J’son & Partners Consulting presents brief results of the research: Russian Smartphone Market, Results of 2014.
Smartphone Sales in Russia and in the World
In 2014, Russian mobile terminal market (total sales of smartphones and mobile phones) appeared to be the highest in history – 43 mln sold devices. Smartphones occupied around 61% of total sales or 26 mln devices with 1.5 growth rate in 2014 vs 2013.
The share of Russian smartphone market is estimated of 2% in the total global sales in 2014.
Results of 2014: Russian Smartphones Market growth rate was + 47% (pcs.) and formidably overstepped global rate (+26%).
Smartphones Market: General Description
Increasing popularity of mobile Internet access and decreasing prices on devices facilitated sales growth in Russia.
Smartphone Market in Russia increased not so considerable in $ during the year – for 20% and has reached 216 bln RUB at the end of 2014.
Highlights: average smartphone price decreased for 19% and was 8.3 thousand RUB in 2014. The price is falling due to the growth of “budgeted” segment. Almost each fifth sold smartphone in 2014 cost 3 thousand RUB.
It is important to pay attention not only on the growth of budgeted segment but also on decreasing share of “expensive” smartphones. Share of price range “Over 15 thousand RUB” decreased for 6 p.p. and was 13% in 2014.
Smartphones Market Structure by Operational Systems
According to J’son & Partners Consulting’s estimations, Android share was over 86% in 2014 of all sold smartphones in Russia. The company considers that Windows Phone system’s position (by Google) is weak and due to the increasing prices on iOS devices, it’s hard to forecast their future on the Russian market.
Technology Trends on Russian Smartphone Market
4.3 inches – is an average display size of smartphone sold in Russia in 2014.
There is a continuous tendency on the smartphones market – constant increase of display size and smartphones convert into hybrid devices, which can be used as tablets. The share of smartphones with 5 or more inches display size is growing: in 2013 they had only 7% of total sales, but in 2014 this number increased till 18% in 2014.
Support of 2 and more SIM cards
J’son & Partners Consulting’s estimations: total smartphones sales with 2 and more SIM cards in 2014 was 60%.
Using the increasing popularity of multi-SIM cards smartphones, leading manufacturers have started to launch not only budgeted models with 2 SIM-cards, but also flagship devices in 2 versions – with and without support of such technology.
Share of LTE smartphones doesn’t grow that fast. The key reason is the difference in price. According to J’son & Partners Consulting, average retail LTE smartphone price, sold in 2014, was around 22 thousand RUB, same indicator on the total smartphones market was 8,3 thousand RUB.
Russian Smartpones Market Forecast
Macroeconomic situation in the country and currency depreciation will obviously have an impact on Russian Smartphones Market. Major manufacturers had already increased prices in rubles. Meanwhile, there is a wide range of “budgeted” smartphones, which do not trailing more expensive models by technical characteristics. J’son & Partners Consulting considers that such devices can replace more expensive analogs for customers, as a result, we do not expect smartphones sales decrease in pcs. in Russia in 2015.
The following can be expected, according to J’son & Partners Consulting’s experts opinion:
Decreasing sales of premium-segment smartphones;
Increasing variety and popularity of low-cost smartphones;
Changes in smartphones market structure by manufacturers, further improvement of Chinese manufacturers on the market;
Strengthened position of cellular operators on smartphones sales market.
Population will not refuse from smartphones purchases despite the difficult economic situation, but will seek an opportunity to save on it.
J’son & Partners Consulting: by 2019, total smartphones sales volume will be over 42.1 mln devices in Russia, with 93% share of smartphones in total sales of mobile terminals.
Detailed Results of the Research are Presented in the Full Version of the Report: Russian Smartphones Market, 2012 – 2019
1. Russian Mobile Phones and Smartphones Market, Key Indicators
1.1. Market Structure – Mobile Phones and Smartphones, $ and pcs.
1.1.1. Mobile terminals market volume, pcs., 2012 – 2014 (quarterly dynamics)
1.1.2. Mobile terminals market volume, $, 2012 – 2014 (quarterly dynamics)
1.1.3. Mobile terminals sales structure: smartphones and mobile phones, pcs., 2012 – 2014 (quarterly dynamics)
1.1.4. Mobile terminals sales structure: smartphones and mobile phones, $, 2012 – 2014 (quarterly dynamics)
1.1.5. Smartphones market structure by operational systems, % of sales in pcs., (quarterly dynamics)
1.2. Average Retail Price: Mobile Terminal, Market Structure by Price Segments
1.2.1. Average mobile terminal retail price, quarterly dynamics (USD and RUB), 2012 – 2014 quarterly dynamics
1.2.2. Average smartphones retail price, quarterly dynamics in Russia, USD, 2012 – 1Q2014 (quarterly dynamics)
1.2.3. Mobile terminals market structure by price segments, % of sales in pcs., 2012 (quarterly dynamics)
1.2.4. Smartphones market structure by price segments, % of sales in pcs., 2012 (quarterly dynamics)
1.2.5. Mobile phones market structure by price segments, % of sales in pcs., 2012 (quarterly dynamics)
2. Mobile Terminals Key Manufacturers
2.1. Mobile terminals market structure dynamics by manufacturers, % of sales in pcs., 2012 – 2014
2.2. Mobile terminals market structure dynamics by manufacturers, % of sales in $, 2012 – 2014
2.3. Smartphones structure dynamics by manufacturers, % of sales in pcs., 2012 – 2014 (quarterly dynamics)
2.5. Short manufacturers’ profiles
Producers of branded operators mobile terminals Mobile terminals sales volume, $ and pcs., 4Q2014
Smartphones sales volume, $ and pcs., 4Q2014
Mobile phone and Smartphone average retail prices, 4Q2014
Phones sales structure by price segments, 4Q2014
ТОП-5 mobile terminals models in the company’s sales, 4Q2014
ТОП-5 smartphones models in the company’s sales, 4Q2014
Mobile terminals sales structure by federal regions, models in the company’s sales, 4Q2014
3. Average Smartphone Functionality Offered in Russia, 2012 – 2014
3.1. Support of 2 or more SIM-cards
Smartphones (2 or more SIM-cards) market structure, $ and pcs.
Smartphones (2 or more SIM-cards) market structure by manufacturers, pcs.
Average Smartphones (2 or more SIM-cards) retail price. Smartphones (2 or more SIM-cards) market structure by price segments
3.2. LTE Support
Smartphones with/without LTE market structure, $ and pcs.
LTE Smartphones market structure by manufacturers, pcs.
Average LTE-smartphone retail price. LTE-smartphones market structure by price segments
3.3. NFC Support
Smartphones with/without NFC market structure, $ and pcs.
NFC Smartphones market structure by manufacturers, pcs.
Average NFC-smartphone retail price. NFC-smartphones market structure by price segments
4. Forecasts and Tendencies, 2015 – 2019
4.1. Mobile terminals market forecast, pcs., 2015 – 2019
4.2. Mobile terminals market forecast, $ and pcs., 2015 – 2019
4.3. Smartphones sales forecast, $ and pcs., 2015 – 2019
4.4. Smartphones (with different technologies) sales forecast, 2015 – 2019
Smartphones with two or more SIM-cards
This Information Note is Prepared by J’son & Partners Consulting, We strive to provide factual and prognostic data that fully reflect the situation and are available to us before issuing the material. J’son & Partners Consulting reserves the right to revise the data after publication of new official information by the market players.