Sales of GSM mobile phones in Russia shrank by 8.1% year on year to just under 30 million units in 2006, according to a new IDC study. By contrast, revenue increased by over 6% to US$5.48 billion as the market shifted to higher-end phones. The already saturated market is expected to recover in the coming years, with midrange handsets playing a major role.
IDC attributes the decline in GSM handset sales almost completely to the maturity of the Russian mobile services market, where the number of SIM cards in use now exceeds Russia's population. "Russia is no longer a fast-growing emerging market as far as mobile phones are concerned," said Simon Baker, program manager, IDC Russia. "Sales are expected to bottom out in 2007 and thereafter grow steadily but not dramatically, at a rate more akin to those of Western European markets, where replacement buying is now the norm."
According to the IDC study, GSM dominated, accounting for nearly 99% of handsets sold last year. Nevertheless, retail sales of CDMA handsets rose by more than 41%, suggesting the technology has a dedicated, if small, user base.
The top 3 brands on the Russian market are Nokia, Samsung, and Motorola, with a combined market share of more than 60%.
The IDC study identified the growing popularity of camera phones and MP3-enabled models. Phones with cameras gained 21.4 points in share to account for over 59% of all mobile phones sold in Russia in 2006. Those with MP3 playback capability made big inroads, too, comprising almost a third of all phones sold in 2006, up from fewer than one in five in 2005.
IDC expects a further dip in the market in 2007 with the first signs of recovery before the end of the year or at the beginning of 2008. Incremental growth in sales volume is expected across the five-year forecast period to 2011. The middle and upper-middle price segments will be the key sales categories throughout the forecast period, although the entry-level segments will remain important as well.
No comments:
Post a Comment