Huawei Topples Apple to Become the Second Largest Brand in Russia During Q2 2018

Huawei was also the fastest growing brand (240%) followed by Xiaomi (135%) and Bright and Quick (104%). Smartphone sales grew a healthy 25% YoY driven by Chinese brands

New Delhi, Hong Kong, Seoul, London, Beijing, San Diego, Buenos Aires – September 12th, 2018

According to the latest research from Counterpoint’s Market Pulse service, Russia smartphone sales grew a healthy 25% YoY during Q2 2018, the highest second-quarter growth rate since it was hit by the financial crisis in 2014. Growth was driven by strong consumer spending, new launches and expansion of trade-in offers and discounts by distributors, particularly in the run-up to and during the FIFA World Cup Finals that took place in Russia in June and July.

Commenting on the overall market, Anshika Jain, Research Analyst at Counterpoint Research said, “The average selling price of smartphones in Russia is increasing due to users upgrading from entry-level to mid-tier smartphones. OEMs, especially Chinese brands are launching more devices in the mid segment and attracting users through various offers like trade-ins, data bundling and higher memory capacity options for similar SKUs. As a result of this, Chinese brands have managed to gain market share and now capture almost 41% of the total smartphone market. The share of Chinese brands has grown over the period and they have gained share in the important $100-$199 price segment, driven by their competitive device offerings.”

Commenting on brand competition, Tarun Pathak, Associate Director at Counterpoint Research said, “Huawei became the fastest growing brand in Russia during the quarter. It surpassed Apple to become the second largest brand now. The rise of Huawei was due to strong retail tie-ups as well as recent partnerships with local ecosystem players like Yandex which helped it to expand its footprint in Russia. Additionally, Chinese brands are now ramping up their online presence across major e-commerce platforms to drive sales.”

Market Summary:

  • The top five smartphone brands captured 84% of the total smartphone market in terms of volume.
  • Samsung led the overall smartphone market with 30% market share during Q2 2018. Samsung’s older Galaxy J series continued to do well along with a good response to its newly launched Galaxy J2 (2018).
  • Huawei was the fastest growing brand during the quarter with an annual growth of 240% followed by Xiaomi (135%) and Bright and Quick (104%).
  • Huawei’s growth is driven by its balanced portfolio range along with multiple partnerships with retailers which are helping promote its flagship devices range in the Russian market. Honor 9 Lite was the top selling device in Q2 2018.
  • Xiaomi’s share more than doubled in Q2 2018 due to strong growth in the $100-$150 price segment driven by demand for its Redmi 5 and Note 5 series.
  • Bright and Quick is the only Russian brand that is giving competition to Chinese and Global brands because of its strong portfolio in the sub $100 segment.
  • Apple’s share remained flat YoY with iPhone 6 still being the top model for the brand. Russia continues to be an important market for Apple. However, going forward the uncertainty of trade disputes and sanctions imposed by the USA, can lead to retaliatory measures from Russia, potentially impacting Apple’s growth.
  • The $100-$199 price segment captured the highest ever share of 36%, reflecting a growth of 80% YoY in Q2 2018.
  • The market share of Chinese brands reached its highest ever level in Q2 2018, capturing around 41% of the market.
  • Local players are mainly targeting the sub $99 segment. Better offerings from competitors in the upper-price bands is the major reason that local players have remained in the entry-level segment.
  • LTE capable smartphones captured 89% of the smartphone market during Q2 2018 as compared to 80% in Q2 2017.

 

The comprehensive and in-depth Q2 2018 Market Pulse is available for subscribing clients. Please feel free to contact us at press(at)counterpointresearch.com for further questions regarding our in-depth latest research, insights or press enquiries.

Analyst Contacts:

Tarun Pathak
+91 9971213665
[email protected]

 

Anshika Jain

+91 9873903650
[email protected]


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