Russian Telephone Operator, MTS, Chooses To Sell Used Cellphones To Face Inflation And Technology Embargo

MTS announced on Tuesday, May 23 that it has started selling discount and used smartphones. (photo: doc. pixabay)

JAKARTA - Russia's largest mobile operator MTS announced on Tuesday, May 23 that it has started selling discount and used smartphones. They offered Russian consumers a cheaper alternative due to inflation and Western brands suspending shipments.

Apple stopped all sales of products in Russia in early March. It is one of many Western companies to distance themselves from Moscow since sending tens of thousands of troops to Ukraine on February 24 in what it calls a special military operation.

Sales of the Chinese smartphone brand in Russia doubled in the first two weeks of March, the Kommersant newspaper reported at the time.

Now, MTS offers smartphones from Chinese brands Huawei, Honor and Xiaomi, as well as the South Korean manufacturer Samsung, up to 50% cheaper than new devices in Moscow stores and online. MTS said the brands it offered and its sales locations would be expanded.

"This is a good opportunity for our company to offer consumers an additional way to save on the purchase of quality gadgets," said Pavel Sukhovarov, head of development for retail network MTS, who said consumers can now buy used gadgets at low prices.

Inflation hovers above 17%, eating into Russia's purchasing power, although the central bank said the ruble's strength and recent decline in consumer demand helped put the brakes on.

The discount devices that MTS sells include models that are returned within two weeks or have packaging defects, and will come with a 90-day warranty.

The telecommunications company last week reported a 76.2% year-on-year drop in first-quarter net profit to 3.9 billion rubles (Rp1.4 trillion) which was partly due to higher interest rates.