"Pheasant Instead of Chicken?" China Fills Samsung and Apple Vacancies in Russia

China's Phone Market Share Soars from 40% to 95% After Ukraine War
Same Trend in Auto Industry... Chery and Changan Enter 'Top 10'

After Russia's invasion of Ukraine, it has been revealed that Chinese brands are taking over the space left by foreign companies exiting the Russian market.

On the 25th (local time), US CNN Business reported that as Samsung Electronics and Apple stopped shipping smartphone products in Russia, Chinese companies such as Xiaomi have dominated the mobile phone market, and a similar situation is occurring in the automobile market.

Huawei mobile phones displayed at an electronics store in Moscow, Russia
[Photo by TASS]

According to market research firm Counterpoint, before the war in December 2021, Samsung and Apple ranked first and second in the Russian smartphone market with market shares of 35% and 18%, respectively, totaling over half the market at 53%. However, one year later in December last year, Samsung and Apple's market shares plummeted to 2% and 1%, respectively, totaling only 3%.

In contrast, Chinese smartphone manufacturers' market share rose from 40% to 95% during the same period, currently dominating most of the Russian smartphone market. The top ranks in Russian smartphone sales are occupied by Xiaomi and Realme.

Yan Strziak, Deputy Director at Counterpoint, analyzed, "Chinese low-cost brands Xiaomi, Realme, and Honor quickly responded to the Russian market and seized the opportunity." The shipment volumes of these brands in Russia in the third quarter of last year increased by 39%, 190%, and 24% respectively compared to the previous quarter. In particular, Xiaomi doubled its market share over the course of last year, becoming the number one smartphone seller in Russia.

The automobile market shows a similar pattern. As Hyundai, Kia, and Renault withdrew from Russia, Chinese automobile brands such as Geely took over the market. According to S&P Global Mobility, over the past year, Chinese brands Chery and Changcheng entered the top 10 passenger car brands in the Russian market, while German brands BMW and Mercedes-Benz were pushed out of the top 10.

Automobile market analyst Autostat reported that despite an overall downturn in the automobile market last year, sales of Chinese cars in Russia increased by 7% year-on-year to 121,800 units. Russia's domestic car brand Lada also increased its market share to 28% last year, up 6% from 22% in 2021. During the same period, Kia's share slightly declined from 13% to 10%, and Hyundai's from 10% to 9%.

"Russo-Chinese brands are stand-ins... but they may continue to play the role"

Russo, head of Sino Auto Insight, a consulting firm based in Beijing, said, "The withdrawal of foreign companies due to the Ukraine war created a large gap in the Russian market, and the Chinese filled that gap." He added, "To put it roughly, Russian and Chinese brands are like stunt doubles for lead actors," and "the stunt doubles may end up taking on permanent roles."

Opinions differ on how long Chinese companies' 'reflexive benefits' will last. Since Russian consumers still demand Samsung and Apple phones, there is a forecast that once the war ends and Samsung and others resume business in Russia, their market shares will quickly recover. On the other hand, even if foreign brands return to the Russian market, considering the time required to rebuild supply chains, some believe Chinese companies could solidify their position in the meantime. CNN Business concluded, "Ultimately, how long the war continues will determine the market landscape."

This content was produced with the assistance of AI translation services.