LATAM smartphone market grew 1.7% in Q4 2019, but slightly decreased overall in 2019.
Motorola’s shipments grew more than 20% during 2019.
New Delhi, Hong Kong, Seoul, London, Beijing, San Diego, Buenos Aires – February 28th, 2020
Smartphone shipments slightly decreased in 2019 due to a further slowing in the replacement rate. Despite the flatlining market, the top three brands all increased their volume in the region. This led to increased brand concentration. The top three brands represented 66.5% of the market – more than 5% more than in 2018.
“Motorola led the growth among top-performing brands, with more than 20% growth in volume, YoY. Increasing participation in markets where Motorola has not traditionally been successful such as Colombia, Mexico and Chile, added to its growth. It also focused on a few models, in particular, the E series that has enjoyed success with an ideal price-to-feature ratio”, commented Counterpoint Research’s Senior Analyst, Tina Lu.
Commenting on price band performance, Tina highlighted: “The slow-down in units was not accompanied by an increase in ASP. During 2019, we saw both the ultra-low (U$S499) price bands losing share, while the mid-price range U$S 100 - U$S250 gained share. The Samsung A-series, Motorola E and G series and Huawei Y and P Lite series, led this mid-tier growth. The three brands were involved in fierce competition in this key price band throughout the year”.
Exhibit 1: Smartphone Shipment Market Share 2019
Source: Counterpoint Research Market Monitor Q4 2019
Parv Sharma, Research Analyst, commented on Q4 2019 performance: “Volume increased slightly during Q4 2019, as consumers responded to promotions over the holiday season, but not all countries had the same results compared to last year”.
Mr. Sharma further added: “During Q4 2019 Xiaomi’s shipments grew 114% compared to the same period in 2018. This is the first time since entering the region that it has entered the top five brands. However, this growth is not without controversy, as the Brazilian Association of Electricity and Electronic Industry has claimed that Xiaomi products are entering Brazil through grey channels. Although this situation is not entirely Xiaomi’s fault, it is its responsibility to try to prevent it. Xiaomi is now taking measures and has announced that it plans to partner with a local manufacturer to start producing smartphones locally.”.
Exhibit 2: Smartphone Shipment Market Share 2019 Q4
Source: Counterpoint Research Market Monitor Q4 2019
Key Takeaways
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The Market Monitor research is based on sell-in (shipments) estimates based on vendor’s IR results, vendor polling triangulated with sell-through (sales), supply chain checks and secondary research.
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