14 July 2005

Mobile Device Market Vibrant In Russia

The mobile device market in Russia is vibrant, with converged handsets leading the field, according to a recent survey.

Mobile device shipments expanded by 55.5% to more than 350,000 units and revenue by 56% to $163.59 million in 2004, according to a report by market research company IDC. The dramatic rise has been put down to falling prices and intense marketing in the country by major vendors. 

"Mobility is picking up momentum in Russia, with both the consumer and enterprise user segments having a solid grasp of the benefits," said Yury Goldaev, research analyst, IDC Russia. "As a result, they are turning to converged devices that include all-in-one functionality. Even if someone doesn't use a given feature, having it available, just in case, has become an important incentive for device selection."

With the Russian market far from saturation point, IDC is forecasting a large growth again this year, with shipments of mobile devices expected to expand 62.7% this year.

Converged devices (those with mobile phone functionality) dominated the Russian market in 2004, accounting for 62.6% of total shipments.

"The expanding market doesn't mean vendors can rest on their laurels," warned Goldaev. "A number of vendors actually pulled out of Russia last year, while a couple others entered the fray. And for those pitching to the enterprise segment, hardware alone will soon no longer be enough; with prices dropping, hardware will serve as a loss leader for a full portfolio of mobile solutions."