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Apple share of Russian smartphone revenue slips as Samsung's doubles

post #1 of 46
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A report from Russian wireless carrier MTS on Monday reveals that Apple's share of the country's emerging smartphone market revenue slipped during the first quarter of 2012 while Android handset maker Samsung doubled its presence mostly at the expense of former leader Nokia.

Samsung flooded Russia's smartphone market with a bevy of models in quarter one and managed to take a 32.3 percent share of the country's 26.8 billion Rubles, or about $812 million, in overall smartphone revenue, according to MTS estimates (via BGR). The nearly one-third share in sales is more than double the 14.8 percent the South Korean company managed only a year ago.

While Samsung posted huge gains year-over-year, Apple saw a slight dip in profit share from 15.6 percent to 14.9 percent but margins were high as the iPhone accounted for only 5.4 percent of units sold for the three months ending in March. The Cupertino, Calif. company finished the quarter as Russia's number three profit leader behind Nokia as the Finnish handset maker suffered a huge loss and dropped from a market-leading 47.5 percent to 27 percent.

Adoption of feature-rich handset sales in Russia almost doubled from the first quarter of 2011 and the number of users now stands at more than five times that of 2010. At the end of March there were over 2.5 million smartphone users compared to 1.49 million in 2011 and only 582,000 in 2010.

MTS
Source: MTS


In 2011, Nokia handsets accounted for over half of all smartphone sales in the region and stood at a commanding 58.7 percent of all units sold followed by Samsung's 16.2 percent and HTC's 6.6 percent. The Lumia maker's lead disappeared, however, as the company only managed to take 34..5 percent of all unit sales while Samsung boosted its 2011 share of 16.2 percent to 35.7 percent in 2012. Apple, HTC and Sony Ericsson all posted moderate sales increases.

Interestingly, the distribution of smartphone operating systems within the MTS network over the first quarter had the defunct Symbian platform in the lead with 37.8 percent while Android and Bada followed with 35.1 percent and 11.3 percent, respectively. Windows Phone came in fourth with 8.2 percent and Apple's iOS trailed the pack at 7.3 percent.

MTS 2
Source: MTS


Besides the legacy iPhone 3GS Apple has yet to truly enter the low-end handset market and the company's share of emerging markets like Russia is slowly dwindling as competitors offer more appealing options at inexpensive price points.
post #2 of 46
Nice... especially as Samsung's really producing some outstanding smartphones.

See: Entire Galaxy S-series.
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post #3 of 46
Quote:
Originally Posted by AppleInsider View Post


Samsung flooded Russia's smartphone market with a bevy of models in quarter one 

Besides the legacy iPhone 3GS Apple has yet to truly enter the low-end handset market and the company's share of emerging markets like Russia is slowly dwindling as competitors offer more appealing options at inexpensive price points.

 

That says it all. 

 

"Low-end" is right. In a place where Symbian still holds majority share. 

post #4 of 46

OMG!

Time to short AAPL.

Apple's share falls by 5% in a country with a declining population.

post #5 of 46
Quote:
Originally Posted by AppleInsider View Post

Interestingly, the distribution of smartphone operating systems within the MTS network over the first quarter had the defunct Symbian platform in the lead with 37.8 percent while Android and Bada followed with 35.1 percent and 11.3 percent, respectively. Windows Phone came in fourth with 8.2 percent and Apple's iOS trailed the pack at 7.3 percent.
MTS 2
Source: MTS

Besides the legacy iPhone 3GS Apple has yet to truly enter the low-end handset market and the company's share of emerging markets like Russia is slowly dwindling as competitors offer more appealing options at inexpensive price points.

Even assuming that the numbers are accurate (which is questionable since they don't tell you anything about how they're obtained), look at the above chart. Symbian is still 1/3 of smart phones and Android is #2. Blackberry is almost nonexistent.

The title should read "people in Russia buy the cheapest phone they can find".
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post #6 of 46

The report indicated the average smartphone price rose from 4550 to 4650 Rubles (about $140 US).

 

Now we know why they're selling so many phones - they're all cheap. And this isn't opinion or guessing - the average price proves it.

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post #7 of 46
Quote:
Originally Posted by jragosta View Post


Even assuming that the numbers are accurate (which is questionable since they don't tell you anything about how they're obtained), look at the above chart. Symbian is still 1/3 of smart phones and Android is #2. Blackberry is almost nonexistent.
The title should read "people in Russia buy the cheapest phone they can find".

 

For many people in Russia, it's a choice between luxuries like mobile devices, and eating. 

 

http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)_per_capita

 

http://www.eurasiareview.com/27042011-despite-rising-oil-prices-russians-standard-of-living-is-falling-analysis/

 

There you go.  :(

post #8 of 46
Quote:
Originally Posted by AppleInsider View Post

The Cupertino, Calif. company finished the quarter as Russia's number three profit leader behind Nokia as the Finnish handset maker suffered a huge loss and dropped from a market-leading 47.5 percent to 27 percent.

 

 

Wait - Apple made less profit than Nokia?  Samsung I can understand, but Nokia?

post #9 of 46

Apple share of Russian smartphone revenue slips as Samsung's doubles

So Samsung's Russian share is rushin', while Apple's is slowin'.

 

Is that right?

 

 

<snigger>


Edited by GTR - 7/9/12 at 9:19pm
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post #10 of 46
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Originally Posted by GTR View Post

So Samsung's Russian share is rushin', while Apple's is stallin'.

Fixed that for you, (former) comrade.

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post #11 of 46

Spasibo!

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post #12 of 46
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Originally Posted by Tallest Skil View Post


Fixed that for you, (former) comrade.

 

This post gets top marx from me. 

post #13 of 46
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Originally Posted by Quadra 610 View Post

This post gets top marx from me. 

Just len'in' a hand where I see someone in need.

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post #14 of 46
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Originally Posted by Quadra 610 View Post

This post gets top marx from me. 

I guess from each according to his ability....
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post #15 of 46
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Originally Posted by Tallest Skil View Post

Just len'in' a hand where I see someone in need.

Did you put'in a happy face when you typed that?
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post #16 of 46
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Originally Posted by boeyc15 View Post

Did you put'in a happy face when you typed that?

No, but I've been where fashion sits…

390

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post #17 of 46
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Originally Posted by Tallest Skil View Post


Just len'in' a hand where I see someone in need.

 

Aww, now my face is all red. 

post #18 of 46

In Soviet Russia...

 

 

...ah hell there had to be joke in there somewhere.

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post #19 of 46
It's funny to remember there was, not so long ago, an export ban to Russia on computers far less powerful that an iPhone.
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post #20 of 46
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Originally Posted by Tallest Skil View Post

No, but I've been where fashion sits…
390

That's funny but it makes my eyes water! Oh that's gotta hurt!
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post #21 of 46
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Originally Posted by DaHarder View Post

Nice... especially as Samsung's really producing some outstanding smartphones.
See: Entire Galaxy S-series.

So do you drive a Kia or a Huyundai?
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post #22 of 46
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Originally Posted by Quadra 610 View Post

This post gets top marx from me. 

 

Quote:
Originally Posted by Tallest Skil View Post

Just len'in' a hand where I see someone in need.

 

Quote:
Originally Posted by boeyc15 View Post

Did you put'in a happy face when you typed that?

 

My floor is seriously getting rolled and laughed on right now.

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post #23 of 46
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Originally Posted by JerrySwitched26 View Post

 

 

Wait - Apple made less profit than Nokia?  Samsung I can understand, but Nokia?

This must be an error. Maybe they mean that Nokia sold more phones, but that's a different thing from being profitable.

post #24 of 46
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Originally Posted by DaHarder View Post

Nice... especially as Samsung's really producing some outstanding smartphones.
See: Entire Galaxy S-series.

People must really like KIES and TouchWiz.
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post #25 of 46
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Originally Posted by Retrogusto View Post

This must be an error. Maybe they mean that Nokia sold more phones, but that's a different thing from being profitable.

 

 

Hard to believe, but true.

 

I wonder where eke in the world Nokia makes more profits than apple with its smartphones.

post #26 of 46

In Russia, Virus gets Samsung

post #27 of 46

There's absolutely nothing Apple can do to compete in smartphone market share with Samsung.  Or should I say that Apple is unwilling to do so.  Samsung sells a number of low-end smartphones with current features.  Apple will only sell the older model iPhones for reduced prices.  I guess Russian consumers aren't going for that but it's the best way for Apple to keep profits high by selling devices that have basically paid for themselves a long time ago.

post #28 of 46
Yup, the do some clever stuff Apple. I mean, even Golden Master Status has more than a touch of brilliance.
post #29 of 46
Quote:
Originally Posted by DaHarder View Post

Nice... especially as Samsung's really producing some outstanding smartphones.
See: Entire Galaxy S-series.

well, most likely you wouldn't find a s2 or a s3 in the wild. the changes to find an iPhone would be much higher.

 

it's a market for cheap plastic junk, the kind of market that suits samsung.

post #30 of 46
Hello my comrades, im russian and i want to say my word.

This all happens because, unlike Apple, Samsung has official representation. 14% is not really bad for Apple, not having official Apple Stores here, almost not having tech support and all those yummy things you have in civilized world.

Also, this study does not include the gray market. You can buy iPhone 4S from europe for around 24000 roubles instead of getting it from cell provider for 35000 or more 1smile.gif Most people i know got their devices on graymarket. I got my mac when i traveled in Singapore (-50% of price in Russia, 2008). My iPhone is from Germany, and my iPad 2 3G 32 Gb cost was $1150 just because i got it from russian 'premium reseller'

And nokia is still selling good, just because many people loved them for a decade or mores My first nokia was 5110, and then i had five different nokias before switching to apple
My grandma had three different nokia. My uncle always loved nokia, using E72 and not going to change it.
You are right, population is declining, and most of adults and elders are conservative and prefer Nokias. They have no purpose to buy smartphones, but Nokia C6 with Symbian can count as smartphone too.

And for Apple, Russia does not exist. I'm surprised they have AppStore working here, the Ukraine got it working four years after iPhone launch 1smile.gif
post #31 of 46
Quote:
Originally Posted by konstn View Post

Hello my comrades, im russian and i want to say my word.
This all happens because, unlike Apple, Samsung has official representation. 14% is not really bad for Apple, not having official Apple Stores here, almost not having tech support and all those yummy things you have in civilized world.
Also, this study does not include the gray market. You can buy iPhone 4S from europe for around 24000 roubles instead of getting it from cell provider for 35000 or more 1smile.gif Most people i know got their devices on graymarket. I got my mac when i traveled in Singapore (-50% of price in Russia, 2008). My iPhone is from Germany, and my iPad 2 3G 32 Gb cost was $1150 just because i got it from russian 'premium reseller'
And nokia is still selling good, just because many people loved them for a decade or mores My first nokia was 5110, and then i had five different nokias before switching to apple
My grandma had three different nokia. My uncle always loved nokia, using E72 and not going to change it.
You are right, population is declining, and most of adults and elders are conservative and prefer Nokias. They have no purpose to buy smartphones, but Nokia C6 with Symbian can count as smartphone too.
And for Apple, Russia does not exist. I'm surprised they have AppStore working here, the Ukraine got it working four years after iPhone launch 1smile.gif

 

Thank you for providing a truly authentic Russian view!

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post #32 of 46

I'm from Ukraine and i can confirm that there's really nothing to discuss about this news article, because Apple is still simply not present in Eastern Europe. The same situation as in Russia (or any former Soviet Union country). Samsung, Nokia & HTC have been there for years and Nokia is worthless crap today, but it has gained a good reputation over the years.

 

Just compare, Macbook Pro with Retina:

in us - $2199

and for example, in the netherlands - 2279euro = $2800

extra $600 for nothing - do you feel the difference? I'm pretty fine with gray market, these guys will make $100-200 on your device, which is better than $600 by official Apple Store in Europe.

 

i own iPhone 4 16gb since 2010, which cost $650 in US + tax (where applicable)

i bought it in Ukraine for $800 on gray market

at the same time the shops (not even official Apple Resellers or something like this) were selling it for $1000+

post #33 of 46
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Originally Posted by Lbrtn View Post

I'm from Ukraine and i can confirm that there's really nothing to discuss about this news article, because Apple is still simply not present in Eastern Europe. The same situation as in Russia (or any former Soviet Union country). Samsung, Nokia & HTC have been there for years and Nokia is worthless crap today, but it has gained a good reputation over the years.

Just compare, Macbook Pro with Retina:
in us - $2199
and for example, in the netherlands - 2279euro = $2800
extra $600 for nothing - do you feel the difference? I'm pretty fine with gray market, these guys will make $100-200 on your device, which is better than $600 by official Apple Store in Europe.

i own iPhone 4 16gb since 2010, which cost $650 in US + tax (where applicable)
i bought it in Ukraine for $800 on gray market
at the same time the shops (not even official Apple Resellers or something like this) were selling it for $1000+

Once again, these international comparisons are meaningless.

First, the US number does not include sales tax. The Netherlands and Ukraine numbers include VAT. That alone makes up more than half of the pre-tax difference.

There are also different costs in operating in different countries. Minimum wage for retail employees is higher in most of the world. Employees get more vacation time. Apple must offer longer warranties in much of Europe. There are also other costs of doing business in European and former Soviet countries.

In the end, if you want a $150 phone, it's not going to be an iPhone, at least not anything of recent vintage.
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post #34 of 46
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Originally Posted by thataveragejoe View Post

In Soviet Russia...

 

 

...ah hell there had to be joke in there somewhere.

 

In Soviet Russia Mobile Phone buys you.

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post #35 of 46
Quote:
Originally Posted by konstn View Post

Hello my comrades, im russian and i want to say my word.
This all happens because, unlike Apple, Samsung has official representation. 14% is not really bad for Apple, not having official Apple Stores here, almost not having tech support and all those yummy things you have in civilized world.
Also, this study does not include the gray market. You can buy iPhone 4S from europe for around 24000 roubles instead of getting it from cell provider for 35000 or more 1smile.gif Most people i know got their devices on graymarket. I got my mac when i traveled in Singapore (-50% of price in Russia, 2008). My iPhone is from Germany, and my iPad 2 3G 32 Gb cost was $1150 just because i got it from russian 'premium reseller'
And nokia is still selling good, just because many people loved them for a decade or mores My first nokia was 5110, and then i had five different nokias before switching to apple
My grandma had three different nokia. My uncle always loved nokia, using E72 and not going to change it.
You are right, population is declining, and most of adults and elders are conservative and prefer Nokias. They have no purpose to buy smartphones, but Nokia C6 with Symbian can count as smartphone too.
And for Apple, Russia does not exist. I'm surprised they have AppStore working here, the Ukraine got it working four years after iPhone launch 1smile.gif

Sounds exactly like my country. Most American member of this board never travel overseas, let alone see how cell phone sells other side of the Pacific. They don't know what they are missing; 2 Baht an app, 2-hours wait screen and backplate replacements, Line, an so on.

post #36 of 46
Quote:
Originally Posted by konstn View Post


You are right, population is declining, and most of adults and elders are conservative and prefer Nokias. They have no purpose to buy smartphones, but Nokia C6 with Symbian can count as smartphone too.

C6? I though older people like you described would go for something larger, maybe N8, X7 or something that size. Thai customers sure are and sizes don't seem to be a problem.

post #37 of 46
Quote:
Originally Posted by Constable Odo View Post

There's absolutely nothing Apple can do to compete in smartphone market share with Samsung.  Or should I say that Apple is unwilling to do so.  Samsung sells a number of low-end smartphones with current features.  Apple will only sell the older model iPhones for reduced prices.  I guess Russian consumers aren't going for that but it's the best way for Apple to keep profits high by selling devices that have basically paid for themselves a long time ago.

Then how would you explain 7" iPad Mini?

 

Don't mean to offend you sir, but if even Apple has to bow to the reality of U.S. Great Recession I can understand. Especially if their China expansion cannot come fast enough to pick up slack from the U.S.

 

I know Apple don't want to play the price game, but shrinking income and retail sales keep dropping nationwide may force Apple's hand eventually. Thanksgiving-Christmas 2012 will tell me more, though I am expecting a bloodbath and unpleasant pictures.

post #38 of 46
Quote:
Originally Posted by Fairthrope View Post

Then how would you explain 7" iPad Mini?

 

Don't mean to offend you sir, but if even Apple has to bow to the reality of U.S. Great Recession I can understand. Especially if their China expansion cannot come fast enough to pick up slack from the U.S.

 

I know Apple don't want to play the price game, but shrinking income and retail sales keep dropping nationwide may force Apple's hand eventually. Thanksgiving-Christmas 2012 will tell me more, though I am expecting a bloodbath and unpleasant pictures.

No need for a bloodbath, there are people who will pay for the iPhone at the present prices, a lower phone with less features won't cannibalise.

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post #39 of 46
Quote:
Originally Posted by Fairthrope View Post

Then how would you explain 7" iPad Mini?

The one that doesn't exist, doesn't look like it will ever exist, and can't be used as evidence for anything until the day an Apple executive is holding it on a stage, you mean?
Quote:
Don't mean to offend you sir, but if even Apple has to bow to the reality of U.S. Great Recession I can understand.

They don't, however.
Quote:
I know Apple don't want to play the price game, but shrinking income and retail sales keep dropping nationwide may force Apple's hand eventually.

Fortunately their income is only increasing and their sales are only skyrocketing.
Quote:
Originally Posted by asdasd View Post

No need for a bloodbath, there are people who will pay for the iPhone at the present prices, a lower phone with less features won't cannibalise.

Exactly! And Apple already has that plan in place.

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post #40 of 46
Quote:
Originally Posted by Fairthrope View Post

C6? I though older people like you described would go for something larger, maybe N8, X7 or something that size. Thai customers sure are and sizes don't seem to be a problem.

i'm sorry, was talking about Nokia C5-00. A phone with a large keyboard and Symbian OS. I see it is very popular and widely used by people of 50 years and over.

I may also add about Samsung: two big previously Nokia Stores now belong to Samsung..

There are rumors about Apple hiring executive staff to begin working in Russia but looks like it's all fake.

Unlike other countries, most russians got access to tech and gadgets far after the USSR fall because of economic disasters. To see a 50-60 year old using a smartphone and know how to use it, is a very rare luck. Many smartphone buyers here are geeks (love to tinker under the hood and customizing till death of phone) or chavs around 20-30 years (sending and receiving SMS and talking voice, using internet on their smartphones only in Free McDonalds WiFi lol)
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