Russia’s largest mobile operator, MTS, said Tuesday it has started selling discounted and second-hand smartphones, offering Russian consumers cheaper alternatives as inflation rises and Western brands suspend deliveries.
Apple halted all product sales in Russia in early March, one of several Western companies distancing itself from Moscow after it sent tens of thousands of troops into Ukraine on February 24 in what it called a special military operation.
Sales of Chinese smartphone brands in Russia doubled in the first two weeks of March, the Kommersant newspaper reported at the time.
Now MTS is offering smartphones from Chinese brands Huawei, Honor and Xiaomi, as well as South Korean manufacturer Samsung, for up to 50 percent less than new devices in its Moscow stores and online. MTS said it would expand the brands offered and the locations where they are sold.
“This is a good opportunity for our company to offer consumers an additional way to save on buying quality gadgets,” said Pavel Sukhovarov, head of retail network development at MTS. According to him, consumers can now buy used gadgets at bargain prices.
Inflation is hovering around 17 percent, eroding Russians’ purchasing power. However, the central bank says the rising ruble and a decline in recently increased consumer demand are putting a brake on purchasing power.
Devices sold by MTS are discounted models that are returned within two weeks or have defective packaging. These devices come with a 90-day warranty.
The telecom company last week reported a 76.2 percent year-on-year decline in first-quarter net profit to RUB 3.9 billion (around Rs 530 crore), partly attributed to higher interest rates.
© Thomson Reuters 2022
