(Reuters) – MTS, which is Russia’s largest mobile operator, said on Tuesday that it has started selling used and discounted smartphones. This gives Russian consumers cheaper options as inflation rises and Western brands stop shipping to Russia.
Early in March, Apple (NASDAQ:AAPL) stopped selling any products in Russia. It was one of many Western companies to do this after Russia sent tens of thousands of troops into Ukraine on February 24 as part of what it called a “special military operation.”
In the first two weeks of March, sales of Chinese smartphone brands in Russia doubled, according to the Kommersant newspaper.
MTS now sells smartphones from Chinese companies Huawei, Honor, and Xiaomi (OTC: XIACF) as well as South Korean company Samsung (KS: 005930) in its Moscow stores and online for up to 50% less than new devices.MTS said that they would offer more brands and sell them in more places.
Pavel Sukhovarov, head of MTS’s retail network development, said, “This is a good chance for our company to give customers another way to save money on good gadgets.” He said that customers could now buy used gadgets at low prices.
Inflation remains above 17 percent, making it difficult for Russians to purchase goods.However, the central bank says that the strengthening rouble and a drop in recently high consumer demand are helping to slow things down.
MTS is selling devices at a discount, like ones that were returned within two weeks or had a problem with the packaging. These devices come with a 90-day warranty.
The telecom company reported last week that its first-quarter net profit fell 76.2 percent year on year to 3.9 billion roubles ($67.83 million). It said that this was partly because interest rates went up.
(1 dollar = 57.5000 roubles)
