Ukrainian consumers are increasingly prioritizing not just the lowest price for electronics, but also the purchasing conditions, warranty, and service. Consequently, the authorized smartphone market is gradually strengthening its position, although the unofficial segment still remains significant.
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According to estimates from the leading distributor of technology and electronics, ASBIS-Ukraine, following the full-scale invasion, the official smartphone market has contracted from 4.5 million to 3 million devices annually. However, when factoring in the unofficial segment, the actual volume could be around 3.8 million devices. This implies that approximately 800,000 smartphones are sold outside authorized channels each year, as stated by Ivan Pavlyk, CEO of ASBIS-Ukraine, in an interview with Forbes.
The most noticeable changes are evident with iPhones. While the share of unofficial iPhone sales was estimated at 80% last autumn, it has now dropped to 60–65%.
“The trend is positive, but it’s still a substantial amount,” noted Ivan Pavlyk.
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The primary reason for the popularity of the “gray” market used to be straightforward – a lower price. However, this advantage is gradually diminishing. The authorized channel is increasingly competing not only on device cost but also through warranty, manufacturer service, trade-in programs, cashback offers, installment payments, and other financial instruments.
Another significant factor is the speed of new product availability. According to Pavlyk, whereas new smartphone models, particularly from Apple, used to arrive in Ukraine a month to six weeks after their global launch, the Ukrainian market now receives new releases practically simultaneously with most European countries. This reduces the unofficial channel’s ability to profit from early access to scarce models.
A further contributing factor is financial accessibility. Data from ASBIS-Ukraine indicates that over half of Apple device sales in Ukraine today are facilitated through credit and partner financial programs. For consumers, this means that when choosing a device, not only the total price but also the comfort of the monthly payment is becoming increasingly important.
Therefore, installment plans, phased payments, or trade-in options can influence a buyer’s decision: an officially sourced device with a warranty and service becomes more price-competitive with an unofficial offer, while simultaneously providing greater post-purchase protection.
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“Consequently, the arguments favoring ‘gray’ or ‘black’ market goods are significantly decreasing,” explained Ivan Pavlyk.
ASBIS-Ukraine believes that a mature electronics market should be built on service, availability, innovation, and customer trust, rather than on schemes or tax loopholes. For consumers, this translates to the opportunity to acquire a quality product under transparent and convenient conditions, and for businesses, it means competing on real value rather than solely on the lowest price.
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