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Mobile retail in Russia is more profitable to sell the iPhone than smartphones

Lower prices on mobile devices have made the main profitable category for retailers cellular accessories, according to “Vedomosti” with reference to the study of MTS. Cell retailers more profitable to selling cases and headphones for iPhone than mobile device American brand. According to MTS retail chain, in the III quarter of 2015 on accessories had up to 60% of the profits of the Russian market from sales of equipment.

In July-September 2015 mobile retail sold accessories in the amount of 9.5 billion rubles, which corresponds to just over 10% in total revenue of sellers in the market under consideration. The lion’s share of the income generated smartphones (77 %) and tablets (12.8 per cent).

The accessories of gadgets have the greatest profit margin — an average of about 50% and for some products figure reaches 95% versus 5-15 % in smartphones and tablets. According to the representative of MTS Dmitry Solodovnikov, the operator margin for mobile devices is close to zero.

With the market of accessories for the III quarter of 2015, which leads MTS, and indicated in her report the average rate of return of 50% for accessories I agree the President “Euroset” Alexander Malis. According to him, in 2014 this rate of return was even higher – about 58%. The profit margin from the sale of other equipment retailers have on average 25-30%, says Malis. Most likely, MTS, trading practically to “zero” the spring of 2015, the figure is really much lower, he says a lower number in the report of MTS.

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The Malis do not agree with the leadership of this business from the point of view of profit. The share of accessories accounts for about 35-45 % of retailers profits received from the sale of equipment (without sales contracts, receiving payments, financial services and sales of non-Telecom goods and services), says the top Manager.

In the “Connected” assess the profitability of sales of accessories on the level of 10%, depending on the refresh cycle of the product, said the representative of the retail network Maria Zaikina.

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