Demand for flagship smartphone models has increased due to currency instability

In the third quarter, smartphone sales in Russia grew by 44% in volume and by 66% in monetary terms. According to retailers, the greatest demand was for flagship devices costing more than 80 thousand rubles. Market participants attribute the situation to the instability of exchange rates, due to which Russians began to buy gadgets, fearing further price increases. According to experts, by the end of the year the market may return to the levels before the outbreak of hostilities in Ukraine.

As MTS told Kommersant, in the third quarter 8.1 million smartphones were sold in the Russian Federation (an increase of 44%) for 181 billion rubles. (66% increase). Apple’s share of money increased by 5 percentage points (p.p.), to 29%, Samsung – by 4 p.p., to 17%, Tecno – by 3.2 p.p., to 8.3% ( 5.1%). At the same time, Xiaomi’s share decreased by 12 percentage points, to 22%. In units, the leader was Xiaomi (32%), although its share fell by 9 percentage points. Next come Chinese Tecno with a share of 15% and Infinix with 11%. Samsung’s share remained unchanged (10%), Apple’s share increased by 0.7 percentage points to 7%.

The greatest demand, the operator clarifies, was for flagship devices costing from 80 thousand rubles: so, if in the third quarter of 2022 140 thousand such smartphones were sold for 14 billion rubles, then in 2023 – 400 thousand for 46 billion rub. “The growth may be due to changes in exchange rates, which prompted Russians to buy expensive smartphones,” says an MTS representative.

According to the director of restore: Rasim Lemberansky, online sales of Apple smartphones doubled in the third quarter: “In July-August, the growth was associated with the expectation of a further rise in the dollar exchange rate, in September – with the release of the iPhone 15 and at the same time with continued interest in the iPhone 14″.

“Probably, buyers of flagships are afraid that subsequent devices will cost more due to rising exchange rates; the current price may seem to them the last relatively profitable opportunity for a purchase,” agrees business analyst at the IT holding Fplus Artur Makhlayuk.

According to Finam analyst Leonid Delitsin, the main factor in the overall growth of the smartphone market was the reduced demand for devices in 2022, as well as the general rise in price of devices due to increased supplier costs.

According to M.Video-Eldorado, from January to September, about 21.5 million smartphones were sold in the Russian Federation, which is 25% more than the same period last year and comparable to the results of 2021. According to the retailer, in physical terms, 60% of the market is occupied by devices costing 5-15 thousand rubles, 15% – 15-20 thousand rubles, 8% – up to 5 thousand rubles, another 7% of the market in units for phones costing 30–50 thousand rubles. Flagship models cost more than 50 thousand rubles. accounts for 10% of the market in pieces and 40% in money.

The director of the unified procurement department of Merlion and Citylink, Oleg Fomenko, confirmed the assessments of other players. According to him, the growth in sales of flagship gadgets is associated with the release of new, more expensive devices that are in demand among consumers, as well as a shift in demand in favor of more functional models: “In general, we see that the market is recovering to the level of 2021.”

Mr. Fomenko believes that by the end of the year, sales of smartphones in the Russian Federation will reach 720–750 billion rubles. Arthur Makhlayuk agrees that in the fourth quarter the positive dynamics will continue and the sales volume will be about 8.3 million smartphones, and for the whole year – about 29.6 million units. In 2022, according to M.Video-Eldorado, 22 million smartphones were sold in Russia.

Timofey Kornev