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Experts: Russia will increase prices for smartphones

Эксперты: Россию ждет повышение цен на смартфоны

Mandatory installation of Russian applications in smartphones, laptops and other devices will entail additional costs, which, most likely, will pass on to buyers.

The state Duma in the third reading adopted a law banning the sale of smartphones, tablets, laptops, TVs and other devices without pre-installed Russian applications. Then the law must pass the examination in the Federation Council and the signature of the President, to July 1, 2020 to enter into force. The list of required software will be the government of the Russian Federation.

After the law comes into force, all shops are obliged to sell smartphones and other devices preloaded with only domestic software. Those who violate this rule will receive a fine from 30 000 to 200 000.

Possible problems

Experts believe that the new law will cause many difficulties for manufacturers and sellers. The law does not specify exactly who needs to install additional software in the device — it just has to be there. It is unlikely that the stores will take on this responsibility, because it is too expensive to manually install the apps in every smartphone sold. Therefore, most likely, national will put the manufacturer at the factory or distributor which is engaged in the official delivery of goods to Russia.

In any case, the extra soft would complicate the production and supply of smartphones, laptops and other devices in Russia. And it will entail increase in prices — and this is likely to shift to the buyers. This is the opinion of Anton Guskov, a representative of Association RATEK:

Manufacturers will have to lay the cost ON in the cost of gadgets. It’s unclear exactly how much prices would rise, because the unknown number of applications, and what to be

Guskov believes the law is harmful to the market and consumers. In addition to problems with prices, you may experience other difficulties — the requirements of the law may become impossible for some manufacturers, and they will have to leave the market. For example, Apple vs installing third party software in their devices, and the company makes no exceptions for individual countries. So nobody knows what will happen with the iPhones in Russia.

The price increase is predicted Denis Kuskov, General Director of the Agency TelecomDaily. In his commentary Hi-Tech he said that the implementation of the law will result in additional expenses for manufacturers.

This will cause the growth of prices for, say, 3%. Why do people have to increase the payment for the device for those applications that do not need it?

Denis Kuskov

the representative of the Association of trading companies and manufacturers of electrical household and computer equipment RATEK

What really will make manufacturers and stores after 1 July next year — nobody knows. The government has not yet compiled a list of mandatory software, and market participants do not understand how to comply with the requirements of the law. It is likely that prior to the entry into force will be a law to simplify and reduce requirements.

Consumers can only wait and monitor changes in the market.


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