The Latin American smartphone market recorded a fourth consecutive quarter of growth after being fuelled by affordable devices.
Analyst house Canalys detailed in its latest report the LATAM market shipped 33.5 million units in Q2, a 20% year-on-year surge as consumers scooped up devices costing less than US$200.
Samsung was the leading vendor with 10.2 million units in the quarter a growth rate of 9%, driven by its budget A-series. Xiaomi was second for the first time in LATAM as growth surged 35% to 6.2 million units. Motorola came third with 5.7 million, followed by Transsion and Honor with 3.2 million and 1.4 million units respectively.
Canalys Senior Analyst Miguel Pérez smartphone vendors had been pushing large investments, refreshing devices and offering upgrade incentives in LATAM markets hence the recent growth. He added average selling price had declined 12% year-on-year, its lowest point since Q2 2021 due to the push from vendors.
“Fierce competition among many vendors is making the consumer the current winner in the market. However, vendors must find a balance between short-term volume gains and long-term strength factors such as operational profitability and brand positioning,” said Pérez.
Looking ahead, Perez noted smartphone demand in the region could be impacted due to market saturation, an uncertain economic landscape and the US presidential election.
“If not managed well, the slowdown can compromise both vendors’ and the sales channel’s long-term ambitions. For all industry players, it will be crucial to have effective inventory management, strict replenishment controls and plan resource allocation far in advance,” said Perez.
