The smartphone market in Latin America grew by 26% year-on-year in the first quarter of 2024, a very good figure that contrasts with 9% drop worldwide According to the same advice, canalis.
This is the third consecutive quarter of double-digit growth in the region, a momentum led by the lower-mid range end of the market for more expensive mobile phones supported by generative AI functions.
Why is this important?. Latin America is emerging as a key market for manufacturers: there is huge growth potential while sales in the rest of the world are declining. And there are manufacturers who flex their muscles ahead of what they can achieve in other price-sensitive markets.
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Key statistics.
- Samsung and Motorola (along with Lenovo) continue to dominate the market, with 32% and 17% market share respectively…
- …but those sales were down compared to the same quarter in 2023.
- Those that have grown are Xiaomi (+45%), Transsion (+215%) and Honor (+293%).
- 82% of smartphones sold cost less than $400. Only 7% exceeded $800.
Xiaomi closes a podium where it is increasingly close Transfer And respect, which has grown spectacularly. Transition is a Chinese conglomerate of brands like Tecno, iTel and Infinix.
And they did so, above all, at the expense of the two leaders in the region, Samsung and Motorola/Lenovo, which dropped several points from one year to the next.
As we said, it continues to be a market characterized by the low and low-mid range: more than a fifth of smartphones sold are priced below $400.
Wearables, opportunity. Several manufacturers, as Canalys highlights, are expanding their ecosystem with body devices such as smart watches, activity bracelets or TWS headphones to differentiate themselves, build customer loyalty and increase their revenue.
It’s an opportunity we’ve been more aware of over the years in other regions, but it’s less rooted in Latin America, where adoption of these devices per smartphone sold is still low.
The challenge of AI. The AI functions that set the pace for high ranges and stars in marketing campaigns are not currently designed to reach these low ranges.
- This can lead to frustration for customers, who discover through marketing features they cannot use on their devices.
Strong sales growth in Latin America demonstrates the appetite for smartphone innovation, but capitalizing on this potential requires shifting the development of generative AI to entry-level models.
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