Svyaznoy, a leading mobile device retailer, reports that smartphone sales in Russia reached 176 billion rubles (approximately $5.6 billion) last year, up 35% from 2012. While still significant, the rate of growth has slowed compared to previous years.
Meanwhile, smartphone penetration in Russia has continued to progress, reaching 48%. 18.5 million out of the 39 million mobile phones purchased last year were smartphones – a 51% increase from 2012.
For the first time, in December 2013, more than 2 million smartphones were sold in just one month, securing 63% of the total sales of mobile phones in units. This monthly figure is equivalent to the entire annual sales of smartphones in 2009.
One factor behind the decreasing growth in value is the decreasing average price for these devices – no more than an average of 9,500 rubles ($305) in 2013, down from 10,600 rubles ($341) in 2012. The downward trend in prices was clear in December, with an average of 8,600 rubles ($282) per device.
One third of smartphones were purchased for less than 3,000 rubles ($96) in 2013.
Russian consumers’ favorite smartphone brands were Samsung, Nokia, Apple, Sony and HTC, which accounted for 60% of total sales during the year. Samsung remained at the forefront as illustrated by the record-breaking sales of its latest smartphone, the Galaxy S4 on April 26.
Meanwhile, Apple – which had thus far adopted an elite positioning – celebrated its entry in the top 3 of smartphone makers. iPhone sales grew three-fold in 2013 compared with 2012, boosted by the Apple online store launched in Russia this past summer. At end of 2013, Apple had a 13% share of the smartphone market in value.
Apple reached this result after reconsidering its policy for the Russian market and adapting its pricing for its older devices like the iPhone 4 to appeal to larger groups of consumers. The new iPhone 5S and 5C were launched in late October 2013 – just a month and a half after the launch in other major countries – at prices quite similar to those on found in West European markets, but without operator subsidies.
Record-setting year for tablets
Apple’s rising position in the Russian electronics market was strengthened by the record-setting growth of tablet sales. Russia is now the world’s number three market for tablets after the United States and China.
In Russia, 2.77 million tablets and electronic books were sold in Q3 2013, up 25% from the second quarter, including 2.4 million tablets. For the same period in the US, 9.7 million items were sold out of which 9 million are tablets.
Sales of e-readers specifically fell to 1.2 million units in the last 10 months of the year, a 21% decrease from the same period the previous year. The drop can be explained by the growing popularity of tablets.
In March, Apple’s iPad 4 won the “Best Gadget of the Year Award” from Mail.ru Group in the laptop and tablet category.
