- The share of online smartphone sales reached 34% during Q3 2020, breaking the previous quarter’s record.
- Huawei led online channel sales with 27.8% market share.
- M.Video-Eldorado led online platform sales, followed by Svyaznoy and MTS.
London, San Diego, Buenos Aires, New Delhi, Hong Kong, Beijing, Seoul – November 27, 2020
Smartphone sales grew 5% YoY while online smartphone sales saw more than two-fold growth in Russia in Q3 2020, according to the latest research by Counterpoint Research Model Sales Tracker. The share of online smartphone sales reached 34% during Q3 2020, breaking the previous quarter’s record of 32%. Social distancing, tightening of restrictions by the government and more offerings from entertainment players created momentum for a long-term shift from offline to online channels. Furthermore, less spending on vacation helped people upgrade their devices.
Commenting on the market dynamics, Associate Director Tarun Pathak said, “Again, M.Video-Eldorado led the online smartphone platform market share during this quarter. However, the market share of M.Video-Eldorado has decreased from 35% in Q2 2020 to 33% in Q3 2020. The other online platforms, like Beeline, Megafon and Citilink, improved their market share during this quarter due to the presence of more popular smartphone models and the availability of some smaller brands like Philips, Digma, Bright & Quick, Haier and Ark. Promotional campaigns like a gift of 99 rubles per month in the ‘Super’ package of MTS TV services on any purchase till August 31, 2020, additional cashback on first purchase, and availability of more smartphone models on the online platform helped MTS increase its market share during the quarter.”
Pathak added, “The average smartphone price dropped by 5% YoY to reach $224 in Q3 2020. In terms of revenue, Samsung is leading both offline and online platforms, followed by Apple and Huawei. The Samsung Galaxy A51, Samsung Galaxy A31 and Apple iPhone 11 are the top-selling smartphones on online platforms while the Samsung Galaxy A51, Redmi Note 8T and Samsung Galaxy A31 are the best-selling models on offline platforms. Some small brands like Black Fox and Senseit have joined online platforms while brands like Dexp and Ginzzu are still relying on offline platforms.”
Commenting on brand performance, Research Associate Soumen Mandal said, “Samsung regained its No. 1 position in the Russian smartphone market by surpassing Huawei during this quarter. Supply shortages affected Huawei’s overall sales, but it still managed to lead online channel sales with 27.8% market share. After the restoration of normalcy in retail store operations, Samsung went back to depending on offline sales, which caused a decrease in its market share for online sales. Honor had the highest share of online sales of 5G models, driven by the Honor 30 series where cash coupons are being offered to push sales. Xiaomi overtook Samsung to hold the second position in online smartphone sales. Among the top 10 online smartphone models, five are from Xiaomi. The Redmi Note 8 Pro, Redmi 8A and Redmi Note 9 are the top three models from Xiaomi on online platforms. For the first time, realme has cracked into top five online smartphone brands, supported by the launch of new models like the realme C11, realme C15 and realme X3 Super Zoom, and good performance of existing models like the realme 6 Pro and realme C3.”
Mandal added, “The smartphone market is changing dynamically during 2020 due to COVID-19 and some political decisions. Xiaomi has started opening retails stores, which is expected to further increase its market share. The flagship models from Apple and Samsung are also getting attention in Russia. Credit and trade-in programs are making flagship models more affordable. However, the Chinese brands are strengthening their position in the lower and middle price segments.”
Counterpoint Technology Market Research is a global research firm specializing in Technology products in the TMT industry. It services major technology firms and financial firms with a mix of monthly reports, customized projects and detailed analysis of the mobile and technology markets. Its key analysts are experts in the industry with an average tenure of 13 years in the high-tech industry.