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Mobile phones sales in Russia down 14% in 8 months, market has not reached bottom

September 28, 2015, 11:38 UTC+3 MOSCOW
1 pages in this article
© ITAR-TASS/Marina Lystseva

MOSCOW, September 28. /TASS/. The Russian market of mobile phones and smartphones in January-August of 2015 compared to the same period in 2014 decreased by 14% in quantity terms (to 23 mln units), but increased by 5% in value to 162 bln rubles ($2.47 bln), according to Euroset study published Monday.

"We think that the crisis of 2015 is more protracted, the market has not hit its "bottom" yet. In 2009 the sales lows have been recorded earlier," the study said. The maximum drop in demand since the beginning of the year was observed in March and amounted to 20%. The most significant decrease in 8 months was in the Ural region and Siberia. The lowest demand for mobile phones and smart phones fell in the Moscow region, as well as in the Far Eastern and Northwestern Federal District.

The study showed that even in times of crisis, the consumer is not always looking for the cheapest offer, specifications are the most important thing. At the same time, loyalty to a particular brand left the first position this time. B-brands (manufacturers of so-called "second-tier") continue pressuring known market players.

The share of smartphones in the total sales volume in the first 8 months of 2015 compared with the same period last year increased from 60% to 65% in units and 88% to 91% in money terms. At the same time the number of smartphones sold in the market for the period declined by 6% to 15 mln units amid rising market volume of these gadgets in monetary terms by 9% to 147 bln rubles ($2.24 bln). The average price of smartphones grew by 16% to 9,600 rubles ($146.2).

Most often, the Russians buy low cost smart phones: the price of 38% devices purchased in January-August of 2015 does not exceed 5,000 rubles ($76.15) (last year the rate was 44%). However, the share of sales of smartphones in the companies' revenue amounted to only 13%. 34% of customers chose devices for 5,000-10,000 rubles ($76.15 - $152.34), they account for the most revenue - 24%. Expensive smartphones with the cost starting at 30,000 rubles ($457.28) account for lesser revenue volume - share of such gadgets in the revenue increased from 5% in January-August 2014 to 23% in the same period in 2015

The market share of phablets (smartphones with large screens) is gradually increasing - in January-August of 2015 their share increased compared to the same period of 2014 in quantitative terms from 2% to 4%, and in money terms - from 4% to 8%. The share of smartphone supporting NFC (technology used to pay for goods and services): in the first 8 months of 2015 customers bought 17% of devices with, these gadgets have brought retailers 41% of proceeds from sales of smartphones.

The segment of tablets and other portable electronics market is stagnating. The volume of the Russian market of tablets declined in the first 8 months of 2015 compared to the same period last year by 41% to 3 mln units in quantitative terms and by 34% to 32 bln rubles ($487.8 mln) in money terms. The average price of a tablet increased by 12% and amounted to 10,200 rubles ($155.46). Russian consumers prefer tablets below 5,000 rubles ($76.15), their market share in January-August 2015 amounted to 41% in volume terms. However, the most money retailers get from selling tablets from 5,000 rubles ($76.15) to 10,000 rubles ($152.34) - their share in revenue totals 26% despite the fact that sales in quantitative terms account for 32% of the market.

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