“A price war” in the smartphone market was overtaken by the online shopping

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Offline discounts more

In late March the largest Russian mobile retailers, has announced price reductions on smartphones. A month devices fell by 40% in MTS network, 25% in Euroset, 24% in Svyaznoy, told RBC representatives of the networks. However, the prices of smartphones in the online shopping companies decreased on average by 5%, showed the RBC calculations based on data from sites of vendors (read more about methodology — see extract) .

We thought

RBC has analyzed the prices of the smartphones presented on the websites of retailers on 29 March and 25 April for the Moscow region. In the calculations took into account the prices only to devices that were in existence as at both these dates. As a result of RBC in the sample were 90 smartphone from the online store “Euroset”, 257 — MTS, 354 — “Connected”, 261 — “VympelCom” and 154 “MegaFon”. RBC put the prices of all the available smartphones at both dates and compared the sum, thus obtaining the average change in the cost of devices.

Heaviest smartphones fell from “Megaphone” — on 7%, according to the calculations of RBC. In Euroset, Svyaznoy and MTS, the price decline was approximately the same — about 5%, “VimpelCom” (brand “Beeline”) — 4%. Among smartphones, which reduced the price of most retailers in the online shops, HTC, Lenovo, LG, Sony and Apple. Discounts on them ranged from 2 to 20%, but the cost of many devices from a range of sellers has not changed, so the average price decline overall was in the range 5-7%.

The representative of MTS did not agree with the calculations of RBC, refusing to explain the cause of the disagreement. Representatives of other retailers declined to comment on the methodology.

Retailers include in its calculation of the price data not only in online stores but also in retail, explain to their representatives the difference in the data obtained. So, now the range of the smartphones at reduced prices in offline stores, “Coherent” can be 10-20% wider than online, the company representative said Maria Zaikina. MTS device discounts are mainly sold in offline stores, in Internet-shop of MTS represented only 2% of all smartphones, reduced prices, said a representative of the operator Dmitry Solodovnikov. The operator advantageously to attract buyers in physical retail because you can sell and SIM card, encouraging the inflow of new subscribers, says a representative of MTS.

In the outlets of “Euroset” full range of smartphones at a reduced price also wider than in the online store, confirmed a company representative Ulyana Smolskaya. The prices can vary by sales channel and region, according to the interlocutors of RBC. MTS has reduced prices on 70% of smartphones on offer, “the Messenger” — on 20%. Other retailers this figure is not called.

Is there a price war

The main sales networks are in retail, the General Director of analytical Agency TelecomDaily Denis Kuskov. According to him, on the Internet you have no more than 10% of sales. In the “Connected” indicator the higher the share of online channel in trade of a retailer in 2015 exceeded 25%, was previously reported by the company. In “Euroset” online sales take 3-4%, said the President of the company Alexander Malis. MTS on-line accounts for less than 10% of sales, says the statement.

“The messenger” and “Euroset” in the calculation of the price reduction (according to the retailers, 24 and 25%, respectively) take into account the “weight” of each model from the point of view of its popularity with customers. For example, modification of Apple smartphones at a discount of 12% are bought by thousands, while the less popular model In the brand, albeit with a 30% discount, — tens, so when calculating the average “weight” of the Apple will be higher, said a representative Svyaznoy Maria Zaikina. This confirms Smolsky of “Euroset”: the highest weight in the company sales accounted for by Lenovo, LG and Fly, discount which reaches 20-50%. Therefore, although the decline in the prices of other smartphones may be more modest (e.g., Apple — up to 10%), the weighted average discount reaches 25%, says Smolsky calculations of the company.

“The megaphone” in March—April reduced the prices in their retail approximately 250 smartphone models, said company representative Yulia Dorokhina. Indicators of price reduction for months she does not disclose, but according to the results of the first quarter in the network most of all cheaper smartphones supporting LTE — are on average 31%, and the cost of 3G devices decreased by 13%, according to Dorokhina. Lower prices for a number of brands in the stores, “VimpelCom” ranged from 10 to 30%, said the representative of the company Anna Imasheva, without revealing other details.

A price war in the market, but the falling average price of 25-40% is unrealistic, the analyst of IDC Natalia Vinogradova. It is possible that such discounts are offered on individual older models that retailers brought a few months ago and can’t sell, but “the whole market this situation does not concern you,” said the expert. Do not agree with the calculations of retailers and Pieces: according to him, the average decline in the prices of the smartphones for the month amounted to 15%. The fact of the price war on the market, he confirms: according to the analyst, retailers are trying to attract customers, a drop in income increasingly reluctant to make purchases. If the economic situation does not improve, the rivalry of retailers in prices could last until next year, he says.