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Striking back: Nokia regains lead in Russia, passes Samsung on the way

Latest market share numbers from Russia's largest retailer puts Nokia ahead of Samsung

There’s nothing but positive results for Nokia and Windows Phone lately. Today, we’re continuing the momentum with news from Russia where Nokia has surpassed Samsung for market share. The story was first published in Vedomosti, Russia’s premier business paper

The data itself comes from Russia’s largest mobile retailer, Euroset, who have more than 5,000 stores across the vast country. Their latest report puts Nokia at 29% of the mobile market in Russia this summer, up from 27% in the spring. Samsung meanwhile has dropped to 27% from a previous 30% just a few months ago. That bump gives Nokia back the edge since Samsung beat them earlier this year (the two often go back and forth in terms of market share in the country).


Source: Euroset, Summer 2013

The reason why Nokia is doing so well? Budget phones and Nokia’s large portfolio. Indeed, Nokia’s average price for a smartphone has dropped to 2769 rubles this July compared to 3292 rubles the same time last year. While a lot of the motion is being driven by the Lumia line, which has seen its prices drop lately, the Asha brand is also strong in Russia too, helping keep Nokia more than relevant in the market.

Russia presently sells the Lumia 620, 625, 720, 920, 925 and is set to launch the Lumia 1020 in October.

Windows Phone Central recently reported that the big news story going forward for smartphones was the price war. Nokia is well positioned for that fight and the results in Russia seem to prove that point. Even Apple is finally getting in on the competition with their lower-cost iPhone 5C, though that device’s price pales compared to an $80 Lumia 521.

Recently, Russia’s largest mobile operator MTS gave praise to Nokia and Windows Phone. MTS stopped selling the iPhone late last year due to the high subsidy costs and instead are looking to champion Windows Phone as an alternative.

Between IDC’s 77% increase for Windows Phone shipments this year and Kantar Worldpanel’s sales growth, Windows Phone is starting to dig its feet in for long term and steady progress in the market.

Source: Vedomosti

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Reader comments

Striking back: Nokia regains lead in Russia, passes Samsung on the way

131 Comments

I lived in Russia for 2 years. Really made me appreciate the USA. The country sucks but at least I got a hot wife out of it :)

This. Happens like clockwork around here. Only defense is to have Kids, spend a ton on their schooling, and agree to sponsor her Mamma and Sisters to come over here. Caught in a honey trap.

I have been visiting and living in Russia for the past 8 years and love it there. One of the many benefits is that it is such a Microsoft strong country. Can't wait to get back.

Lol are you proud of buying your wife? It doesn't happen in Canada that often. Probably just in USA?

Combative? I've been out a lot including GB and USA, we are as peaceful as Netherlands and French. It's like calling States combative because of Bush and Obama.
And we love Nokia, sure there's Russia among countries where Nokia regains the lead.

Lower cost Iphone 5c? $550 off contract is low cost? Apple is a joke. It kills me people are really considering getting a 5c. Might as well get a 5s especially since they're both on contract. Low-cost my butt. Isheep once again... Amaze me.

Isn't that even questionable? The 5C is just the 5 in polycarbonate, and the annual refresh would have dropped the 5 from $650 to $550 (where the 5C is now) anyway, wouldn't it?

Exactly. I don't understand what all the artificial fuss is about. It's a 5 and it would have dropped to 550 when the 5S comes out, and they have just made it cheaper to produce to increase their profit margin (probably now achieving the same profit margin as with the 5S, or even a higher one, so an absolute win for Apple), while giving people something unaspirational that will force those who seek an iPhone for the fashion or upmarket looks to pick the more expensive 5S, instead of the cheaper 5 which now isn't available in the premium look but only in the ugly and cheap colors look (seriously, the iPod looks good in the colors it has, this looks ugly and the colors are ugly - and it's all on purpose!), because most people don't care about the details and the 5 was good enough the past year and is a big step up from their old 4S or whatever old Android they had. Just like they did when the 5 came out and the 4S was available cheaper, and the same when the 4S came out and the 4 was available cheaper. They noticed that a lot of people are picking the previous model at a cheaper price, and that cut into their revenue and profit. So now those who want a nice iPhone will not have a cheaper alternative any more, and the 5 would have been perfect for a lot of people (I personally know several people who wanted to get the 5 once the 5S comes out and it gets cheaper, but are not getting the 5S because the 5C is so ugly). So this is a triple win for Apple. It's really a no-brainer what the iPhone 5C is supposed to do and be. And "making it affordable for more people" isn't any of it.

Have a great marigin on something you don't really want anybody to get! And that's smart?
 

Of course it is. Better than having a small margin on something everyone will get over your more expensive product. People will still buy this 5C, a lot because they can't or don't want to afford the more expensive one, and a few because they like the look, and some because they don't care because they were gonna put a protective shell on the metal iPhone anyway. That doesn't mean Apple doesn't want to push people towards the more expensive phone, instead of giving them a phone that's externally the same , but with a previous, but still very fast, processor. The cheaper 5 would outsell the 5S by a wide margin. The 5 was diferentiated from the 4S by the larger screen and new thin and good looking body, that's what was the aspirational part of it over the previous "discounted" (I use this term very lightly, because in the free market their phones wouldn't even cost half the original price, like with every other manufacturer) phone. Now they had to invent a new aspirational drive. A fingerprint sensor isn't enough, it's a gimmick, like Siri.

From my limited understanding of the industrial process, I am led to believe the problem Apple was having is that they were not getting overly good savings on old models due to their build process. Thus, they switch to a cheaper design and will be able to lower prices in a more agressive way whilst retaining their huge margin.
 
Having said that, it's awesome that Nokia is doing (increasingly) good in some markets, I can't believe it's taking so long for WP to get a foothold in some markets since it is, in my opinion, the best looking and functioning OS by a mile out there. Sure it might lack a thing here and there, but essentially, it works and does so incredibly smoothly.

And neither did Apple. They are not unable to do math. They will dig deep into the top end of the "Budget" on contract market, but only where Carriers heavily subsidize handsets. Even then the really budget conscious will go for free phones. Off contract/non subsidized customers will still buy it, but only a few of them.
I'd say they are sticking their toe carefully into a market they know nothing about. Look for a true "budget" iPhone within 2 years as shareholders start screaming at them and they have to abandon their "Only Premium Quality" mantra.

I bet they are in Finland now recruiting disaffected and worked design and production people. If I were them I'd be cost engineering the iPhone 5 or 4s into a Nokia chassis like mad. Dies anyone know if the MS/Apple Patent cross license deal apply to third party unlicensed IP?

Exactly, that's why Nokia makes low and high end devices and their quality is always good even on cheaper handsets

You mean
iPhone 5 Costly
iPhone 5 Supercostly
It's either expensive or very expensive
AND when Jobs passed away so did genious innovation
cr*p, supercr*p

In Russia Nokia 920's price is 620$, 925 - 690$, 520 - 220$, In Russia smartphones is not supsidized by provider. You can buy yuor phone in any shop you want. And use with any operator you want. And you need to pay 100% coast of your phone yourself.

Apple is doing harm to its brand by offering the 5c alongside its premium device. Bad for Apple. Good for the competition.
"A Tale of Two Iphones-A House Divided"
Let the class wars begin. In Charles Dickens popular novel, A Tale of Two Cities, we are presented with a powerful picture of the affects of the disparity between the classes. We see clearly how when there is one class that perceives itself above another, there is division and contention. With the introduction of the Iphone 5c alongside the flagship 5s Apple is giving birth to two classes of iphone users. Apple has a problem. (continue reading....)
http://techwordblogdotcom.wordpress.com/2013/09/14/tale-of-two-iphones-a...

Actually...
"Then in 1987, Nokia introduces the Mobira Cityman, the first handheld mobile phone for NMT networks. Despite weighing in at 800 grams and a price tag of 24,000 Finnish Marks (around EUR 4,560), it goes on to become a classic. The Cityman even earns a nickname, the “Gorba”, after Soviet leader Mikhail Gorbachev is pictured using one to make a call from Helsinki to his communications minister in Moscow."

Haha I know. I was just kidding. I do think Ubuntu touch is doin what wp8 and w8 were supposed to do a lot better though

Unfortunately, Ubuntu Touch will remain dead until it can be resurrected. The worldwide fund raising could only come up with 1/3 the required amount. I have a feeling it will continue to remain dead in the foreseable future.

The Ubuntu Edge is dead, but the Ubuntu Touch OS is far from it. Canonical said to expect Ubuntu phones in 2014

Clearly, the Russians prefer a phone that can survive the harsh conditions of the vast tundra-- an iPhone just isn't going to cut it, comrades. XD

WP does seem to be gaining momentum everywhere apart for the US. I wonder what it'll take to make a dent in the market. Maybe will have to go for last resorts and hire Justin Bieber :s

This is Nokia, not WP. It might be 520 gaining marketshare, or it might be Asha or basic phones selling well.

Ok im not sure if everyone is aware of this.
I tweeted @nokia #lumia ryt.
Now I went back to see my what's new on ME TILE I accidentally tap the @nokia then it sent me to nokiaus tweeter page, same thing with #lumia I tap on it,my phone sent me to TWEETER #LUMIA DAMN ALL THIS TIME I DIDNT EVEN KNOW I HAD THIS OPTION
FYI STILL ROCKING MY L900 7.8
WAITING FOR THE BANDIT

Let's hope that Microsoft will optimize and fix many issues of the OS to gain even more marketshare!!!
GDR updates should mainly fix issues/bugs (Overheating,massive battery consumption,fragmentation) and optimize the software as much as possible and after that the OS version updates (like the WP8.1) could introduce more new features!
Microsoft/Nokia/Htc/Samsung must prioritize the fixing of the issues and then go on!
 

At least the OVERHEATING AND RELATED MASSIVE BATTERY CONSUMPTION my friend!
Something need to be done!!! WP may be great and have the potential to own more marketshare in the future but WP is also very bugy and this has to be fixed with te GDR updates!!

I can show understanding and patience until GDR3. If GDR3 will be a sh***y update too that doesn't improve and fix main issues and also the nokia bittersweet firmware update too if it doesn't improve anything serious then NOKIA and MICROSOFT will force me back to my iphone 4s and the good old days without always being afraid to run apps or games because of the overheating and the related massive battery consumption issue that is caused mainly because of BUGSSSS!

What overheating issue and bugs??? That's nonsense. No issues on Ativ S. But I'm still on WP8...no GDR whatever. It's ok though, Sammy always gets their updates late. All I wait for is features update.

Maybe it could be Firmware issue.I m only saying that the problem is caused by software bugs!
Go check on Nokia support forum how many are suffering from this issues,how many of them have their devices replaced even 3 and 4 times and after all they are encountering the same issues!
 

The real question in my mind is what is the one on the bottom of the chart? I imagine that like most charts it is the category of 'other', but it is hard to imagine a group of 'other' devices that could gain that much market share in a year.

That's why i don't get that MS is won't sell phones under the Nokia brand. They have such a good reputation in a lot of markets. And with so affordable Lumias the market share in those regions will spike drastcally in the coming months. When you have the choice between an $60 Asha with Symbian or a $80 Lumia a lot of people will go for the latter. Then they are in the WP ecosystem, which is a very important step for MS. I am not sure how this progression from Nokia Asha to Microsoft Lumia will go though.

This is very impressive, but with two "but"s:
1) Unlike US, Russia doesn't have carrier-subsidized phones, meaning Apple's premium prices make their phones 20-50% more expensive than comparable Android phones. When the original iPhone 3G was sold in Russia, carriers were expected to purchase phones from Apple, pay for them upfront and sell them subsidized (and locked) or resell them at full price. Subsidized phones failed because of a much higher monthly rate and reselling Apple's phones was not profitable because of cheaper grey market iPhones. Apple still is expecting carriers to take the risks of purchasing millions of iPhones and then trying to sell them and carriers are showing Apple the finger by selling Android and Windows phones and bragging that they don't need Apple to be successful. Carriers now prefer someone else to sell than iPhones and prefer to keep Samsung where they are instead of becoming Apple, so that's why they're promoting non-Android operating systems. Also most people buy phones online or in other electronics stores.
2) Notice how the graph shows ridiculously slow iPhone sales, something around 3-5%, while iPhone marketshate in Russia is somethig like 30%. This is because of the reason 1, and also because Euroset has huge incentives for sales of specific brands. They previously had a disagreement with Nokia that ended up in zero commision on Nokia phone sales for sales staff - which ended in a lot of potential Nokia sales being switched to other brands. There's a very high chance that Euroset is trying to do the same with Samsung so that they "know their place", become more agreeable and not turn into the next Apple.
 

My Lumia 822 Is my second windows phone, love it! I wish more people were open to trying a new platform.. Microsoft and Nokia has impressed me greatly!

I'm sure Samsung sells a lot of feature phones too - so apples to apples.  But I'd guess Windows Phone holds its own there.  I'd read a couple reports suggesting that WP was the most popular smartphone platform in Russia.
 
And Asha is likely to be an onramp to WP going forward.  Phones like the 520 will only get less expensive as time goes by.  So I expect we'll see some solid, low cost WP handsets continuing to be made in the future.  Those will then be gateways to more expensive handsets.
 
 

Those reports were not true. I always see in wild only a lot of android phones, less iPhones and WP is very very rare. And most of people think that Nokia makes the beat feature phones. So why this article doesn't show real situation here.

I wonder how the Nokia 515 will go over in these countries. Too bad it's not coming out in the US market.

With the Winter War, the Russians should be doing more for Espo than just buying their phones.  Reparations would be a good start.

Cuz everyone buy off contract phones and iPhone is the most expensive. It goes better that it is shown on the diagram but euroset seem to have too high prices compared to others.

Guys, I've worked for a wireless company since before Windows Phone 8 came out and there's a problem that nobody ever talks about. This is a huge problem that I've noticed about windows phone that is more damaging than not having 6" screens, quad cores, 900k apps, and low price points. Can anyone guess what I'm talking about? Here it is... loyalty. When ever a customer comes in With a WP7 device or a damaged WP 8 device, they hardly ever upgrade to a new WP. They either get a new android or iPhone but never even consider getting a new WP. This is bad because if people are not loving their Windows Phone, this new market share bump will mean nothing in the future. The install base has the problem of not growing in the future if everyone starts jumping ship. Why isn't everyone talking about this?? I'm going to start a thread about this on the forum that way more people can read this.

" Why isn't everyone talking about this?"

Look up the word 'anecdotal' and you will see why. Unless you have actual data to report, your experience means literally nothing, sorry.

I mean, should we do an expose on how no one has loyalty to Windows Phone and cite 'blackhawk556' as the source because he says so? That's why no one is talking about it. There's no evidence suggest that is true.

It's true where I work at. If you don't want to believe it, that's fine. But when I see people with WP 7 devices upgrade to other OSes, it's real because I see it myself.

Well, I think I like to admit that as well. In the office, the Lumia users are considered little to none. And with that number ( 3 from 100 ), one is looking unhappy with his 520 because of the missing capabilities that he got from his previous phone. And I don't think he'll get another WP phone by looking at his face.

I'm proud of my 920, my lady colleague with her 720. But that just not enough effort to promote WP ecosystem here in Indonesia. Don't know about other country. plus the ecosystem itself need to hurry the updates of whatever so people who use WP will look happier than other with,another Ecosystem.

Whatever... The point is, it's just not enough campaign here. Nokia and Microsoft need to do better. They need to do the firecrackers!!!

The biggest turnoff why indonesians are not picking up windows phone is maybe because there is no PATH app for wp yet ;). Btw, I have a similar situation in my office, only 2 wp users out of 190 ppl. Me with an Ativ s & another girl with old lumia 810. Indonesia is quite a nifty market. Big budget marketing campaign doesnt always work here. When blackberry was a hit, there was not even a single campaign....but ppl were scrapping blacberries from grey market like crazy. Word of mouth or strong users community is the way microsoft/nokia should market their product here.

I remember when BB First launched Bold series here, they practically put their ads in some of the high end media like TV, detik.com, etc. And then Bold series was a hit because words of mouth served the purpose as well. That's the kind of campaign I want to see.
another things are, MS need to do something so these developers are starting to see WP as the same as another OS. And this colleague of mine will be showing his happy face again and do the word of mouth...

Classic but true...

The "Union broke up more than 20 years ago. In confederate America, we like to re-write history so that others won't discover the truth