Globally, 2020 is quickly shaping up to be a year of historic developments, with major market fluctuations and a rapidly evolving macroeconomic situation. Amid this dynamic environment, the Russian smart device market in Q1 2020 saw a number of notable trends.

In particular, according to our analysis currency volatility was one of the main driving factors shaping the market. Against the backdrop of a weakening ruble, we estimate the Russian smartphone market grew around 13% year-over-year in Q1 to reach 120.4 billion rubles. This surge is likely explained by Russian consumers rushing to snatch up phones-particularly higher-end devices-before expected price increases could take effect. Driven by this one-off factor, unit sales of smartphones grew 8.7% year-over-year in the quarter, reaching 7.1 million devices, with the average ticket price up about 4% to 16,936 rubles, according to MTS's analysis.

The most striking dynamics were seen in the premium segment, with unit sales of phones priced over 100,000 rubles roughly doubling year-over-year, based on our analysis. In particular, sales of the Apple iPhone 11 Pro and 11 Pro Max boomed as local pricing in Russia became significantly cheaper than in many other markets. Beyond the premium segment, mid-range devices priced above 40,000 rubles also saw unit sales up 27.7% year-over-year. At the same time, according to our analysis the most popular smartphones remained budget models priced below 20,000 rubles, representing some 80% of devices sold in Q1.

These dynamics were also reflected in evolving consumer credit preferences. In the first half of March we estimate roughly 60% of high-end smartphones were purchased with POS financing, while in the second half of the month that decreased to 30%, with more than 70% of devices bought with cash.

Finally, as consumers began to stay home for longer, they increasingly switched over to online channels for retail purchases. In total, we estimate ecommerce sales of smartphones in Russia were up 34% year-over-year in ruble terms in the quarter, with MTS seeing a nearly 90% increase in unit terms via our online retail store. To help our customers adapt to the current situation, MTS now offers contactless delivery for smartphones, as well as increased cleaning protocols in our retail stores that continue to operate.

Estimated smartphone market share of top brands in Q1 2020 - in rubles:

  1. Apple - 34.1%
  2. Samsung - 24.8%
  3. Honor - 17.3%
  4. Xiaomi - 12.6%
  5. Huawei - 4.4%

Estimated smartphone market share in units of top brands in Q1 2020 - in units:

  1. Honor - 26.2%
  2. Samsung - 23.1%
  3. Xiaomi - 18.3%
  4. Apple - 10.1%
  5. Huawei - 6.3%

Most popular models overall: Honor 8A, Samsung Galaxy A10, Samsung Galaxy A50, Honor 7A, and Honor 10i.

Most popular premium models (RUB 40,000+): iPhone 11, iPhone XR, and iPhone 8.

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MTS - Mobile TeleSystems OJSC published this content on 16 April 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 April 2020 10:05:06 UTC