million units.

Realme, which occupies fourth place, shipped 0.9 million smartphones to Russia in six months, showing an increase of more than five times year on year. Now Realme occupies 5.4% of the smartphone market, although the brand first came to Russia only in the spring of 2022. According to analysts, by the end of 2022, the import of Realme smartphones to Russia will exceed 2 million units. The owner of the Realme brand, as well as Vivo and Oppo, the Chinese holding BBK Electronics, totaled 8.5% of the Russian smartphone market in the first half of the year.

The Tecno brand shipped 0.24 million units in the first half of the year, showing a six-fold increase; Nokia and ZTE doubled last year’s volumes to 0.13 million units and 0.1 million units, respectively; Itel delivered 0.1 million units.

Russian smartphone market: results of 2022 and market trends

The M.Video-Eldorado group summed up the development of the Russian smartphone market in 2022. According to preliminary estimates, sales of smartphones in Russia in 2022 could amount to about 30 million devices worth about 495 billion rubles, which is 1.5% more in units and 7% in money than in 2022. For the eighth year in a row, Samsung remains the most popular brand among Russians, while the influence of Chinese players is increasing, occupying 50% of the market in volume terms.

The volume of the Russian smartphone market in 2022 amounted to about 495 billion rubles, adding 7% to last year, and was almost twice as large as in pre-crisis 2014 (see graphs). Sales of smartphones from the M.Video-Eldorado Group in 2022 increased by 19% in units and 17% in money, showing dynamics several times higher than the market. The strengthening of positions was facilitated by the expansion of the telecom range at Eldorado, favorable price offers, pre-orders for key new products and the m_mobile M.Video format. In 2019, the number of Group stores exceeded a thousand, and the number of m_mobile digital boutiques almost tripled to 19.

Samsung became the leader in unit sales with a share of about 30%, but together Huawei and Honor occupied a third of the market. In monetary terms, the first place is held by Apple, which successfully launched the new iPhone 11 line.

Russian smartphone market in 2014 - 2019:

The replacement period for smartphones increases to 2-2.5 years, which contributes to the popularity of more functional and productive models costing in the range of 10-20 thousand rubles. (this segment added 10% in units and 25% in money over the year), as well as flagships from 50 thousand rubles. (+25% and +30% respectively). As a result, over the year the average price of a smartphone on the Russian market increased by 1,000 rubles. and amounted to 16.5 thousand rubles.

“Every day, a smartphone plays the role of a wallet, a camera, a means of communication, a work tool, even a remote control for a kettle or a smart home system. Users are approaching the choice of such an important assistant more and more rationally and purchasing with a view to the next 2-3 years, until new significant innovations appear. In order for the client to make an informed decision, we are opening areas with open display in the M.Video and Eldorado stores, where you can test the latest smartphones and accessories,” notes the head of the Mobile Technology Department at the M.Video-Eldorado Group. Vladimir Chaika.

The smartphone market continues to center around five leading brands - Samsung, Honor, Xiaomi, Apple and Huawei. The leaders account for 82% of smartphones sold and 92% of the market's monetary volume.

In 2022, competition for the top five came mainly from Chinese and Russian brands with a share of 0.7-1.7%, occupying another 10% of the market in units: BQ-mobile, Vertex, ZTE, Nokia, INOI, Asus, Prestigio, Vivo and Oppo . The influence of Chinese brands is increasing. The most popular and trustworthy among buyers, Huawei, Honor and Xiaomi, occupied about 43% of the market, another 7% accounted for about 15 brands of categories B and C. Two years ago, companies sold only every fifth smartphone, and in 2022 - 40% of the market in pieces came from Chinese manufacturers.

In conditions of qualitative demand, the trend continues to increase the diagonal (from 6″) and the working surface of the screen (from 99% of the front panel area), as well as expanding capabilities (RAM from 128 GB, camera from 16 MP, biometrics, NFC, etc.).

Other smartphone market trends for 2022:

  • Among the technical characteristics, the demand for smartphones with RAM of more than 128 GB has increased (an increase of 2.5 times), the share of models with a main camera of 16 MP, as well as three and four modules has increased. In physical terms, the share of devices with the 4G communication standard reached 93%, two SIM cards support 90% of devices, 70% (+10 p.p.) of smartphones have biometric authentication capabilities.
  • The share of smartphones with a diagonal of 5 inches exceeded 75% of the market, and models up to 4″ decreased to 1%. All key smartphones of 2022 were equipped with a screen from 6 inches, and the first devices larger than 7″ also appeared.
  • The trend towards frameless design is intensifying; to increase the screen area, manufacturers are removing the fingerprint scanner on the rear panel, cutouts at the top of the screen are being used less and less, and the front camera is becoming retractable. The range of smartphones whose screen occupies more than 99% of the front panel area is expanding.
  • The most unusual new product of the year was a smartphone with a flexible frameless screen, the Samsung Galaxy Fold.
  • The most popular smartphone of 2022 in terms of money and pieces was the Samsung Galaxy A50.

The leader in the ranking of best-selling smartphones was the Samsung Galaxy A50, which went on sale in March 2022. The top 5 unit sales included two more Samsung smartphones - Galaxy A10 and Galaxy J2 Core, as well as two models from Honor - 7A and 10 Lite. In terms of money, the Samsung Galaxy A50 also became the leader. The top five also included flagship smartphones of past years from Apple.

Rating of the best-selling smartphones in Russia for 2019

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