Smartphone sales in Russia increased by 25% to reach 2021 levels

M.Video-Eldorado Group, Russia’s leading e-commerce and electronics and home appliances retailer, has estimated smartphone sales in the Russian market for the first nine months of 2023. In January-September, Russians purchased about 21.5 million devices, which is 25% more than a year earlier, while being comparable to the 2021 result. The average check decreased by almost 10%, to 21.3 thousand rubles. Demand peaked this year in the third quarter, when unit sales totaled 8.5 million smartphones – 30% more than in the first and second quarters, when 6.5 million devices were sold in Russia.

M.Video-Eldorado estimates that in the first nine months of 2023, the share of Chinese manufacturers in Russia increased to 75% in quantitative terms, while in monetary terms their share amounted to 50%. Manufacturers from the Celestial Empire are actively increasing their presence and expanding their smartphone lineup in popular segments to suit different needs, engaging in their product ecosystems, and building recognition and trust among the buying audience.

Competition between leading brands is intensifying, reflected in the narrowing gap between the market shares of the leaders. Xiaomi holds the lead in terms of unit sales in Russia. On the second line – realme (#3 a year earlier), on the third – Tecno (#5 a year earlier), the fourth – Samsung (#2 last year). At number five was Apple (#4 last year), which was approached by the Infinix brand. Apple continues to hold the number one position in monetary terms.

In price segments, the share of smartphones priced from RUB 5,000 to RUB 15,000 increased from 55% to 60% in quantitative terms, while in monetary terms it also grew by 5 p.p. to 25%. About 7% of the market in units and 12% in money, at the level of last year, were occupied by models in the category of Br30-50 thousand. Still about 10% in unit sales and 40% in money fall on devices more expensive than Br50 thousand, where almost half are devices from Br80 thousand – the most advanced flagship models and gaining popularity folding smartphones. In addition, 15% of devices are purchased by Russians in the range of 15-20 thousand rubles, and about 8% of sales are in the segment up to 5 thousand rubles.

“In the new market realities, we have successfully restructured our purchasing, supply chain and other processes, which allow us to offer customers a balanced assortment to suit their needs and budget, including key new products. We also continue to hold major sales, expand the selection of special offers and installment programs, which allows customers to make their purchases more attractive and comfortable. In demand, we see partly a reorientation of demand towards the mid-price segment, where Chinese brands are most widely represented. Consumers pay a reasonable price for quality assembled devices with advanced technologies and features. On the other hand, there is still interest in more expensive, functional and status devices. This can be seen, for example, in the stable demand for Apple gadgets, including the new line of iPhone 15, which at the pre-order stage turned out to be twice as popular as the previous series.
Head of Telecom at M.Video-Eldorado Group Sergey Uvarov