Mexico’s smartphone market saw 13.3% YoY and 14.2% QoQ growth in Q3 2021.
Motorola led the market with a 23.9% share.
Buenos Aires, New Delhi, Hong Kong, Seoul, London, Beijing, San Diego – December 23, 2021
Mexico’s smartphone market saw impressive growth during Q3 2021 even as many LATAM markets were heavily impacted by the ongoing component shortages. The country’s smartphone shipments grew 13.3% YoY and 14.2% QoQ in Q3 2021. The same quarter last year had seen COVID-19 affecting the region’s smartphone market.
Commenting on the market dynamics, Principal AnalystTina Lu said, “Mexico’s market is the second largest in Latin America, and its TAM (total addressable market) is getting closer to Brazil. Although the Mexican population is only around 60% of that of Brazil, its TAM is close to 80% compared to Brazil. Mexico is an operator-driven market but still is one of the most competitive.”
Lu added, “Mexico is often the first market chosen by brands to enter LATAM. This helps the country’s consumers to access a variety of brands and models. This also results in a low-concentration market that allows many brands to have similar shares. Motorola is the current leader in this competitive market. The brand had an extraordinary performance for most of 2021. Mexico is the only market in which Motorola is the leader.”
Source: Counterpoint Research Market Monitor, Q3 2021 | Note: Xiaomi includes POCO
Market Summary
Motorola has a big portfolio of affordable smartphones (<$150 price range). It also benefits from having enough supplies to stay as the Mexican market leader. Besides, Motorola has strong branding and is one of the strongest in the Mexican open channel.
Samsung, which was the leading brand in 2020, experienced its biggest YoY share and volume drop in Q3 2021 due to production disruption at its Vietnam factories and stiff competition from new entrants.
OPPO saw the biggest YoY growth. Its market share grew more than five times. OPPO is the most successful among the Chinese brands that entered the region last year. OPPO was in Mexico for a short period in 2017 and is now benefitting from the brand-building undertaken then.
ZTE almost doubled its share YoY. It benefited partly from Huawei’s woes. ZTE is the most operator channel-driven OEM in the region.
Xiaomi more than doubled its share YoY but it was still fifth in the market. Its growth has not been as flashy as in other markets. Xiaomi needs to work more on brand-building.
Huawei was once the leader of the Mexican market but is now in the ninth position. The brand’s woes have translated into the successful entry of other Chinese brands in the region.
Background
Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.
New Delhi, Mumbai, Hong Kong, Seoul, London, Buenos Aires – July 28, 2016
Global smartphone demand returned to a modest positive growth after a flattish first quarter as the seven out of the top ten smartphone brands were Chinese, together capturing a third of the smartphone market.
According to the latest research from Counterpoint’s Market Monitor service, the global smartphone shipments grew 3% in Q2 2016.
Commenting on the findings, Tarun Pathak Sr. Analyst at Counterpoint Research said “First half of 2016 was challenging for the overall smartphone industry as growth in in key countries across both developed and emerging markets remain stagnant. The slowing smartphone demand from double digit rate end of last year to a dramatic drop of low single digit this year can be attributed to weaker economic climate in many emerging countries as well as slowing upgrade cycles in developed markets. Furthermore, the Taiwanese earthquake in February also drove key component shortages which slowed down supply almost through May. As a result, many of the incumbent and smaller brands saw growth slowing down though offset by the Chinese brand trio Oppo, Vivo and Huawei which grew faster than the rest together capturing almost fifth of the smartphone market, highest ever for the first time.”
Commenting on strong performance for Chinese brands, Research Director, James Yan noted, “Oppo and Vivo growth story has surprised everyone in the industry, however, this has been as a result of years of investment in building strong offline distribution channels, competent R&D team, slicker product portfolio and aggressive marketing and promotions. The BBK group which owns both Oppo and Vivo is technically the world’s third largest smartphone OEM shipping more than 39 million units during the quarter, slightly behind Apple.”
Tina Lu, Sr. Consultant, further commented, “The smartphone industry revenues however remained flat due to growth in Chinese brands such as Oppo and Huawei pushing mid-tier and affordable premium models. whereas, Apple and Samsung saw its smartphone ASP decline 13% and 10% annually respectively dragging down overall smartphone industry revenues. Samsung & Apple together captured more than half of smartphone industry revenues though down from two-thirds a year ago, due to significant growth from Huawei, Oppo and Vivo which almost doubled their revenue share in just one year.”
Market Summary
Smartphone shipments reached 360 million units in Q2 2016 with YoY growth of 3%.
4 out of 5 mobile phones shipped during the quarter were smartphones
After a steep sequential decline in Q1’16 the sell-in grew sequentially by 7%.
Top 10 brands contribute to almost 70% of the smartphone volumes in Q2 2016.
However, sell-in was tepid during late Q2 as unit production was reduced after weak demand signals from markets like Latin America but high growth markets in SEA registered healthy sell-in during Q2 2016 and supply constraints for key components from Taiwanese suppliers.
The quarter was dominated by Chinese brands which continue to scale their operations both in their domestic market and beyond.
Chinese brands like Huawei, Oppo & Vivo continue to scale fast and now setting up benchmark in mid to high end flagship segment on account of their impressive designs and aggressive pricing.
Exhibit 1: Global Smartphone Shipments Annual Growth Rates (%)
Samsung led the smartphone market by volume with a market share of 21%. Its smartphone shipments increased 3% YoY reaching 77 Mn units during the quarter.
Its latest Galaxy S7 series continue to give it a strong momentum in premium flagship segment during the month of its launch.
In emerging countries, the J series continue to drive volumes as it successfully refreshes its key J series 2016 versions during the quarter.
Apple reported better the estimated results though the performance was relatively weak compared to Apple standards
Apple shipments declined by 15% YoY to reach 40.4 Mn units during the quarter.
Huawei continues to be among top three smartphone brands globally and with its smartphone market share increased to 9% as compared to the last quarter.
During the quarter it successfully ramped up its retail presence with 116% YoY in its number of stores globally.
Oppo with the highest YoY growth among Top 10 brands secured fourth spot with 6.4% market share.
Oppo has adopted a simple but effective strategy, going after the offline market which still contributes more than 70% of total sales in China
Vivo too saw strong quarter with shipments grew 62% YoY reaching its highest ever 16 Million units. Apart from this its performance in overseas market was also strong.
In India it grew by 250% thereby entering 1 Million per quarter club which only seven brands have achieved so far
ZTE and Xiaomi captured fifth and sixth spot in the Global smartphone market.
Huawei, Oppo and Vivo were the only Chinese brands among Top 10 to show positive YoY growth.
Exhibit 2: Global Smartphone Shipments Volume Share (%)
Apple led the smartphone market with a 29% revenue share down from 38% a year ago.
Samsung followed Apple with 23% revenue share and managed to narrow the gap due to strong performance of its flagship GS7 series along with lower ASP A & J series.
Apple and Samsung together now control almost half of the smartphone industry revenues with 800 brands competing at the same time.
Huawei, Oppo and Vivo were the star performers with revenues growing 84%, 152% and 66% annually with strong performance in domestic market as well as overseas market.
Xiaomi was the sixth largest brand in terms of revenue which slipped 14% as the product mix shifted towards lower ASP models as well as overall shipments declining almost 24% YoY
Exhibit 3: Global Smartphone Shipments Revenue Share (%)
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