“M. Video” and “Svyaznoy” has recorded a decline in prices for smartphones in Russia

Photo: Wally Santana / AP

The average price of smartphones in Russia in the first quarter of 2017 declined by 2.5-4%, estimated by retailers “M. Video” and “Svyaznoy”. This happened due to the reduction in retail prices for products of Apple, Samsung and several Chinese brands

According to preliminary data of analytical Department of “M. Video”, in the first quarter of this year the average price of a smartphone in Russia decreased by 2.4% and amounted to 12 thousand rubles. Recorded a decrease in average price by 4% to 11.7 thousand roubles and a cellular retailer “Svyaznoy”. According to the representative of “Coherent” Sergey Tikhonov, the average price for smartphones fell for the first time since the third quarter of 2014.

The representative of “M. Video” Valeria Andreeva explained the decrease in the average price reduction in the cost of smartphones from manufacturers such as Apple and Samsung and some Chinese models. In January, Apple has reduced the prices of their flagship smartphones to 7-8%. After a competitor reduced prices and Samsung, reported “Interfax” with reference to the head of Samsung Mobile in Russia. The price adjustment amounted to 5-10%.

The decline in average prices influenced by the fact that the smartphone market for the first time since 2014 in quantitative terms, grew faster than cash, said Andreev. So, in terms of units, smartphone sales grew by 5% compared to the first quarter of 2016, up to 6 million units and in value by 3%, to 72 billion rubles.

Thus, according to the representative of “M. Video”, the share of smartphones in the high price segment (from 40 thousand rubles and more) at the end of the first quarter showed a slight increase for the first three months of 2016, while the share of cheap smartphones (up to 10 thousand rubles) fell. In the middle price segment (10-20 thousand rubles) sales increased, as a result, its share in total sales increased to 27.3% compared to 21% a year earlier. “This is due to the significant increase in smartphone sales of brands Xiaomi, Meizu, ZTE, Huawei and Honor that are gaining popularity due to attractive technical options at affordable prices”, — said Valery Andreyev. The combined share of these brands, according to preliminary data, at the end of the quarter could reach up to 20% in units and 16% in money.

According to preliminary estimates of “Coherent”, in the first quarter, Russia had sold over 6.5 million smartphones, which is 15% more than in the same period in 2016. The volume of this market increased by 9% and amounted to more than 76 billion rubles, the Representative of Svyaznoy noted that the main driver of growth of the smartphone market became credit offers for which demand is consistently high. This was accepted by the representative of “M. Video”: in this network, every third smartphone sold on credit, which is associated “with the timely launch of interest-free credit offers on demand device.” Contribution to the growth of the market has made the popularity of certain categories of smartphones, such as devices supporting LTE and phablets — devices with a screen diagonal of 5 inches.

As previous analytical company J’son & Partners Consulting, in 2016 the average price of a smartphone has increased by 22% compared to 2015 year and amounted to 12.1 thousand RUB, the figure was the highest since 2009. The main driver of growth, analysts say the growing demand for devices priced above 15 thousand rubles., which is often purchased on credit.

However, representatives of MTS and “the Euronetwork” does not agree with the conclusions of the competitors on the reduction of the average price of smartphones in the first quarter. According to the representative of MTS Dmitry Solodovnikov, the average price of a smartphone for the first quarter increased by 0.7% to 12.3 thousand rubles. He said that the main growth of the index was observed from the fifth week of the quarter (January 30 — RBC) in connection with the increased sales of smartphones middle and high price segments. The representative of “Euroset” reported that the average cost of a smartphone in Russia will amount to 12.4 thousand rubles, which is 1.6% higher than in the first quarter of 2016. The Executive Vice-President of “Euroset” Victor Lukanin assessed that in quantitative terms, the smartphone market grew by about 5%, in cash and “slightly”, but no absolute figures are mentioned. Due to the stabilization of the ruble clients freely spend money”, it affects and beneficial program installments and loans,” said Lukanin.

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