Boston, Toronto, London, New Delhi, Hong Kong, Beijing, Taipei, Seoul – August 19, 2020
LATAM smartphone shipment increased 41.8% YoY in Q2 2021 but declined 6.5% compared to the previous quarter, according to the latest Market Monitor report from Counterpoint Research. Smartphone demand in the region grew steadily but volume growth was impacted by the ongoing chipset shortages and manufacturing constraints.
The region is still suffering from COVID-19. Only a couple of countries have been able to fully vaccinate more than half of their population. Therefore, most countries are enduring various degrees and forms of lockdown, leading to an economic slowdown. This, in turn, has affected the purchasing ASP (average selling price) rather than the rate of replacement.
Commenting on the market dynamics, Principal Analyst Tina Lu said, “LATAM countries’ growth or decline rates varied during the quarter. Brazil was one of the most impacted by component shortages as it has a limited number of brands. On the other hand, Mexico grew compared to the previous quarter, fuelled by fierce competition from new entrants. This led to a larger TAM (Total Addressable Market) in the second biggest market of the region.”
Smartphone Shipment Market Share, Q2 2021
Lu added, “The volume of most of the brands grew in double or even triple digits YoY. Samsung was the most affected due to the constraints related to its Vietnam factory. Brazilian manufacturing also had supply issues. However, retailers and operators had accumulated some supplies, softening the drop in sell-through. But sell-in was severely impacted. Still, Samsung remains the leading brand in the region, except Mexico and Peru.”
Smartphone Shipment OEM Ranking by Country, Q2 2021
Motorola gained both volume and share in Q2 2021. It capitalized on some of the volume lost by Samsung due to product constraints in the region. In Mexico, it became the market leader. Colombia was the only country that saw a substantial drop in Motorola’s volume affected by Xiaomi. It remains a solid second player in the region.
Xiaomi saw its highest growth ever in the LATAM region. Its volume more than tripled YoY, aided by Huawei’s decline. Xiaomi is now the third-largest player in the region. It has surpassed Samsung to become the number one brand in Peru, the first LATAM country to make it the market leader. In Colombia, it remains slightly below the market leader, Samsung. But Xiaomi’s LATAM growth might slow down due to increasing competition from other Chinese brands.
ZTE volume and share also increased. The brand is increasing its tie-ups with carriers. It benefited from the product supply constraints in the $100 and below segment and LG’s exiting the mobile device market. LG still has some demand, but Samsung, Motorola, ZTE and others are quickly grabbing its volume.
Apple decreased in volume compared to the previous quarter. This is due to the usual seasonality where its sales volume decreases as it gets closer to a new launch. But still, the best-selling model for the American OEM during Q2 2021 was the iPhone 11.
OPPO is the most successful among the Chinese brands that entered the region during the last year or so. However, almost 90% of its volume is concentrated in Mexico. OPPO is placing resources in other LATAM countries, but it still needs to build its branding there. It was in Mexico for a short period in 2017 and is now benefitting from the brand-building undertaken then.
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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.
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