Mobile Phones in Romania

2021 DEVELOPMENTS

Industry players embrace online in response to the ongoing COVID-19 pandemic and the closure of bricks and mortar stores and extend warranties

Following the 2020 spring lockdown and the closure of bricks-and-mortar stores, industry players moved their business strategies online. Both retailers and brand owners focused on their online sales, which led to strong growth in 2020, with this set to continue into 2021.

Growing popularity of smartphones thanks to improving features

Smartphones are increasingly popular, supported by a growing number of applications and improving features including high-quality cameras. These lightweight devices continue to address a multitude of consumer needs, such as communication, media consumption, navigation, gaming and activity/sport/health tracking.

Samsung Electronics retains lead while Vivo officially launches in Romania and introduces three new models in 2021

Samsung Electronics Romania is expected to remain the clear leading player in smartphones, and mobile phones overall, in 2021. The Samsung brand retains high consumer recognition and trust in Romania.

PROSPECTS AND OPPORTUNITIES

Ongoing premiumisation as Romanians embrace the latest innovation and new technology becomes available

Despite lingering economic uncertainty in the wake of COVID-19, the already very high penetration rate for smartphones is expected to rise over the forecast period, while the replacement cycle is set to fall. The pandemic made many consumers realise the need for a reliable device for working, communicating or entertainment consumption.

Intensifying competition in smartphones particularly from Chinese brands that appeal to low- and middle-income demographics

Despite an anticipated rise in disposable incomes in the wake of the pandemic, value for money Chinese brands such as Huawei, Oppo, Vivo or Xiaomi will continue to gain ground, as many consumers will still be unable to afford premium brands. Many such consumers are likely to wait for promotions and discounts and other sales events, such as Black Friday, before purchasing upgrades.

Innovation extends to the mid-priced segment as industry players attempt to attract a wider audience with lower priced products

Local players are predicted to continue to struggle to compete with large international brands, especially as some consumers will move towards more premium models. They are also expected to come under further pressure at the other end of the market from the inexorable encroachment of value for money and lower-priced Chinese brands.