Russia's second-hand mobile phone sales increased by 20% in Q1

Second-hand mobile phone sales increased by 20% year-on-year

Data from Avito in the first quarter showed that users sold 20% more used phones on the platform than in the same period last year. Retail chains MTS and Svyaznoy said sales of new smartphones fell 11% during the same period. A report from research firm GfK showed that demand for smartphones in Russia fell 14% from the first week of January to the first week of March.

The data all point to a phenomenon that Russians are saving money on their phones. Andrey Levykin, CEO of retail chain Megafon, said that although smartphone sales have declined, consumers are choosing more expensive devices.

Avito also pointed out that the average price of second-hand mobile phones sold by sellers on the platform is 7,000 rubles, 3% higher than last year. Among them, the demand for second-hand iPhones is the highest. Even though the average price of Apple devices is 11,000 rubles, at some point, iPhone sales accounted for almost half (48%) of all devices on the platform.

Pavel Komarov, category director for home appliances and electronics at Avito , explained that the COVID-19 pandemic has boosted demand for second-hand electronics, which is a good way to save money and upgrade devices with minimal cost.

Another factor that stimulates the demand for second-hand electronic products is that people are more willing to resell idle and outdated mobile phones. Denis Kuskov, head of information analysis agency Telecom Daily, said that the epidemic has caused some people to lose their jobs, and they are improving their economic situation by reselling products.

Eldar Murtazin, chief analyst at Mobile Research Group , said Avito could double its smartphone sales because resales can happen multiple times.

Trade-in is also popular

M.Video, a home appliance and electronics retailer, said that in the first quarter of this year, the number of customers using the company and its trade-in program doubled from a year ago. MTS also said that the most popular product for customers to trade in is the iPhone, accounting for about 50% of all trade-in devices. Among them, the iPhone 6S, iPhone 7 and iPhone XR are the most popular.

Svyaznoy said the number of phones the store traded in for new ones in the first quarter of this year increased more than 11 times from the same period last year. David Borzilov, the company's senior vice president, said that in most cases, customers traded in Samsung, Apple, Huawei, Honor and LG phones and then traded in Samsung and Apple products.

Megafon also said that in most cases, Samsung products are recycled. In addition, customers who participate in the store's trade-in program usually buy new devices for 8,000-25,000 rubles.

Russia