Following have been the key updates for the market in 2025:

1. Entry segment giving way to mid-segment:

Following the Russia-Ukraine conflict and the resulting economic uncertainty, the smartphone market initially saw a sharp decline, with demand shifting heavily toward entry-level devices—particularly from Chinese OEMs. These brands filled the gap left by global players and gained consumer trust during this period. However, as replacement cycles progress, buyers are gradually moving up to the mid-segment, reflecting improved confidence in Chinese offerings that once had limited presence. This transition has been further supported by the steady availability of Samsung and Apple devices through parallel imports, which has not only stabilized the mid-tier but also renewed growth in the flagship segment.

2. Parallel Imports keeping the market updated:

Parallel imports, introduced in 2022 after leading OEMs exited Russia following the Ukraine conflict, have flourished in 2025 allowing retailers to source devices from neighbouring countries, ensuring that Russian consumers continue to access the latest models almost in sync with global launches. As a result, flagship smartphones such as Samsung’s Galaxy S25 series, the Galaxy Z 7 foldable lineup, and Apple’s iPhone 17 remain widely available across major retail channels, recording higher demand compared to predecessors. Parallel imports have helped sustain demand in the mid- and high-end segments, preventing a complete shift toward entry-level devices despite ongoing economic challenges.

3. Refurbished segment driving growth:

The refurbished smartphone market in Russia is growing rapidly as consumers seek flagship devices at lower prices without compromising reliability or warranty. Retail leaders like M.Video-Eldorado are investing heavily in infrastructure to support this full-cycle business. Devices enter the market primarily through expanding trade-in programs, which grew 50% in the first half of 2025, and formal buyback services.

Demand is strongest for premium models from leading brands such as Apple, Samsung, and Xiaomi. High-end devices like the iPhone 14 Pro Max and iPhone 15 Pro Max dominate monetary sales, highlighting the appeal of refurbished flagship smartphones.

4. 5G Still Not a Priority

Russia’s 5G network rollout is still in the pilot phase and LTE smartphones continue to dominate the market, accounting for more than 50% of total sales—one of the highest shares globally. While leading OEMs such as TECNO and realme offer both LTE and 5G variants, consumers overwhelmingly choose LTE models due to their affordability. In fact, 5G smartphones average selling price is 3x the LTE smartphones, making them less accessible to the average buyer. Until network coverage expands and pricing becomes more competitive, LTE is expected to remain the preferred choice for most consumers.

Outlook:

Looking ahead to 2026, Russia’s smartphone market is expected to remain largely flat as persistent economic uncertainty continues to weigh on consumer spending. The entry-level segment, which still accounts for a significant share of sales, is likely to face price increases driven by rising component costs, further challenging affordability for budget-conscious buyers. At the same time, parallel imports are expected not only to sustain but potentially increase their share, as consumers continue to favour access to the latest global models despite the absence of official brand operations. This preference aligns with the growing popularity of refurbished smartphones, which offer premium devices at lower prices, making them an attractive alternative in a cost-sensitive environment. Together, these factors suggest a market that will remain stable but highly dependent on affordability-driven choices and alternative supply channels.