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Telefónica España puts devices at the center of its growth plan

Richard Reid RUSSPAIN.com

Post by Richard Reid

Telefónica España puts devices at the center of its growth plan RUSSPAIN.com © russpain.com
Telefónica España puts devices at the center of its growth plan © russpain.com

Telefónica España will create a dedicated hardware division inside B2C on 1 October 2026. The unit will manage the device business across products, sales, logistics and finance as Movistar expands beyond smartphones.

Telefónica España is giving its device business its own growth operation. The company will create a Hardware and Devices Directorate within B2C on 1 October 2026. Alberto Ruano will lead it after leaving his role as Lenovo's general manager for Spain and Portugal. Telefónica España said the change will bring its device business under one structure.

The new directorate will handle the business across the board. Its work will include the product portfolio, talks with manufacturers, offer design, commercial strategy, sales, logistics, procurement, supply chain management and financial oversight. Ruano will report to Óscar Candiles, Telefónica España's Chief Revenue Officer, and join the company's Management Committee.

Telefónica says the new division will oversee not only the device portfolio and vendor negotiations, but also commercial strategy and financial control across the business.

Telefónica España

The numbers explain the change.

Device sales rose 10% in the first nine months of the year compared with the same period of 2025. Telefónica España sold 900,000 devices between January and August. That growth has given the company reason to give the business its own structure and pursue a larger role for it across the group. Demócrata, Cinco Días and Expansión all reported the same appointment and organisational change. Their reports describe a move to bring Telefónica's device activities together, rather than build a narrow handset unit.

Movistar is also selling more than mobile phones. Its catalogue now includes 800 device references. They cover smartphones, tablets, smartwatches and televisions, along with home entertainment equipment, game consoles, laptops, activity bracelets and small and large appliances. The company says 42% of the devices sold so far this year came from categories other than smartphones. That is six percentage points more than a year earlier.

Cinco Días and Expansión describe the reorganisation in the context of Telefónica’s effort to use devices as a tool for customer retention and revenue growth, not simply as one-off phone sales. The reported expansion of the catalogue beyond smartphones is part of that commercial logic.

Cinco Días и Expansión

Several of these categories are growing faster than the main handset business. Smartwatch unit sales rose 29%. Tablet sales also increased 29%, televisions grew 26% and small and large appliances advanced 28%. Borja Ochoa, president of Telefónica España, said customers are increasingly coming to Movistar for technology across the home, not just for a mobile phone.

The way customers pay for and replace devices is changing too. Movistar Swap launched in September 2025. It lets customers use a device for a monthly fee, then choose whether to exchange it for the latest model or keep the one they have. The choice becomes available from month 24 for smartphones and from month 36 for some laptops and tablets. Movistar collects the old equipment, provides the replacement and checks the returned device for refurbishment or recycling. Cinco Días and Expansión have named Movistar Swap as one factor behind the wider device strategy.

The service gives Telefónica a role beyond the first sale. Financing, replacement, logistics and the handling of returned equipment sit within the same offer. The new directorate will bring those activities under one management line.

The appointment also brings in an executive with direct hardware experience. Ruano has described his task as using Telefónica's daily relationship with millions of households and companies to make technology available through the right product and conditions. The earlier takeover report concerns a different sector. Telefónica's decision is more direct: devices are no longer being treated as a secondary retail category.

Movistar customers are buying a wider range of products, and Telefónica is reorganising around that shift. Non-smartphone products already account for 42% of sales, while the catalogue has reached 800 references. The new directorate will show whether that wider range can turn current sales growth into a lasting part of Telefónica's consumer business.

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