Analytical report ( full version)
February 2017
Market Review
Company J'son& PartnersConsultingpresents the main results of the study " Russian market smartphones. Results of 2016."
According to J’son & Partners Consulting estimates, in 2016 the volume of the Russian smartphone market in physical terms amounted to 26.4 million devices. Compared to 2015, the market grew by 4.4%, compared to 2014 - by 1%. Thus, we can say that the smartphone market is gradually beginning to recover from the consequences of the ruble devaluation, and users are beginning to get used to new realities and adapt to new prices for devices.
Share of smartphones in total sales of mobile terminals (total sales mobile phones and smartphones) in 2016 amounted to about 71% in volume terms, which is 5 percentage points higher than the year before.
The rise in smartphone sales continues to impact many adjacent markets, including the feature phone market. According to J’son & Partners Consulting, the Russian mobile phone market continued to decline in 2016 and amounted to 10.8 million devices. Nevertheless push-button phones still occupy about a third of the mobile terminal market. They are still in demand among visitors, pensioners, children, and also as a second handset among smartphone users.
Along with sales in physical terms, the average cost of these devices also decreases. According to J’son & Partners Consulting estimates, in 2016 it decreased by 6% compared to 2015 and amounted to 1.7 thousand rubles.
In 2016, every second smartphone sold supported LTE high-speed Internet technology. Sales of smartphones with an LTE module more than doubled in 2016 compared to 2015. The main drivers of market growth are an increase in the range of LTE devices, a decrease in their average cost, as well as an increased demand for devices in the middle and premium price segment.
The average retail price of smartphones increased in 2016 by 22% compared to last year and amounted to 12.1 thousand rubles. This is the highest average retail price for a smartphone since 2009. The increase in cost compared to last year was influenced by the growing demand for devices in the price category “above 15 thousand rubles”, which, in turn, was facilitated by an increase in sales of devices purchased on credit.
The average display diagonal of a smartphone sold in Russia in 2016 was 4.6 inches. In addition, the share of smartphones with a diagonal of 5 inches or more increased from 31% in 2015 to 46% in 2016. The growth in sales of smartphones with large display diagonals is influencing the increase in the use of video content, TV and applications.
The trend, which began even before the economic crisis, continued after the devaluation of the ruble. A number of popular manufacturers during the formation of the Russian smartphone market - Sony, HTC, Nokia/Microsoft - at the end of 2016, together occupied only 5% of the smartphone market in physical terms. Their place is taken by Chinese companies selling devices at more attractive prices. In 2016, according to J’son & Partners Consulting, Chinese companies occupy half of the positions in the top ten best-selling manufacturers in Russia.
The average price of a smartphone sold in MegaFon branded stores in 2016 increased by 38.5%, to 7,501 rubles compared to 5,390 rubles in 2015. This is due to the fact that consumers have become accustomed to the economic situation and are gradually adapting to its conditions. Purchasing activity is increasing; last year, customers bought more expensive smartphones from MegaFon Retail. We see a redistribution of the market from budget devices (bestsellers of 2015) to devices in the middle and high price segment. As a rule, devices costing 10 thousand rubles or more have high performance, a large and high-quality screen and LTE support.
Judging by the list of top sellers, the buyer still saves on the brand, preferring inexpensive products, but no longer skimps on the functionality of the devices, wanting to use multifunctional and productive gadgets.
One of the significant trends of the past year was the growth in sales of LTE smartphones. The growth in sales of smartphones with LTE in the last months of 2016 will increase the volume of Internet traffic in the 1st-2nd quarters of 2017, which, we hope, will be transformed into an increase in MegaFon's revenue due to the transition of customers to package rates with a large volume of services.
- How do you assess the prospects for the development of the smartphone market in 2017? What is the future of conventional mobile phones? Will they be in demand on the market in the future or will they completely disappear from sales over time?
According to the results of 9 months of 2016, in MegaFon Retail stores, about 62% of the total number of phones sold were smartphones. There is potential for increased penetration in the coming years, so we are confident that in 2017 the penetration of smartphones into MegaFon’s subscriber base will continue to grow. Number of digital customers actively pursuing opportunities mobile internet and applications will also increase. At the same time, push-button phones, although being replaced by smartphones, will remain popular among certain categories of subscribers (primarily children, the elderly). Over time, their number will decrease, but they will not completely leave the market.
- What trends do you highlight in the Russian smartphone market in 2016?
According to Svyaznoy, the smartphone market in Russia in 2016 increased both in units and in rubles.
Several factors contributed to growth in 2016. The smartphone is becoming an increasingly versatile device. With the development of technology, one gadget can combine more and more useful functions. The smartphone partially replaces a digital camera, laptop, and personal PC. Phablets (smartphones with a diagonal of more than 5 inches), due to their optimal size for the buyer, successfully compete with tablets and e-readers.
The positive dynamics in the smartphone segment was also influenced by the increase in the availability of credit products compared to 2015. The availability of a wide selection of credit products, especially installment programs available in the showrooms of large retailers, allows buyers to reduce the burden on their own budget and distribute it over a long period.
Among the factors for the growth of smartphone sales in 2016, one can also highlight the pent-up demand of 2015 and the ongoing process of consumers replacing conventional mobile phones with smartphones. Let us recall that during the boom period of October-December 2014, the demand for smartphones increased significantly - many customers, fearing rising prices for electronics, bought themselves a smart phone during the period of jump in rates.
The market in rubles in 2016 increased more than in units. The higher dynamics are due to growing demand for gadgets in high price segments, in particular the entire iPhone line, which is sold in all categories for over 20 thousand rubles. The popularity of the iPhone was also boosted by the release of new products in October 2016.
- How do you assess the prospects for the development of the smartphone market in 2017?
In 2017, we expect smartphones to continue to be key communication devices (the “first screen”) and to continue to influence sales of other personal electronics categories. According to our forecasts, unit sales of smartphones in Russia in 2017 will at least remain at the 2016 level.
The continued popularity of smartphones will drive the growth of certain categories of personal electronics (for example, smart-wearables) and will continue to negatively affect sales in other segments (for example, tablets, digital cameras, e-books and etc.).
- What is the future of conventional mobile phones? Will they be in demand on the market in the future or will they completely disappear from sales over time?
In our opinion, regular mobile phones still have their own audience and remain in demand among a number of buyers. This is due, firstly, to the fact that in our country there remains a fairly large number of people for whom the basic functionality of a telephone - calls and SMS - is sufficient for everyday needs. Secondly, the price of a push-button device is lower than a smartphone, and for a number of buyers the cost is a decisive advantage.
In the near future, push-button phones will not leave the market, since there are several categories of buyers who prefer the simplest devices. These are mainly older people.
The smartphone market is beginning to gradually recover. It is obvious that the Russian market cell phones and smartphones is steadily stabilizing, primarily due to the growth in smartphone sales. However, the buyer has not yet recovered from the long crisis, and a rational approach to the consumer basket continues to dominate, primarily through choosing the most advantageous offer in terms of price/quality ratio and purchasing devices on credit.
Smartphones are showing positive dynamics in sales numbers. This trend is due to an increase in the share of devices purchased on credit. If last year the banks' policy regarding consumer lending was restrained and banks were reluctant to issue borrowed funds to the population, then in 2016 their outlook changed, and the number of loans increased noticeably. The loyal policy of banks has allowed the population to purchase more expensive phone models, which provokes a continued increase in the average price. Retailers, in turn, offer customers a large number of credit products with maximum benefits. In particular, interest-free installments served as a strong impetus for the entire market, which largely caused an increase in the average price of a smartphone.
We see that people are increasingly buying more expensive smartphone models, so average price the market has grown. A smartphone, which only yesterday cost several thousand more, has become available at a more attractive price, which has allowed the population to purchase premium devices. Thus, the April price reduction pumped up almost all segments, but especially premium smartphones, starting from 20 thousand rubles.
The economic situation had the least impact on the cell phone segment (devices without an OS). The demand for devices has already reached saturation, and even the stabilization of the economic situation does not allow the cell phone market to return to positive dynamics.
Smartphones have long won the status of “everyday goods” and continue to cannibalize other adjacent markets, which were falling before the crisis and continue to decline to this day.
We expect that the cell phone and smartphone market will continue to recover in 2017: its numbers will vary within the same range as last year or with very slight positive increases.
Among the trends that are least influenced by the economic factor, we can note the continued growth in popularity of smartphones with a display diagonal of more than 5 inches (phablets), as well as the increasing popularity of gadgets with LTE support.
The newsletter was prepared by J"son & Partners Consulting. We make every effort to provide factual and forecast data that fully reflects the situation and is available at the time of publication of the material. J"son & Partners Consulting reserves the right to revise the data after publication in individual players new official information.
Copyright 2017, J'son & Partners Consulting. The media can use the text, graphics and data contained in this market review only using a link to the source of information - J’son & Partners Consulting or with an active link to the portal
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1. Russian market of mobile phones and smartphones, key indicators
1.1. Market volume of mobile phones and smartphones, in physical and monetary terms
1.1.1. Market volume of mobile terminals in physical terms, 2014 - 2016 (quarterly dynamics)
1.1.2. Market volume of mobile terminals in monetary terms, 2014 - 2016 (quarterly dynamics)
1.1.3. Sales structure of mobile terminals: smartphones and mobile phones, in physical terms, 2014 - 2016. (quarterly dynamics)
1.1.4. Structure of sales of mobile terminals: smartphones and mobile phones, in monetary terms, 2014 - 2016 (quarterly dynamics)
1.2. Average retail price of a mobile terminal, market structure by price segments
1.2.1. Quarterly dynamics of the average retail price of a mobile terminal, 2014 -2016. (quarterly dynamics)
1.2.2. Quarterly dynamics of the average retail price of a smartphone, 2014 - 2016. (quarterly dynamics)
1.2.3. Structure of the mobile terminals market by price segments, % of sales in physical terms, 2014 - 2016. (quarterly dynamics)
1.2.4. Structure of the smartphone market by price segments, % of sales in physical terms, 2014 - 2016. (quarterly dynamics)
1.2.5. Structure of the mobile phone market by price segments, % of sales in physical terms, 2014 - 2016 (quarterly dynamics)
2. Major manufacturers of mobile terminals
2.1. Dynamics of the mobile phone market structure by manufacturer, % of sales in physical terms, 2014 - 2016. (quarterly dynamics)
2.2. Dynamics of the mobile phone market structure by manufacturer, % of sales in monetary terms, 2014 - 2016. (quarterly dynamics)
2.3. Dynamics of the structure of smartphones by manufacturer, % of sales in physical terms, 2014 - 2016. (quarterly dynamics)
2.4. Dynamics of the structure of smartphones by manufacturer, % of sales in monetary terms, 2014 - 2016. (quarterly dynamics)
2.5. Brief Profiles of Manufacturers
3. Average functionality of a smartphone sold in Russia, 2014 - 2016.
3.1. Smartphone market structure by operating systems,% of sales in physical terms (quarterly dynamics)
3.2. Structure of the smartphone market by operating systems, % of sales in monetary terms (quarterly dynamics)
3.3. Supports two or more SIM cards
3.3.1. Market structure of smartphones with support for two SIM cards / without support for two SIM cards in physical and monetary terms
3.3.2. Structure of the market for smartphones with support for two SIM cards by manufacturers in volume terms
3.3.3. Average retail price of smartphones with dual SIM support. Market structure of dual-SIM smartphones by price segments
3.4. LTE support
3.4.1. Market structure of smartphones with LTE / without LTE in physical and monetary terms
3.4.2. Structure of the LTE smartphone market by manufacturer in physical terms
3.4.3. Average retail price of an LTE smartphone. LTE smartphone market structure by price segments
3.5. NFC support
3.5.1. Market structure of smartphones with NFC / without NFC in physical and monetary terms
3.5.2. Structure of the market for smartphones with NFC by manufacturer in physical terms
3.5.3. Average retail price of an NFC smartphone. NFC smartphone market structure by price segments
3.6. Smartphone market structure by display diagonal
4. Forecasts and trends, 2017 - 2021
4.1. Forecast of the mobile terminal market in physical terms, 2017 - 2021.
4.2. Forecast of the mobile terminal market in monetary terms, 2017 - 2021.
4.3. Forecast of the share of smartphone sales in physical and monetary terms, 2017 - 2021.
The best phone brand always produces high-quality equipment. But how to identify such a manufacturer? In a sea of huge selection of the most unusual gadgets, it is difficult to choose a phone that would meet all individual requirements. The 2018 rating, compiled according to the Mark.guru portal, gives a brief overview of each manufacturer.
Some people value their phones for their performance, some prefer models that are mini-computers, and others for their quality and long service life. In each case, it must be remembered that there are selection criteria:
The ranking of smartphone manufacturers opens, of course, with Apple. In the first place is the brand that dictates fashion in the field high technology. For several years in a row, it has received the palm in terms of the number of units sold in Russia and second place in sales volumes throughout the world.
What distinguishes the brand is the stylishness of the phones and the simplicity of the main working system. In addition, the gadgets are different:
All this makes the brand a kind of standard against which all others are measured.
As for the budget segment, the company can offer the iPhone 4S. Slightly higher in cost are the 5C and 5S assemblies. Their diagonal is wider, but the picture quality remains unchanged. Firstly, the differences between the models relate to the materials of manufacture and the case frame. Secondly, advanced processors and the presence of a “home” button on the panel, which scans a fingerprint. The company is in favor of the best and latest developments in operational support, but does not participate in the race to modernize the permit.
The 6th and 7th generation flagships occupy the segment of expensive models and are distinguished by larger screens and support for 4k quality.
And the main difference between these phones is the absence of a USB connector, instead there is a Lightning connector.
The iPhone 8 and iPhone 10 have already been released.
Apple iPhone 8 prices:
Apple iPhone 10 prices:
Samsung occupies a leadership position in several indicators at once - the capabilities of smartphones, the number of families and model lines.
The most economical models are represented by the Ace 4 and Core 2 lines. A familiar body with a single button that returns to the main page and good camera performance are the main differences between these phones.
In addition, regardless of the model, powerful quality indicators for the camera are a fundamental point for the company’s developers.
The mid-price segment includes the Galaxy A3/A5, but big differences they don't have.
Luxury models are S and Note. They have excellent quality displays and a powerful operating assembly, the characteristics of which are even slightly redundant. The only drawback of the brand is the Pentile matrix system. Note models are designed for a stylus, so the diagonal is expanded to 5.7 inches. However, according to reviews, the fifth row of models is not popular.
Galaxy are equipped with a 5.1-inch screen and are capable of playing full HD. The S6 Edge+ has a curved screen and is generally great, but only until you start actively using the phone: viewing photos and turning on the full screen when playing videos is difficult.
Prices Samsung Galaxy S8:
Although Sony offers an extensive prayer range, its market sales are only decreasing every year. The brand is trying to return attention to its developments by modernizing new lines of smartphones.
The Xperia Z5 Premium model, for example, has 4K playback and support on a 5.5-inch diagonal. But this indicator only affected photos and videos; otherwise, full HD is included.
Due to the fact that the company has its own sensor and optics department, all Z5 models are equipped with 23-megapixel cameras and powerful zooms.
The middle and budget segment of models is at a high level, but it is premium class models that contribute a significant share of budget turnover. Another feature from the company is that the models have a dust-repellent coating and water protection.
Prices for Sony Xperia XA1 Dual:
The Korean company LG is distinguished by the fact that it tries to use the most Newest technologies to budget models, albeit in a lightweight version. The best lg smartphones have curved screens and panel buttons located on the back. There are plenty to choose from - Magna, Spirit and Leon. The Max model range received a unique flash with a glow in different directions.
In the middle price segment there are models with an all-metal body - a very decent edging that protects the screen from damage.
The G3 and G4 phone lines, although they provide little autonomy and heating, are loved by buyers. The Flex 2 is a truly portable device - its compactness and long battery life are its main advantages. But the temperature increase when loading the system remained.
Price range - from 4840 to 41700 rubles.
Prices for LG V30+:
The company, which was founded just a few years ago, has already established itself well in the global market, ranking third in sales last year.
The main advantage of the company is the budget price for high quality, comparable to Samsung and iPhone.
In order to keep the cost level low for the entire line of smartphones, the company began selling only through its own website. The excitement is also fueled by a marketing ploy - operating system updates are released every week for the unique Mi line.
The best model from the company with excellent characteristics is the Xiaomi Mi Note Pro. Quad HD display, fast performance of a 4-core processor and 3 GB random access memory- only minor indicators. The company is developing confidently and proof of this is Xiaomi flagship Mi Note 2, which has 8 GB of RAM and 16 GB of software memory. According to leading experts, Note 2 is the main competitor to Samsung Note 5 and iPhone 6s+.
Price range – 5400 to 25490 rubles.
Prices for Xiaomi Redmi 5 Plus 4/64GB:
Thanks to the best Huawei smartphones, the company ranked 3rd in terms of units sold last year in the global market. It doesn’t have much choice on the domestic platform, but it is included in the ranking of the best manufacturers and smartphones produced.
In the economy class, Huawei presents the Ascend Y series - very productive, standard models. The mid-segment includes Mate S models, although they are based on outdated working platform modules.
Nexus under the designation 6P is characterized by high performance and is among the top best smartphones by quality.
Distinctive features of the brand in the high price segment:
Price range: 6950 – 42450 rubles.
Prices for Huawei P20 Lite:
ZTE company produces high-quality gadgets. Each new model is designated by the slogan “ best phone", but, of course, has both advantages and disadvantages.
The flagships from ZTE are equipped with a powerful processor, a reliable and large high-definition display, and a camera with the ability to record high-definition video.
Phones from ZTE are especially popular among young people, as they have a relatively low cost and excellent technical characteristics.
Price range – 2480 rubles to 16500 rubles.
Prices ZTE Blade A6:
Lenovo has long been known to Russian buyers. Phones have gradually gained popularity and are no longer associated with cheap Chinese products. By purchasing the rights to the Motorola brand, the company finally secured its place in the market.
The inexpensive niche is represented by A-series smartphones, which have standard but powerful capabilities.
The S and P series occupy the middle and high price classes, respectively, you can choose from endless models - huge diagonals, HD video playback, high-performance processor and large battery capacity.
Some phone models are already optimized for selfies and are as autonomous as possible.
Price range – 4200 to 25300 rubles.
Lenovo Phab 2 Pro prices:
An Indian brand that appeared on the domestic market quite recently, but has already proven itself well, which is why it is included in the rating of smartphones and represents one of the world's electronics manufacturers.
Phones from the company are distinguished by a design that is resistant to damage, high quality software system and low cost.
The Quad Dual and Fire lines have standard performance indicators. Such smartphones are perfect for gaming, video recording, and long work. Memory and built-in functionality allows for caching and updating software.
What differentiates the brand is its design. Many models resemble small blocks in shape and are quite compact. In general, the brand can be associated with quality, low cost and long service life. However, you cannot get top-notch processing speed and high resolution from Micromax models.
Price range – 1990 to 9100 rubles.
Micromax Q465 prices:
HTC has good development prospects. But these are just perspectives. It has a market share of 2%, in particular due to Desire phones and One.
For example, the Desire model range is presented in the economy segment and has only a basic set of functions and average characteristics. The second One series occupies the high price segment. If we compare both lines, we can conclude that they are not particularly different in terms of operational performance, except that the latter have larger amounts of memory and screen sizes.
The One is slightly overpriced, but the positive differences between smartphones and other brands are their almost complete autonomy and exceptional design.
Price range - from 5670 to 60200 rubles.
Prices for HTC U11 128GB:
ASUS is best known for producing laptops and tablets, and recently decided to enter the smartphone niche. For the most part, ASUS is developing the side of performance and processing speed, and the main series of ZenFone smartphones has such advantages as:
It is noteworthy that each phone has its own feature, for example, AR – support for AR and VR technologies, and Ultra – high-definition images and high-quality sound.
Prices ASUS ZenFone 4 Max ZC520KL 16Gb:
In conclusion, it is worth adding that each brand has its own distinctive features. By understanding the main directions of each company, choosing the best smartphone manufacturer will not be difficult.
They are produced by a large number of companies and firms. It is difficult to choose the best one from all the variety. Each manufacturer has its own advantages and disadvantages. In the article “Which company's smartphones are better. 2017. TOP 10 rating” we analyzed customer reviews and selected the best companies that produce smartphones.
The smartphone market developed actively in 2017. The fingerprint sensor and 2 GB of RAM have ceased to surprise anyone.
In terms of smartphone sales, 2017 can be called “the year of Chinese smartphone manufacturers.” Because as many as three Chinese companies have maintained their presence in the top five smartphone manufacturers.
So, here is a list of the 10 largest and best smartphone companies in the world.
Samsung is a world-famous brand of Korean technology.
Every year the company conquered more and more new heights, improving and gaining worldwide recognition by producing products of ever higher quality.
Samsung produces a large number of products, not just smartphones. She releases washing machines, laptops, TVs and many other products.
Today Samsung Electronics is an innovator in the world of high technology. Samsung is included in the top twenty largest brands in the world.
Samsung smartphones have a 3-year warranty; the buyer has the opportunity to have the product repaired free of charge at the company's authorized service centers.
Today the company occupies about 21% of the entire global smartphone market. Well-known models include the Samsung Galaxy S7 Edge, Samsung Galaxy S7 and the recently released Samsung Galaxy S8.
TO merits Samsung smartphones include good battery life, build quality, Android OS, design and performance, and a large selection of models from cheap to premium.
Samsung smartphone rating 2019
Apple Inc.- American company, manufacturer of personal and tablet computers, smartphones. The headquarters is located in California.
Through groundbreaking technology and design, Apple has built a reputation like worship in the electronics industry. The company is number one in the world in terms of market capitalization.
The most popular smartphone is produced under the brand name - iPhone. iPhone 7 and iPhone 6S continue to be the best-selling devices in the world.
Users consider the advantages of iPhones to be: compact size, design, quality, convenience and prestige.
The disadvantages include inflated prices for smartphones and accessories due to the “big” name.
Huawei Technologies Co. Ltd is the largest Chinese telecommunications company. In addition to smartphones, it produces terminals, mobile core networks, software and much more.
The company employs more than 160,000 employees in 175 countries. Huawei annually invests 10% of its revenue in the construction of R&D centers.
The secret of Huawei's success is that we are committed to the customer and focus on their needs, no matter what the cost. Our company operates in 170 countries around the world and has never stopped providing its services despite the most difficult, dangerous living conditions for employees, including the earthquake in Chile in 2010 and the explosion at a nuclear power plant in Japan in 2011
Ren Zhengfei, founder of Huawei
The company began producing smartphones in 2010. Today it occupies almost 10% of the global smartphone market. The most popular models of the brand: Mate 8, P9 and Honor 8.
Users consider the advantages of smartphones: design, cost, high-quality assembly and user-friendly interface
Xiaomi Inc- it's the same Chinese company, founded in 2010.
On August 16, 2010, the company released its first version of MIUI firmware based on Android OS. MIUI versions are certified by Google.
in 2011, Xiaomi released its first phone - the Xiaomi MI1 model. It only cost $300. This was a relatively low price for 2011. Then Xiaomi Mi Two, Xiaomi Mi 3, Mi 4 appeared. And of course the popular Xiaomi Mi 5.
Factors that bring success to a company include:
The company is often called “Chinese apple”
To the advantages Xiaomi smartphones Users cite the camera, design, value for money and performance.