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The share of Chinese smartphone brands in imports to Russia in 2023 reached 79%, which is 4 percentage points higher than in 2022 and 29 percentage points higher than in 2021. Smartphone imports to Russia in 2023 increased by 13% to 29.5 million units, which, in turn, is due to the effect of a low base in 2022, according to a GS Group study (available to Vedomosti).

The Chinese Xiaomi became the leader in the number of smartphones imported to Russia, the brand's share in total imports last year amounted to almost 30% (9.1 million units), in 2022 8.3 million Xiaomi smartphones were imported. Other Chinese brands, Tecno and Infinix, took the second and fourth places in terms of shipments – 4.5 million and 3 million devices, or 13.8 and 9.6% of imports, respectively. Infinix shipments increased almost three times year–on-year, and Tecno - 1.6 times. According to CS Group calculations, the most popular models were the Tecno Spark 10C and 10 Pro; Infinix Note 30, Note 30i and Hot 30i.

In third place in 2023 was Korean Samsung, which imported 3.3 million devices to Russia – 11% less than in 2022, and more than three times less than in 2021. In total, the company took 10.2% of the total market last year. The main focus was on the import of a large number of different A-series models. The fifth place in terms of the number of imported devices is occupied by the American Apple (2.5 million units), whose share has fallen 1.8 times since 2021 – from 14.3 to 7.8%. Most of all, the company supplied the iPhone 13, iPhone 14 and iPhone15

According to M.video-Eldorado, smartphone sales in Russia as a whole in 2023 increased by 25% to more than 30 million units, which is comparable to the figures of 2021. The share of Chinese manufacturers reached its historical maximum in the Russian market – more than 75% in quantitative terms and about 50% in monetary terms, notes a representative of a retail chain. According to representatives of Ozon and Wildberries, in 2023 the share of Chinese smartphones increased and amounted to about 80% in unit terms. Representatives of Ozon and Wildberries refused to disclose the shares of each of the brands.

For the first time, Chinese companies Xiaomi, Tecno and Realme were among the three most popular brands in unit sales in Russia, says a representative of M.video–Eldorado. They are followed by Samsung, Infinix and Apple, adds a representative of the retailer. "It's hard to say whether Chinese newcomers will be able to hold their positions, but at the moment the trends are extremely positive," GS Group analysts say.  

Russians most often choose smartphones in the average price category, 15,000-30,000 rubles, experts say "Check index" of the company "Platform OFD" (operator of fiscal data). In this price category, more than 70% of devices are represented by Chinese brands, and in total, more than 50% across the entire market. In particular, the top 3 brands include Xiaomi, Realme, Honor, adds a representative of the OFD Platform. According to him, in the second half of 2023 the demand for the more expensive segment increased more actively – by 35% year on year – from 60,000 rubles, where Apple and Samsung are more represented, but the demand for them is more concentrated in the largest cities.

According to the representative of M.video-Eldorado, the share of devices worth up to 15,000 rubles in unit sales increased to 60%, in monetary terms they accounted for about 25%. Smartphones more expensive than 50,000 rubles, as a year earlier, took 40% of sales in monetary terms, and 10% of the market in quantitative terms. In monetary terms, Apple holds the lead, said the representative of M.video-Eldorado.

According to CS Group analysts, the open door policy for Apple and Samsung, despite their official departure, helps them maintain their positions in Russia. But the technological growth of Chinese competitors is clearly visible, which already allows us to move from simple competition in price to competition in technical characteristics, device reliability and distribution and service policies, the study says.

The growth of imports in quantitative terms is associated with a change in the structure of imports in favor of cheaper Chinese brands and, adjusted for the exchange rate, is comparable to 2022, says Mikhail Burmistrov, CEO of Infoline Analytics. The growth of Chinese devices will continue, but only slightly, as the resource for rapid growth has been exhausted, says Sergey Villanov, an analyst at the Fintech Lab accelerator. Rather, the struggle for market share among Chinese manufacturers will begin, the expert suggests.

"The premium Oppo brand has practically disappeared from the market, and the recent extension of the international guarantee for the flagships of this brand to Russia says that a return is planned," Villanov gives an example. "Huawei has also rebounded in the Chinese market after the sanctions, and Russia looks like a natural market for a new start in international sales."

According to Burmistrov, when assessing the share of Apple and Samsung, it should be taken into account that we do not see part of the imports, since some of the goods were carried as goods for personal use, and some were bought abroad. At the same time, towards the end of 2023, Apple and Samsung smartphones in Russia became the cheapest (compared to their prices in other countries. – Vedomosti), says Burmistrov. Firstly, this is due to the lack of recommended prices, secondly, to a certain oversupply of goods supplied by parallel imports, and thirdly, to unprecedented promotions, he explains.

According to Vilyanov, the halving of Apple's shipments is due to the fact that basic functions such as contactless payment do not work on new models, there are problems installing important applications and, most importantly, there is no warranty repair in Russia. In addition, he notes, there is no deferral of payment: "The business model of official retail is simply not sharpened for this."

Samsung, due to its relatively large margins, generously supported retail, as well as conducted advertising campaigns and worked with opinion leaders, says Villanov. "After the company left Russia, all activities stopped, and from the point of view of sellers and buyers, Samsung became just one of the manufacturers of Android smartphones," the expert believes. "Now Samsung is trying to promote marketing activities through partners again. The results of these efforts will be judged by the results of 2024."

The share of Apple and Samsung will continue to decline, Burmistrov believes. "Samsung is moving at a faster pace because it is losing market share faster. And Apple will shrink more slowly, since the company has a very strong brand and many have not yet gone beyond the ecosystem," the expert concluded.

Source: https://www.vedomosti.ru/technology/articles/2024/02/20/1021194-smartfoni-brendov-knr-zanyali-80-importa-v-rossiyu?utm_campaign=newspaper_20_2_2024&utm_medium=email&utm_source=vedomosti