“The messenger” entered the price war on the mobile market

Russian mobile retailer Svyaznoy reduced prices on popular models of smartphones. As of 16:30 on Friday, 1 April, the maximum reduction of prices in the online store seller of electronics was 18% compared with prices on 29 March and 29% in comparison with the prices of March 3, according to the calculations . Reduced price — response “Liaison” to the actions of competitors and the means to stimulate consumer demand, said the commercial Director of the retailer Nikolai Pulic.

Svyaznoy reduced prices more than 300 models of gadgets and accessories on the evening of 31 March, the maximum amount of discounts as high as 45%, said the representative of the company Maria Zaikina. According to her, the reduction applies not only online store, but also retailers, and information on discounts in the catalog are updated every hour. Judging by the website of the online store “Svyaznoy”, compared to 29 of March, the company cut prices on flagship smartphones Apple (from 500 rbl. to 4 thousand rbl., or 1-5%), HTC (500-2000 roubles, or on 6-15%), Lenovo (500-5000 rubles, or 7-18%), LG (800-5000 RUR or by 7-13%). One leads and another example: smartphone Dual SIM Lumia 430 fell more than 30%, up to 3.5 thousand rubles. Also the prices have dropped on tablets, photo cameras, smart watches and accessories. For example, “smart” watches Belsis TEC (different modifications) fell by 35-45%, up to 2-2,5 thousand rubles.

Before you reduce prices, “Svyaznoy” increased purchases from suppliers to provide a sufficiency of goods, said Zaikina. The retailer hopes to be able to increase revenue from the sale of cheapened products not less than one and a half times, says a company representative, but does not disclose their share in total sales. According to Zaikina, the company expects to increase revenue and sales of related services and products: accessories, chargers, SIM cards, credit cards, insurance policies, etc.

“The messenger” not the first among the major mobile retailers reduce the prices of mobile devices in recent days. “Euronetwork” has reduced the prices on March 30, the company representative said Ulyana Smolskaya. The retailer began preparing for this for five months, also increasing the purchase of gadgets. “Euroset” bought them “billions [of the pieces] so that the action was indefinite,” said Smolsky. According to her, the prices dropped by 200 smartphone models, the maximum reduction is 50%. “Our goal is to change the pricing of the market to make smartphones were cheaper for the buyer, and to remove the gray players who cheat the state and the consumer: the state does not pay taxes, consumers do not provide warranty service,” said Smolsky.

Russian mobile retail

On 8,4% dropped the number of smartphones sold in Russia in 2015 compared with 2014. In monetary terms, sales increased by 5%

25.5 million smartphones sold retailers in Russia in 2015

5.2 thousand own salons of MTS — the largest cellular retailer Russia

At 37.4 per cent, to 40.3 billion rubles, increased MTS revenues from sales of handsets and accessories in 2015

At 33% fell sales of tablet computers in Russia by the end of 2015 — up to 6.2 million devices

67% of all sold in 2015 mobile devices — smartphones. On regular cell phones account for only 33% of the market

27% of the proceeds from sales of all smartphones in 2015 the Russian retail networks iPhone sales, 25% sales Samsung, 9% sales Lenovo

At 9% increased in 2015 the average cost of a smartphone compared with 2014

Source: Euroset, Svyaznoy, MTS, J’son & Partners Consulting

After the innovations in “Euroset” and “Coherent” on the revision of the pricing policy announced and MTS, which owns the largest network of salons of cellular retail in Russia. From 1 April, the operator has reduced the prices on 5 thousand SKUs in its retail stores, said his spokesman Dmitry Solodovnikov. According to him, the maximum discount on smartphones from 5 to 9 thousand rubles for individual models of Apple, Nokia, Samsung, Alcatel, and Asus, and tablets — 12-13 thousand rbl. for devices Sony Tablet Z3 and the Apple iPad Air. As follows from the calculations based on the data of the online store MTS, to 1 April compared to March 29, the price of Apple smartphones fell by 500-2000 rubles (1-3%), HTC — 2-4 thousand (10%), Alcatel — on 1 thousand rbl. (6-20% depending on model), Samsung — 500-5000 rubles (4-10%).

In addition, MTS announced that it will start to return both new and existing subscribers 10 thousand rubles. on the mobile phone when you purchase the Samsung Galaxy S7 Galaxy S7 Edge. The same mechanism of reverse subsidies MTS “soon” plans to extend to budget smartphones (up to 5 thousand rubles.), said Solodovnikov. According to him, the actions of the company — continuing last year’s strategy: in April 2015, MTS has reduced prices of gadgets, discounts amounted to 10-30%.

“VimpelCom” (brand “Beeline”) in the course of a week also lowered the price by about 60 models, said a company representative Anna Imasheva. Actions of competitors she did not comment on. Among brands of smartphones, which fell from the retailer, a — Fly, Apple, HTC, Alcatel, Microsoft, Lenovo, ZTE and LG. analyze the prices in the online store “Beeline” 1 April compared to March 29: the maximum reduction was 40% for the budget smartphone under its own brand “Beeline”. In absolute terms most of all cheaper smartphone HTC One A9 colors Carbon Gray — for 9.5 thousand rubles.

Lowered prices and “MegaFon”, says his representative Yulia Dorokhina. According to her, it touched “several dozens” of smartphone models, the maximum reduction — 50% (for the last few weeks). Like MTS, the operator returns a fraction of the cost of the device to the mobile account of the subscriber. The prices on 1 April in comparison with March 29, MegaFon has declined by less than 50%: Apple’s smartphones have fallen in price on 500-1000 roubles (1-2%), Lenovo — 500-3000 RUB (7-18%).

The situation of the price war can continue long, because retailers compete for customers and price is the only thing you can to attract them, said General Director of analytical Agency TelecomDaily Denis Kuskov. The market is stagnating, so competition for customers is growing, he recalls. In 2015 smartphone sales in Russia fell by 8.4% compared with 2014. Such a policy will lead to lower profitability and loss of clients could adversely affect revenue, says Grand.