Samsung Has No Decision To Return To Russian Market

Samsung Has No Decision To Return To Russian Market

Just lately, Reuters mentioned that although Samsung had been anticipated to return to the Russian market quickly, there is no such thing as a remaining choice on this event.

A few days in the past, Russian journal “Izvestia” reported {that a} supply near Samsung mentioned the South Korean firm would possibly restart gross sales in Russia in October. Plus, in response to the supply, Samsung would restart its official on-line retailer and restore tools provides to retailers.

Because of the battle between Russia and Ukraine, Samsung Electronics stopped supplying to Russia in early March. The corporate clearly mentioned that its choice was primarily based on geopolitical causes. Though Russia accounts for lower than 5% of Samsung’s international smartphone gross sales, Counterpoint famous that as of the fourth quarter of 2021, Samsung was Russia’s largest smartphone provider, with a 30% market share. On the similar time, Xiaomi and Apple accounted for 23% and 13% of the market share, respectively.

Nonetheless, Counterpoint information exhibits that in 2021, Chinese language OEMs will lead the Russian market with 44% of the market share. Russian enterprise newspaper Kommersant reported that the nation’s smartphone imports fell by 38% within the first half of 2022.

Russian Market Is Nonetheless Alive Due To Parallel Import Program

To take care of imports of client items, Russia’s parliament handed laws in June known as the “parallel import” scheme. In easy phrases, home retailers can import every little thing from smartphones to uncooked materials items with out the approval of the trademark proprietor.

As an example, earlier this month, Russian Business and Commerce Minister Denis Manturov claimed that Apple’s newest iPhone 14 can be a part of the parallel import program.

Nonetheless, client items offered in Russia underneath this system are liable to a 20% enhance in gross sales costs.

The newest stories from Reuters present that China’s share of smartphone gross sales in Russia rose steadily. From 50% within the first quarter of 2021, they reached 70% in June. Now, there are new leaders, comparable to Xiaomi, Realme, and Honor. Analysts suppose that Chinese language client electronics manufacturers may seize 90% of the Russian market. In impact, they are going to create their very own ecosystems and additional strengthen their positions.