Apple trails Samsung and Xiaomi to rank as Russia's 3rd most-popular smartphone brand

The Russian smartphone ecosystem continues to evolve attracting different brands globally aiming to assert dominance in the region. However, Asian brands are emerging as favorites among consumers. 

Data presented by Burga indicates that Samsung is the most popular smartphone brand in Russia, with a market share of 34% as of Q3 2021. China-based Xiaomi ranks second with a share of 26%. Apple comes a distant third with a share of 15% more than half compared to Samsung. Elsewhere, Realme, also from China, is the fourth largest smartphone brand in Russia at 8%.

Elsewhere, despite Apple ranking third in popularity, several regions have attained a high popularity score for the company’s latest device, the iPhone 13. As of December 19th, Google search for the keyword 'iPhone 13' attained the peak score of 100 in Moscow. In Sakhalin Oblast, the phrase has a score of 83 to rank second, while Moskovsky is third with the same score. 

For Google search, a value of 100 is the peak popularity for the term. A value of 50 means that the term is half as popular while 0 shows the term has no interest. 

Why Asian brands are dominating Russia’s smartphone market

Samsung has managed to outshine other brands replicating its dominance in other global markets. The company regularly unveils new smartphones that are considered trendy with significant updates and better features.

Furthermore, Samsung’s dominance can be linked to the company’s uptake of government’s regulations on managing the country’s digital space. 

In 2020, Samsung announced it would meet the requirements of Russia's law requiring smartphone makers to sell their devices with government-approved pre-installed software. The law, which is considered anti-Apple, appears to have gained favour among most Russians, which has resulted in Samsung devices retailing at low prices as the company attempts to stay ahead of the competition with Apple. 

From the data, Asian brands are dominating the market, with China taking the highest share. For brands like Xiaomi, they have focused on bringing to the market cheap and affordable devices offering flagship features at mid-range prices. The dominance by Xiaomi also reflects the brand's continued expansion outside China. Xiaomi has focused on emerging top in other countries after recording success in other regions like India. 

Drivers for Apple’s low market share in Russia

The price aspect partly contributes to Apple's share in the Russian market. Notably, Apple devices are considered to fetch a considerably higher price. However, despite Apple launching new models with improved functionality, the devices seem to have a minimal appeal among Russian consumers. 

Notably, key players have cited the price as the catalyst behind low iPhone sales in the Russian smartphone industry. For instance, Russians have no existing subsidies to purchase the iPhone as they have to pay in full. This complicates the limited demand aspect, pushing residents to focus on cheaper devices. 

Furthermore, the sales of iPhones are also likely impacted by factors like the exchange rate. Since the country has no established large scale manufacturer, the price of smartphone brands relies on the exchange rate and the level of competition. However, Russia's native currency, the ruble, has continued to weaken. 

Worth noting is that the reception of American brands in Russia has been impacted by the perennial tensions between the countries, a factor likely affecting Apple. A significant topic of contention involves privacy issues with the U.S. accusing Russia of sponsoring hackers to infiltrate state agencies. In this line, Apple has opposed the government's directive on selling devices with pre-installed Russian applications in it. Apple believes the move defeats the company's stand on observing user privacy.