Bit Tube: Manufacturers began to save on gadget parts
Some smartphone manufacturers have begun to sacrifice the functionality of their devices in order to curb price increases, market participants and experts told Izvestia. To reduce costs, vendors use cheaper displays and processors, as well as reduce the amount of memory in individual models. The need for optimization is associated with a decrease in demand for gadgets. According to the interlocutors of the publication, since the beginning of the year, smartphone sales in Russia have decreased by 15-20% compared to the same period in 2025. At the same time, the average cost of devices increased by about 15%, and for individual models — up to 45%. Market participants cite the ongoing global shortage of microelectronic components as the main reason for the price increase.
How vendors save on smartphone components
Due to the rising cost of components, smartphone manufacturers have begun to deliberately reduce the functionality of individual models in order to avoid further price increases, electronics market participants told Izvestia. According to Andrey Tarasov, diHouse's purchasing director, vendors have begun to bring more affordable devices with simplified specifications to the market. We are talking, in particular, about reducing the amount of memory, using lower-quality displays and more budget processors, added Eldar Murtazin, a leading analyst at Mobile Research Group.
— For example, the IQOO Z11x smartphone (a brand of the Chinese Vivo) costs about 33 thousand rubles, whereas a similar model last year was sold for about 20 thousand rubles. At the same time, the new version has a lower—quality IPS screen instead of OLED, as well as a more affordable Mediatek processor instead of Qualcomm. In the near future, the realme C100x will also appear on the market, which practically repeats the previous model. If the device was previously available in versions with 4, 6 and 8 GB of RAM, now only the 4 GB version will be available," the expert gave examples.
According to NTI wireless expert Oleg Yablokov, in an effort to keep retail prices down, manufacturers are forced to save on components by reducing memory and using less expensive screens and other components. However, we are not talking about the widespread simplification of the entire model range, said Andrey Tarasov. This practice mainly affects devices in the budget segment.
In "M.Video" at the same time does not record a massive decrease in smartphone performance. They note that individual product lines may indeed feature versions with less memory or a simplified configuration to maintain an attractive price, but this practice is a standard tool for segmenting the product range.
Marvel Distribution believes that the production of models with more modest characteristics to compensate for the increase in purchase prices can become a sustainable trend. In particular, we are talking about devices with 4 GB of RAM instead of 8-12 GB in more expensive versions.
— We try to ensure that users have a choice for any request and budget, so we are constantly expanding the product range. For example, the current C85 and C85 Pro models, like last year's C75, are equipped with 8 GB of RAM and 256 GB of internal memory," the realme Russia press service commented on the situation. — In the new numbered realme 16 series, the memory capacity has also not decreased. Only the structure of the product line has changed: it now includes three models instead of two, as it was in the realme 15 series, which gives customers more options in different price categories.
They also stressed that the realme C100x is a separate model with its own tasks, it has no direct predecessor.
"We do not comment on rumors about the characteristics of new devices before their official announcement," the company added.
Izvestia also sent a request to Vivo.
How price increases have affected the smartphone market
The forced simplification of smartphone stuffing is taking place against the background of declining demand for them and rising handset prices. According to Marvel Distribution, in the first quarter of 2026, compared to the same period in 2025, the drop was about 20%. In retail, the negative trend has persisted since 2025 and will continue this year. If by the end of last year the smartphone market only slightly missed the mark of 25 million devices sold, then the forecast for 2026 is about 21 million units, according to the company.
Andrey Tarasov, diHouse's Purchasing Director, confirms the decrease in demand. According to him, since the beginning of the year, smartphone sales in Russia have decreased by 15-20% in annual terms.
— At the same time, there was an increase in retail prices for smartphones by 15-25%, depending on the device category. The main reason is the rising cost of memory and other components amid high demand from manufacturers of AI systems and devices with artificial intelligence. This has had the most noticeable effect on the budget and middle segments, where the share of memory costs in the cost of production is higher," he told Izvestia.
In the "Connection.He" also confirms the declining demand for smartphones. According to the company, in the first half of 2026, device sales in physical terms decreased by about 17%. At the same time, manufacturers are increasing prices for new models by 15-20% compared to comparable devices of the previous generation.
"According to our data, in January–May 2026, the Russian smartphone market decreased by 10% in unit terms and by 8% in monetary terms compared to the same period in 2025," MTS told Izvestia.
The main reason for the price increase is the global shortage of memory chips: production facilities are reoriented to the needs of AI services, said Oleg Yablokov, NTI expert on wireless communications. Components have also become more expensive, logistics costs have increased, a high key rate makes loans and installments less affordable, and high deposit rates distract funds from purchases, he added.
— One of the reasons for the cooling of the market remains the increase in the life of smartphones. If a few years ago many users changed their device every two to three years, today the update cycle often reaches four to five years," the press service of M.Video".
The increase in the average price is associated with several factors at once: firstly, Russians continue to keep money on bank deposits due to attractive rates and postpone updating equipment, which affects purchasing activity, they noted. Customers are increasingly choosing devices in the middle and upper price segments that remain relevant longer and have broader functionality, according to the company.
However, not all market participants are noticing a decrease in demand. Smartphones remain one of the fastest growing product categories on Wildberries, the RWB press service said. This is due to the significant expansion of the product range on the showcase, the growing trust in online purchases of complex and often expensive phones, and the arrival of new sellers on the platform. In January–June, smartphone turnover increased by 170% compared to the same period in 2025, according to the company.
In general, Megafon does not record a significant increase in prices for phones, the company said.
Oleg Yablokov predicts a further decline or stagnation in smartphone sales. According to his estimates, by the end of the year, the Russian market could reach 21-25 million devices. At the same time, price increases are likely to continue, and stabilization of the situation should be expected no earlier than 2027-2029, when new production facilities for the production of memory chips will be introduced in Asian countries.
Andrey Tarasov shares a similar point of view. According to his forecast, by the end of 2026, smartphone sales in physical terms may decrease by about 20% compared to 2025. At the same time, the demand structure will shift towards more affordable models, which will increase competition between manufacturers in the budget segment of the market.
"In the second half of the year, we expect a gradual recovery in demand due to the traditionally strong sales season, manufacturers' marketing activities and the release of new models," M.Video noted.
Additional support to the market may be provided by an increase in the availability of credit against the background of a decrease in the key interest rate and an increase in consumer demand, they believe. By the end of 2026, the market in monetary terms may show results close to the level of last year, and individual periods may demonstrate positive dynamics relative to 2025, according to M.Video.
Переведено сервисом «Яндекс Переводчик»
