Top

Insights Tag: LG share

LATAM Smartphone Shipments Fall 36% YoY in Q2 2020 on COVID-19

  • Online sales more than doubled in the region.
  • Motorola’s share increased by 7.1 percentage points.
  • Smartphone shipments in LATAM declined 19.5% QoQ.

New Delhi, Hong Kong, Seoul, London, Beijing, San Diego, Buenos Aires – August 31, 2020

Smartphone shipments in the LATAM market continued to fall during Q2 2020, showing a drop of 19.5% QoQ and 36% YoY, according to the latest research from Counterpoint’s Market Monitor service. However, the shipments started recovering after hitting a record low in April due to the COVID-19 lockdowns.

Commenting on the Q2 2020 LATAM market OEM performance, Senior Analyst Tina Lu said: “In Q2 2020, we experienced further market concentration. Large brands grabbed shares from the smaller ones. As a result, ‘others’ volume suffered the biggest impact, declining to around half of last year’s level. Top five brands represented more than 81% of the shipments in Q2 2020, a 4.8 percentage points increase compared to Q2 2019. Motorola and Xiaomi drove this growth, together registering more than 10 percentage points increase in their share. Huawei, on the other hand, lost 4.8 percentage points, despite its global leadership.”

 

Exhibit 1: Smartphone Shipment Market Share, Q2 2020

Counterpoint LATAM Smartphone Shipment Market Share Q2 2020

Source: Counterpoint Research Market Monitor, Q2 2020

 

Commenting on the handset demand, Research Analyst Parv Sharma said: “Online sales more than doubled in the region. But they were low before the lockdown. Online events such as the ‘Hot Sales’ event in Mexico increased online sales share. Some other events also stimulated consumption. In May, it was Mother’s Day across many countries while Colombia had the ‘No VAT day’ in June.”

On the average selling price (ASP), Lu said: “The lockdowns also drove currency depreciation against the US dollar in most LATAM markets. Hence, most mobile devices saw price increases, placing additional pressure on the ASP. All top OEMs’ ASPs were impacted. Samsung was the most resilient OEM as its flagship model sales remained unaffected compared to the same quarter last year. On the other hand, Huawei ASP had the highest YoY drop. It lacks competitive models in the high and premium segment, affected by the ban on having Google Play Store on its devices.”

Exhibit 2: Smartphone ASP Decline by Brand, Q2 2019 vs Q2 2020

Counterpoint LATAM Smartphone ASP Decline by Brand, Q2 2019 vs Q2 2020

Source: Counterpoint Research Market Pulse, Q2 2020

 

Key Takeaways

  • Motorola’s share increased by 7.1 percentage points compared to the same quarter last year. This is almost 48% growth YoY.
  • Motorola increased its share in most markets of the region. Mexico was the main booster. However, Brazil is still Motorola’s most important market in terms of volume.
  • Samsung continues to be the absolute market leader in LATAM.
  • It was quick to react to the market movement. It revived its Galaxy J2 Core model production. This model was in line to be phased out after the introduction of Galaxy A01. However, now it has become one of the bestselling models in the region
  • However, Samsung lost its leadership crown in Peru while it was somewhat challenged by Motorola in Mexico. Brazil remains its biggest market in terms of volume.
  • Huawei’s performance through the quarter had its ups and downs. In April, it recaptured the second spot in the region after almost one year of remaining third. But its share declined in the following months.
  • Huawei’s volume declined 63% YoY, impacted by the lack of components due to a trade ban, and the overall regional crisis.
  • Xiaomi was the only brand that saw a YoY volume increase. While its share more than doubled YoY, this growth was not without controversy. Its biggest market, Brazil, had most of the volume entering unlawfully through Paraguay. This fact has invited much criticism in Brazil.

The Market Monitor research relies on sell-in (shipments) estimates based on vendor’s IR results, vendor polling triangulated with sell-through (sales), supply chain checks and secondary research.

The comprehensive and in-depth Q2 2020 Market Monitor is available for subscribing clients. Please feel free to contact us at press(at)counterpointresearch.com for further questions regarding our latest in-depth research and insights, or for other press enquiries.

Background:

Counterpoint Technology Market Research is a global research firm specializing in Technology products in the TMT industry. It services major technology firms and financial firms with a mix of monthly reports, customized projects and detailed analysis of the mobile and technology markets. Its key analysts are experts in the industry with an average tenure of 13 years in the high-tech industry.

Analyst Contacts:

Tina Lu

Parv Sharma

Peter Richardson

Follow Counterpoint Research
press(at)counterpointresearch.com   

      

LATAM Smartphone Market Falls YoY For The Fourth Consecutive Quarter in Q2 2019

Samsung is the top smartphone brand in the LATAM market with 42.3% share.

Motorola ships more than Huawei to become the second-largest smartphone brand once again.

Samsung, Motorola, and Huawei together have 71% market share.

New Delhi, Hong Kong, Seoul, London, Beijing, San Diego, Buenos Aires – August 22nd, 2019

Smartphone shipments in Latin America fell 3.3% year-on-year (YoY) during Q2 2019, according to the latest research from Counterpoint’s Market Monitor service. This is the fourth consecutive quarter that smartphone shipments have fallen on a YoY basis. Sequentially, shipments increased marginally by around 1%.

As the market shrinks, local brands are getting squeezed and losing out to international and Chinese players. The market is more concentrated than ever, and this trend is increasing. Within just a year, the market share of the top three brands in LATAM has grown 10 percentage points. Samsung, Motorola, and Huawei, the top three brands, now account for 71% of the total market.

Commenting on the Huawei’s performance in LATAM, Counterpoint’s Senior Analyst, Tina Lu, highlighted, “Huawei started the quarter shipping its highest ever number of smartphones.  Its volume outpaced that of Motorola as it became the second-largest brand in LATAM.  However, the US’ trade ban on Huawei, announced in May, impacted demand. It affected its shipments, especially from June onwards.  Looking forward, Huawei’s position in LATAM could remain limited to a single-digit share if the trade ban continues. Even if the trade ban is lifted during the next couple of months, it will take some time to pick-up the growth pace it enjoyed in LATAM during most of H1 2019, unless it gets serious about setting up an assembling/manufacturing facility in Brazil.”

Parv Sharma, Research Analyst, added, “Samsung and Motorola have both been the biggest winners of Huawei’s drop. Samsung regained leadership in each of the big markets of the region after being challenged in some markets by Huawei. Samsung’s performance was due to price cuts for the J series and the launch of the new A series. It is also spending massively on advertising across all channels. This combination has led to its highest ever market share. Meanwhile, Motorola once again became the second-largest player in the region. It had double-digit YoY growth, as it managed to stay a strong number two in both Brazil and Argentina.”

Exhibit 1: LATAM Smartphone Market Share

LATAM Smartphone Market ShareSource: Counterpoint Research Market Monitor Q2 2019

Commenting on the price-band trends in LATAM, Tina Lu, highlighted, “LATAM is still a low-end smartphone market, almost 57% of the smartphones sold cost less than US$199, although this share is declining. People are spending slightly more on a smartphone, and as a result, the beneficiary is the US$200-US$299 price-band. Huawei and Motorola have been the main drivers of this increase. Motorola discontinued its C series at the end of last year and left only the E series in the entry-level segment and the G series as its mid-range device. This has also led to an average selling price (ASP) increase.”

While the <US$99 price-band remains the largest in LATAM with a 35% market share, volumes in this price-band declined 11% YoY in Q2 2019. The mid-range price-band (US$100 – US$199) has grown 13% compared to the previous year, fuelled by Motorola, Huawei, and to a lesser extent, Nokia HMD. The mid-high price band (US$200 – US$299) was the fastest-growing segment mainly due to the volumes of the Huawei P Lite and Samsung A7, after price drops. Volumes in the price-bands above US$300 decreased. Samsung is the leading brand across all price-bands except the US$300 -US$399 price-band, where it trails Huawei.

Exhibit 2: LATAM Smartphone Price-Band Market Share

LATAM Smartphone Price-Band Market ShareSource: Counterpoint Research Market Monitor Q2 2019

Market Summary:

  • Samsung’s volumes increased at a double-digit rate on a YoY basis. More than four out of 10 smartphones shipped in the region during Q2 2019 were from Samsung.
  • Motorola’s YoY growth was due to its success on the open channel as well as Argentina and Brazil. It has a good understanding of the open channel and benefited from the fact that the open channel that has grown fastest in LATAM over the last three years.
  • LG continues to decline, both YoY and quarter-on-quarter (QoQ). Brazil is the only market where it is still a strong number three. In some LATAM markets, such as Mexico and Colombia, it is not even in the top five best-selling brands.
  • Apple’s volumes decreased in most LATAM markets. But the worst-performing markets were Brazil, Chile, and Mexico. The XR and XS models are too expensive for LATAM while the 7 and 8 are not able to lure users.
  • Alcatel had a slight increase over the previous quarter and YoY. The brand had a major restructuring in the second half of last year. Its sales are improving slightly in most LATAM markets, especially in Brazil, Colombia, and Mexico.

The comprehensive and in-depth Q2 2019 Market Monitor is available for subscribing clients. Please feel free to contact us at press(at)counterpointresearch.com for further questions regarding our in-depth latest research, insights or press enquiries.

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.

Analyst Contacts:

Tina Lu

Parv Sharma

Peter Richardson

Follow Counterpoint Research
press(at)counterpointresearch.com

You can also visit our Data Section (updated quarterly) to view smartphone market share Globally and from the USA, China and India

LATAM Smartphone Market Reached Highest Ever ASP in 2Q18

Growth during the quarter was led by OEMs’ aggressive sell-in.

   New Delhi, Hong Kong, Seoul, London, Beijing, San Diego, Buenos Aires –August 21st, 2018

According to the latest research from Counterpoint’s Market Monitor service, in Q2 2018 the LATAM smartphone shipments grew 2% YoY in volume and 8% in value. Chile and Mexico were the markets that led the growth, driven in part by Huawei and Motorola.

Commenting on the findings Senior Analyst, Tina Lu, said, “LATAM’s smartphone sell-in grew a marginal 2%, despite the economic volatility created by political turbulence. Motorola and Huawei led the volume growth with high double-digit growth, benefiting from the aggressive launch of new products in the mid-range (USD $100-$250) segment.”

Adding further, Tina said, “Consumers in Latin America are slowing down in their replacement rate but investing more money per purchase. Despite the multiple devaluations that most LATAM currencies have experienced during Q2 2018, the smartphone average selling price (ASP) reached USD187, around an 8% YoY increase.  This was the region’s highest ASP ever. LATAM device prices are highly sensitive to currency fluctuations, as most of the countries in the region import devices, and those that require local manufacturing, still depend highly on sourcing parts internationally. Price band growth has been polarizing at both ends of the price spectrum.”

 Exhibit 1: LATAM Smartphone Shipment Share by Brands

LATAM Smartphone Shipments (% Share)

Source: Counterpoint Research: Quarterly Market Monitor Q2 2018

Commenting on the region’s brand evolution, Research Analyst, Parv Sharma, said, “Consumers in the LATAM region need to trust the brand before adopting it. So, this leads to quite a concentrated market with the top five brands, representing almost three-quarters of all the smartphones shipped. These brands have all invested a great deal of resources both in terms of money and management time, within the region, to earn local consumer trust. Huawei enjoyed a 43% YoY growth, the biggest surge among the top five brands. Its success is a result of the company consistently building brand awareness in the region. It has also increased its presence in America Movil. But the channel is quite stacked with Huawei inventory.  Motorola also had double digit volume increase, but its volume growth was leveraged by the C series which took a toll on its ASP.”

 Exhibit 2: LATAM ASP evolution: Q2 2017 vs Q2 2018

LATAM Smartphone ASP Growth by Key Brands
Source: Counterpoint Research: Quarterly Market Monitor Q2 2018

 Market Summary:

  • Samsung captured more than 36% of the LATAM market. It was, once again, the absolute leader in the market, but it lost share YoY.
  • Despite the decline in share, Samsung had a 25% increase in ASP, thanks to increasing midrange sales.
  • Motorola reached 12.4% market share. The refreshed models in the E and G series have increased Motorola’s overall sell-in volumes. However, its Moto C is still the best-selling model and this success affected its ASP, driving it to decline 33% YoY.
  • Huawei reached 11.8% market share. It was third in the market, but just 0.8pp behind Motorola.
  • Huawei’s ASP increased 32% YoY. It is the brand with the highest growth amongst the top selling brands.
  • LG had the biggest YoY drop; a decline of more than 26%. It is the only brand in the top five chart that had flat YoY movement on ASP.
  • Apple remained almost flat with 4% market share, though it had more than 10% growth in ASP.
  • Apple’s ASP growth was driven by the launch of iPhone X which was offset by strong sales of iPhone 6 in the region.

The comprehensive and in-depth Q2 2018 Market Monitor is available for subscribing clients. Please feel free to contact us at press@counterpointresearch.com for further questions regarding our in-depth latest research, insights or press enquiries.

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.

Analyst Contacts:

Tina Lu
+54 91160411221
tina@counterpointresearch.com

 

Parv Sharma
+91 974-259-6030
parv@counterpointresearch.com

 

Peter Richardson
+44 791-723-1934
peter@counterpointresearch.com

 

Follow Counterpoint Research
press(at)counterpointresearch.com

Coverage

Insights

Social media

Contact us

Copyright ⓒ Counterpoint Technology Market Research | All rights reserved

Term of Use and Privacy Policy

Counterpoint Technology Market Research Limited

Registration

In order to access Counterpoint Technology Market Research Limited (Company or We hereafter) Web sites, you may be asked to complete a registration form. You are required to provide contact information which is used to enhance the user experience and determine whether you are a paid subscriber or not.
Personal Information When you register on we ask you for personal information. We use this information to provide you with the best advice and highest-quality service as well as with offers that we think are relevant to you. We may also contact you regarding a Web site problem or other customer service-related issues. We do not sell, share or rent personal information about you collected on Company Web sites.

How to unsubscribe and Termination

You may request to terminate your account or unsubscribe to any email subscriptions or mailing lists at any time. In accessing and using this Website, User agrees to comply with all applicable laws and agrees not to take any action that would compromise the security or viability of this Website. The Company may terminate User’s access to this Website at any time for any reason. The terms hereunder regarding Accuracy of Information and Third Party Rights shall survive termination.

Website Content and Copyright

This Website is the property of Counterpoint and is protected by international copyright law and conventions. We grant users the right to access and use the Website, so long as such use is for internal information purposes, and User does not alter, copy, disseminate, redistribute or republish any content or feature of this Website. User acknowledges that access to and use of this Website is subject to these TERMS OF USE and any expanded access or use must be approved in writing by the Company.
– Passwords are for user’s individual use
– Passwords may not be shared with others
– Users may not store documents in shared folders.
– Users may not redistribute documents to non-users unless otherwise stated in their contract terms.

Changes or Updates to the Website

The Company reserves the right to change, update or discontinue any aspect of this Website at any time without notice. Your continued use of the Website after any such change constitutes your agreement to these TERMS OF USE, as modified.
Accuracy of Information: While the information contained on this Website has been obtained from sources believed to be reliable, We disclaims all warranties as to the accuracy, completeness or adequacy of such information. User assumes sole responsibility for the use it makes of this Website to achieve his/her intended results.

Third Party Links: This Website may contain links to other third party websites, which are provided as additional resources for the convenience of Users. We do not endorse, sponsor or accept any responsibility for these third party websites, User agrees to direct any concerns relating to these third party websites to the relevant website administrator.

Cookies and Tracking

We may monitor how you use our Web sites. It is used solely for purposes of enabling us to provide you with a personalized Web site experience.
This data may also be used in the aggregate, to identify appropriate product offerings and subscription plans.
Cookies may be set in order to identify you and determine your access privileges. Cookies are simply identifiers. You have the ability to delete cookie files from your hard disk drive.