Major Chinese smartphone makers are cutting their shipments to Russia due to the collapse of the ruble and Western sanctions, despite Beijing’s attempts to support Moscow.
Shipments from major Chinese smartphone makers Xiaomi, Oppo and Huawei have dropped by at least half since the conflict began, people familiar with the matter said. Chinese manufacturers make up about 60% of the Russian smartphone market. The aforementioned companies did not comment on this information.
“It’s politically ticklish to announce a complete suspension of sales in the Russian market, as Apple did,” a former Xiaomi executive said, referring to Beijing’s aid to Moscow. “However, from a business standpoint, it makes sense to look at what happens next.”
Chinese factories that make everything from smartphones to air conditioners have recently been counting on Russia to develop abroad, gaining a strong foothold in the country. Bilateral trade has topped $146 billion in the last 12 months, with China accounting for about 14% of Russian imports along with virtually all digital goods.
The sharp depreciation of the ruble against the dollar has made it difficult for Chinese companies to sell their goods in Russia without loss. “You have to set a new value every day to avoid losses,” said Ivan Lam, a Hong Kong analyst at consulting firm Counterpoint Analysis. Lam added that many Russian smartphone distributors have stopped placing new orders with Chinese manufacturers.
“It is extremely dangerous to work in Russia right now,” said a former Huawei executive based in Moscow.
Source: ixbt
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