Over 70% Of Russian Smartphone Market Now Captured By Chinese Brands

According to consumer electronics shop M.Video-Eldorado, Chinese smartphones accounted for more than 70% of the Russian market in the first quarter of 2023, up from about 50% the previous year.

After Samsung and Apple both reduced sales in Russia due to the situation in Ukraine, China’s smartphone industry has exploded, with Chinese manufacturers Xiaomi and Realme currently holding the top two positions.

Moscow has dramatically boosted its usage of the yuan, increased energy supplies to China, and begun selling more automobiles with Chinese brands as Western automakers leave Russia, increasing its dependence on Beijing.

According to M.Video, the top retailer of consumer electronics in Russia, Apple and Samsung have fallen from first and third place in 2022 to third and fourth, respectively.

“Demand for brands from China in quantity terms increased by 42% relative to last year, and their total share was over 70%,” M.Video added in a statement on Monday.

According to a report in Kommersant newspaper last month, Russia is attempting to wean itself off Western technology and has instructed officials working on the 2024 presidential election to stop using Apple iPhones due to security concerns.

The Kremlin has also taken steps to permit Russian businesses to import certain goods—including smartphones—without the license holder’s consent through a process known as “parallel imports.”

Analysts claim that the majority of devices are imported from China, but according to research by GS Group, which was cited by the Vedomosti newspaper in February, parallel imports allowed iPhone imports from India double in 2022 compared to the previous year.

Since Western sanctions have contributed to economic contraction and declining wages in Russia, M.Video and mobile operator MTS have started selling discounted and used smartphones to Russian consumers. M.Video reported that the first quarter of this year saw a rise in smartphone demand.

(Adapted from FlipBoard.com)

Categories: Economy & Finance, Entrepreneurship, Geopolitics, Regulations & Legal, Strategy, Sustainability

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