Huawei is all in parallel – Newspaper Kommersant No. 210 (7411) dated 11/14/2022
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Huawei has seriously increased the supply of smartphones in Russia for nine months, mainly in the third quarter. As a result, the company’s share in imports increased to 2.8%, while a year earlier it was about 1%, according to GS Group. Retailers specify that deliveries go through parallel imports, but Huawei itself continues marketing activities in the country. The reduction in the share of other manufacturers, including Samsung and Honor, gives the company the opportunity to restore its position in the Russian Federation, experts say.
“Kommersant” got acquainted with the report of the analytical center GS Group on the import of mobile phones in the Russian Federation for nine months. According to the company, more than 500,000 Huawei smartphones were imported into the country during this period, with the bulk of the shipments coming in the third quarter. The vendor’s share in smartphone shipments reached 2.8% over the three quarters, while a year earlier it was only 1%. Imports of two other Chinese brands, ZTE and Honor, completely stopped in March, and their share in deliveries for the nine months was 1.5% each.
In just nine months, 19 million smartphones worth 364 billion rubles were imported into Russia, which is 23% less in units compared to the same period last year, the GS Group notes. Analysts of the company expect that the smartphone market in the Russian Federation will recover in the coming years, but will not exceed the level of previous years (35-37 million units per year).
The first place in the supply of smartphones in the Russian Federation is occupied by Xiaomi with a share of 35%. South Korean Samsung is still in second place (15%), its deliveries in units decreased by 63% year-on-year. Realme, on the other hand, increased shipments in nine months by 67%, with most of the volume coming in the third quarter. The share of Realme was 14.6%. Tecno is in fourth place with a 7.6% share, and the brand quadrupled shipments in three quarters. iPhone imports decreased by 58%, the company’s share in the supply of smartphones in the Russian Federation almost halved over the year, to 7.3%.
Huawei has increased the supply of smartphones in Russia for the first time since 2019. In 2018, the company fell under US sanctions, as a result of which it lost its partnership with Google and access to its services. After that, Huawei began to develop its own Harmony OS and spun off the Honor sub-brand into an independent company, which is not subject to sanctions. Huawei itself in Russia focused on the supply of other devices, including laptops.
In the third quarter, 127 thousand Huawei smartphones worth 2.9 billion rubles were sold in the Russian Federation, says a Kommersant source in one of the telecom operators. This is 25% more in unit terms and 82% more in monetary terms when compared with the results of the third quarter of 2021, he added. Several hundred items of Huawei equipment are available in M.Video-Eldorado, the retailer’s press service said, and “stocks of the brand’s products are regularly replenished.” Citilink, MegaFon, MTS, Vimpelcom declined to comment. Huawei and Honor did not answer “Kommersant”.
Huawei smartphones are tinkering in the Russian Federation according to the parallel import model, and not by the manufacturer, Kommersant is told by a source in one of the retailers. At the same time, Honor and Huawei themselves continue their marketing activities in the country: they order materials from bloggers and the media, and also train retail employees, adds a source in another retailer. Although Honor, he clarifies, rather “concentrated on business development in the CIS countries.”
TelecomDaily analyst Ilya Shatilin says that Huawei has really stepped up in the Russian market. According to Mr. Shatilin, the reason is that the vendor is not too afraid of secondary sanctions for working in Russia. “For a Russian buyer, the vendor’s own ecosystem is now becoming an advantage — the Huawei AppGallery has applications from banks that have been sanctioned and removed from Google Play, you can buy paid applications and pay through the Huawei Pay service,” he says.
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