Apple’s iPhone 11 was the third best-selling model in Mexico in Q2 2023.
60% of the models in the top 10 list were priced below $150.
Samsung’s Galaxy A34, Galaxy A54 5G were the only two 5G models on the top 10 list.
Mexico is the second most important smartphone market in Latin America. The country has the second-highest population in the region and hosts an extremely competitive ecosystem. Mexico’s geographical size and lack of import barriers make it an extremely attractive smartphone market.
The top-selling models accounted for 35% of Mexico’s total smartphone market in Q2 2023. The top 10 list almost appears like Samsung’s performance for the quarter as the brand dominated the top-selling chart in Mexico in Q2 2023. Five of the 10 best-selling models were from Samsung. According to Counterpoint’s Market Pulse Report, Samsung’s share in Q2 2023 was slightly more than 30%.
OPPO and Motorola both had two models in the Q2 2023 top-selling list. Motorola, which has always been a strong player in the Mexican market, launched a few new models during the quarter that helped the brand increase its market share. OPPO, a relatively new entrant in the LATAM market, managed to retain its third position in market share with two of its models in the top-selling list.
Source: Counterpoint Research Market Pulse, Q2 2023
60% of the models in the top 10 list were priced below $150. This price band accounts for 52% of the overall smartphone market in Mexico. However, premiumization is infiltrating the Mexican market, and the number of models in the >$150 band is increasing in the top-selling list. This trend is accelerating slowly but will surely lead to a higher overall smartphone ASP.
Apple’s four-year-old iPhone 11 has been part of the Mexican bestseller list for a few quarters now. It was the third best-selling model in the Mexican market in Q2 2023. The iPhone 11, which is a 4G model, was the most expensive model on the list. The massive sales of this model reflect the strength of Apple’s branding.
The 4G version of OPPO’s Reno 7 was another model in the bestsellers list priced more than $150. This is quite an achievement for the brand, which arrived in the region just three years ago. OPPO is still building its branding in the Mexican market. The Reno 7 has been in the Mexican top-selling chart since December 2022.
It is noteworthy that only two models in the chart are 5G phones – the Samsung Galaxy A34 and the Samsung Galaxy A54 5G. The latter one is also the most expensive Samsung model in the top-selling list. Meanwhile, Telcel has been pushing its subscriber base to replace their phone with a 5G one. Mexican consumers are still not ready for 5G technology. They would rather get more specs than access the technology.
Our Q2 2023 Market Monitor report has been published. We release one infographic each quarter to summarize the global smartphone market activities in a single page.
Some quick observations on the smartphone market:
Global smartphone shipments declined 9% YoY in Q2 2023 to reach 268 million units.
Samsung remained the top smartphone player in Q2 2023, while Apple saw a cyclical decline.
Among the top five brands, Apple experienced the smallest YoY shipment decline. Among the top 10 brands, TECNO and Infinix, part of the Transsion Group, saw double-digit YoY shipment growth in the quarter.
In terms of regional performance, only the Middle East and Africa (MEA) exhibited annual shipment growth while North America experienced the highest decline.
The top five brands accounted for almost 80% of the total 5G smartphone shipments in Q2 2023.
Use the button below to download the high resolution PDF of the infographic:
Entry of Chinese brands stirring up regional market.
Samsung remains regional leader with 36.9% share, followed by Motorola with 21.4% share.
Apple’s growth mainly sustained by the iPhone 11.
One in four smartphones shipped in the region is a 5G smartphone.
Buenos Aires, San Diego, Denver, New Delhi, Hong Kong, Seoul, London, Beijing – August 24, 2023
Smartphone shipments in Latin America (LATAM) dropped 15.6% YoY but climbed 2.4% QoQ in Q2 2023, according to the latest data from Counterpoint Research’s Market Monitor service. The decline was due to the negative impacts of the regional economic crises and weak global smartphone shipments.
Commenting on the market dynamics, Principal Analyst Tina Lu said, “LATAM’s economic growth in 2023 is actually slightly higher than forecast. However, this recovery has not yet inspired an increase in the rate of smartphone replacement. Low consumer demand continued to affect the region during the quarter. Although most countries in the region are seeing declining inflation, consumer confidence is yet to bounce back, as political turmoil continues to constrain the general economy.”
Research Analyst Andres Silva added, “Seasonal factors such as Mother’s Day and Father’s Day promotions helped the market grow slightly QoQ in Q2 2023, although the market declined YoY. The entry of many Chinese brands at once is stirring up the market as they aim for growth, pushing other brands to become more aggressive. However, the YoY decline affected all the top six countries in the region.”
Top Smartphone OEMs’ Market Share in Latin America, Q2 2022 vs Q2 2023
Source: Counterpoint Research Q2 2023 Market Monitor Note: Figures may not add up to 100% due to rounding
Commenting on the ASP performance in the region, Lu added: “There is a slight premiumization trend going on in the region. Compared to last year, LATAM’s total smartphone ASP only grew around 4%. This has been a consistent trend. Inflation has some influence on it. However, established brands such as Samsung are pushing to increase the ASP in the region with 5G models.”
Market Summary
Samsung was once again the absolute leader in the LATAM market in Q2 2023. However, its shipments and market share declined YoY with weakened performance in most of the countries in the region.
Samsung has been very aggressive in offering extra discounts during the promotions. But not enough as its shipments were hurt by the Brazilian market and the entry of Chinese brands.
Since Samsung is focusing more on premium models now, the availability of its models in the lower price bands is becoming restricted. Thus, its overall value dropped -2% YoY.
Motorola’s shipments decreased YoY but its market share increased slightly. It increased the number of models in the entry-segment E series. It also increased its brand awareness with the launch of the Motorola Edge 40 Pro in May with an aggressive advertising campaign.
Xiaomi lost share slightly during the quarter but remained stable due to the launch of the Redmi Note 12 during the first week of April. This increased its Q2 2023 shipments and sales. Xiaomi also increased its Poco brand shipments in the open channels in the region.
Xiaomi recovered slightly from its position in Mexico. The participation of the grey market in the southern part of the LATAM region continued to grow.
Apple’s shipments and market share both grew YoY in Q2 2023, mainly sustained by the iPhone 11. The 4G smartphones are still driving Apple’s volume in the region.
OPPO continued to be a strong fifth player in the region and ranked third in Mexico. Its volume increased by more than 70% in Q2 2023, while its share more than doubled YoY. Despite the growth, its shipments dropped QoQ.
HONOR did not make it to the list, but its growth in LATAM has been notable. HONOR was the brand with the most aggressive growth during the quarter. However, it still needs to build on its branding.
“Others”, mainly composed of regional brands, continued to decrease YoY. This category was most affected by the entry of low-price-band Chinese brands.
Background
Counterpoint Technology Market Research is a global research firm specializing in products in the technology, media and telecom (TMT) 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.
The global financial crisis has hit consumers hard, weakening demand and making 2022 the worst year for smartphone shipments since 2013, even taking into account COVID-ravaged 2020.
Times are tough for most smartphone OEMs but HONOR’s performance thus far is noteworthy. While some are having to carefully manage inventory in the face of weak consumer demand, and as most other Chinese OEMs pivot strategies to be less aggressive in their expansion plans due to uncertain market conditions outside of their home market, HONOR is actually expanding.
In its overseas markets (i.e., outside of China), HONOR’s shipments grew almost four-fold in Q1 2023 versus Q1 2022. The only other major OEM to register growth in the same period was HMD; many others posted double-digit declines.
Yes, HONOR’s growth is from a much smaller base than the others, since it only became an independent brand (separating from Huawei) in November 2020, but the growth trajectory – especially in a declining market, is positive.
So, what are HONOR’s growth prospects could we see it higher up the top 10 non-China rankings list in 2024?
Regional expansion is a work in progress
In terms of HONOR’s key overseas markets, over the last year, HONOR has seen impressive growth in three regions – Europe, Middle East & Africa and Latin America – where its shipments increased by over five-, six- and eight-fold respectively.
Source: Counterpoint Research. Note: Europe data excludes Russia and Turkey.
Europe
It took a bit of time for HONOR to get started in Europe following its independence in November 2020. After a period of re-grouping, HONOR returned in early 2022 with partnerships with many major retailers and some of region’s biggest operators (including Three UK, Orange and SFR France and Wind Tre Italy). Operators are crucial to future growth prospects as their sales channels account for around 40% of the region’s smartphone sales in Q1 2023 (and around 55% in Western Europe).
HONOR now operates a three-tier strategy in Europe:
The flagship Magic smartphones, starting with the Magic4 Pro, established HONOR’s premium credentials, and has done well in France, Germany and the UK.
The mid-tier HONOR 50 and 50 Lite were HONOR’s main sellers in Q1 2022, replaced by the HONOR 70 which was HONOR’s key volume driver in Europe in Q1 2023.
The budget X series has done well in the more price-conscious markets, for example Italy and Eastern Europe.
This complete portfolio offering has helped HONOR grow quickly in Europe. HONOR is hoping to maintain this momentum with the well-reviewed Magic5 Pro (launched in Q2 2023) and the Magic Vs (HONOR’s foldable launched in Europe).
Source: Counterpoint Research. Note: Europe data excludes Russia and Turkey.
Latin America
HONOR’s fastest growing overseas region is Latin America, where its shipments grew nearly eight-fold YoY and more than tripled compared to the previous quarter. HONOR is growing share in most of the countries in the region: it entered the top five in Colombia and Peru (where it has double-digit share) and is also seeing success in Panama and Guatemala.
MEA
HONOR identified MEA as a key growth market, especially the Middle East region which has so far weathered the macro headwinds extremely well and is one of the few growing markets in the world. It has entered top five in some key markets such as UAE, Saudi Arabia, and Iraq.
HONOR bringing new flagships to global markets
HONOR has so far relied on its Number and X series to grow outside of China. However, it is now looking to its Magic series to help secure its position as a key player, adopting a dual flagship approach with the Magic5 Series and Magic Vs smartphones.
The Magic5 Pro is HONOR’s most ambitious flagship to date and it is getting a positive reception on various review sites as well as ranking top of DXOMARK’s camera ratings when first released.
Starting at $1,200, this device is expensive, placing it in the same price bracket as the Samsung Galaxy S23 Ultra. This may cause issues in markets where consumers tend to favour more affordable devices. However, it has an opportunity to gain share in the more premium markets like the UK, France, Germany and the UAE, where high-end smartphones are relatively more popular.
The Magic Vs, meanwhile, is HONOR’s second foldable smartphone, and it’s first to be launched outside China. HONOR is hoping to ride the wave of foldables growth started by Samsung’s Fold and Flip smartphones, and more recent offerings like the OPPO Find N2 Flip and the upcoming Google Pixel Fold.
Although the foldables market is still small, its growth is an industry bright spot. We expect global shipments of foldable smartphones to grow at an annual rate of just under 50% over the next five years, passing 90 million, or 6% of total smartphones, by 2027. Around three-quarters of this will be outside of China, and HONOR is banking on the Magic Vs to establish it as a key challenger to Samsung in the foldables space.
Future prospects
Developing a portfolio approach
As noted above, HONOR is using a three-pronged portfolio approach in the smartphone market with ranges that span the price bands. In key flagship segments, HONOR’s product performance is approaching that of the market leaders. And its flagship products act as heroes that help to build brand momentum that filters down to its mid- and low-end products.
HONOR is also gradually filling out its portfolio with an ecosystem of partner products including wearables, tablets, PCs and more, which will support efforts to build brand awareness.
So, what can we expect?
Counterpoint Research expects HONOR will gradually grow its overseas market position, gaining share from rivals as it achieves increasing distribution across both operator and retail channels, its product portfolio expands and its brand gains awareness.
We do not expect explosive growth, rather a steady increase in strength from which HONOR can build. And we further expect this to occur in some key countries such as UK, France and Germany, Latin American countries including Mexico, Colombia, Peru , and select countries of Middle East and North Africa.
This forecast is the most likely outcome given HONOR’s current position and strategy, but it’s not pre-determined – HONOR can and likely will disrupt it through its own actions.
Feedback or a question for the analyst that wrote this note?
Jan Stryjak
Associate Director
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.
Our Senior Analyst Tina Lu will be joining Charlas De Café as a speaker for a session on ‘Smartphone Affordability in a Falling Market’. The session will be live on LinkedIn on 4th April 2023, 1500 ART.
About the session:
The smartphone market continues to decline in the world. Users are increasingly delaying the time to change their phone. In the middle, there are options to recondition mobiles, a cheaper and more environmentally friendly alternative, coinciding with a wave coming from Europe. Is the refurbished or remanufactured cell phone a new option in this falling market? Experts and protagonists of this new trend will give us their vision of what is happening in Latin America in the next Coffee Talks.
Register for the event here:
To get live updates you can watch this space or follow us on Twitter and LinkedIn.
Driven by the momentum generated by the reopening of markets and new product launches and partnerships by operators in Africa and Latin America, the global smart feature phone shipments grew 26% in Q4 2020 to reach the pre-pandemic level, according to Counterpoint’s Smart Feature Phone Tracker. The market had experienced a dip in Q2 2020 followed by a resurgence in Q3 which laid the foundation for the growth in Q4 2020.
The market was also helped by a renewed focus of India’s Reliance Jio after the dip in Q2 2020. As a result, the Indian market led the shipments with a 63% share of the global market in Q4 2020. Europe and the Middle East and Africa (MEA) also showed encouraging signs with positive quarterly growth of 28% and 398% respectively.
The COVID-19 pandemic severely hit the market in Q2 2020. Lockdowns, closure of stores, and disruptions in the supply chain led to a 35% decline in shipments. Cutting down of non-essential expenses by target consumers also disrupted the market. Only the North American region helped sustain the market, thanks to the government stimulus.
The disruptions in Q2 2020 also meant new launches were no longer possible. With the lifting of restrictions, new launches and partnerships, and expansion into new markets started again, helping the shipments increase by 30% in Q3 2020.
The momentum of Q3 continued into Q4. We also observed innovations in product and GTM for smart feature phones, which ultimately pushed the market in reaching pre-pandemic levels. In Bangladesh, we saw the world’s first smart feature phone with a built-in infrared thermometer. In another example of success from South Asia, the world’s cheapest smart feature phone, Jazz Digit, saw successful trials for financing options. This later encouraged Jazz to add two new SKUs to its smart feature phone portfolio.
Conclusion and Outlook
The smart feature phone fills a very large and important gap in the digital ecosystem. Its target consumers cannot afford a smartphone or do not want to use a smartphone. A smart feature phone solves both these problems by offering basic connectivity features like 3G, 4G and Wi-Fi packaged in an easy-to-use form factor and at a price slightly higher than a feature phone.
The pandemic has made digital communication more important and has accelerated trends such as work-from-home and digital education. In such a scenario, the role of the smart feature phone becomes very important, especially for those who cannot afford a smartphone. For the operators, it helps in moving customers from 2G to 3G/4G and increasing their ARPUs.
The smart feature phone market is now seeing second-generation products. We are also witnessing a flurry of new launches, product innovations, and new go-to-market approaches, all of which can lead to an increase in smart feature phone shipments. New launches in Africa and Latin America, the launch of the world’s first IR thermometer-equipped phone in Bangladesh, and device financing in Pakistan are all pointers to the direction the smart feature phone industry is going.
We expect the smart feature phone market to increase by 10% YoY in 2021, banking on innovations in the industry and a rebound from the pandemic-hit year.
LATAM smartphone shipments in Q4 2020 decreased 10.3% YoY.
Xiaomi shipments increased 98% compared to 2019, and for the first time, the company reached the third spot in Q4 2020.
Huawei, although still holding the third position in 2020, fell off the top five brands chart in Q4 2020.
Boston, Toronto, London, New Delhi, Hong Kong, Beijing, Taipei, Seoul – February 26, 2020
LATAM smartphone shipments dropped 10.3% YoY in Q4 2020 but increased 9.7% QoQ driven by a recovery from the pandemic and partly due to seasonality, according to the latest Market Monitor research from Counterpoint Research. The drop in shipments was the least in Brazil and Peru. For the first time, Xiaomi emerged as the third biggest player in the region in Q4 2020. The average selling price (ASP) in the region decreased by 6.4% during the quarter.
Commenting on the market dynamics, Principal Analyst Tina Lu said, “Smartphone shipments in 2020 dropped 19.6%. The market suffered from a supply shortage in Q1 2020, especially in Brazil, where local manufacturers also experienced parts shortages. From the end of March and through May, most of the regional demand was halted due to broad lockdowns in most LATAM countries. The market started to recover slowly after June.”
Lu added, “During H2 2020, there was a surge in online promotion events, like Cyber Week and Black Friday. Such events increased further in the first part of Q4 2020. However, by the end of the quarter, promotions shifted toward the offline mode to tap the potential there. Samsung was among the most aggressive in promoting its online channel and expanding its presence in the region.”
Exhibit 1: Smartphone Shipment Market Share, 2020
Source: Counterpoint Research Market Monitor, Q4 2020
Commenting on brand performance, Research Associate Monika Sharma said, “Samsung remained the region’s absolute leader in 2020 with 40.5% share. In fact, it was leading in all LATAM countries during the year. Its share in Brazil, the biggest market in LATAM, reached almost 50%. Motorola, which is a comfortable second in the LATAM market, increased its share by 3% points helped by its assembling operations in Brazil and Argentina, and its strong brand recognition in Mexico and Colombia.”
Sharma added, “Xiaomi experienced the biggest growth in participation. The company more than doubled its market share to become the third biggest player in Q4 2020. This is the first time Xiaomi has emerged as the third biggest player in the region. Looking at the trend, it will surely remain the third player in LATAM in 2021. Samsung, Motorola and Xiaomi all took advantage of Huawei’s weakening position due to the US ban.”
Source: Counterpoint Research Market Monitor, Q4 2020
Market summary
Samsung is the absolute leader in all LATAM markets. Its share reached 40.5% in 2020, an increase of 2.5% points from 2019. Motorola, its nearest competitor, had less than half of this share. Samsung’s market leadership was driven by the success of its entry-level A series. The company is expected to retain this huge share until a serious contender emerges in the region. But this needs some time to happen.
However, Samsung’s share reached 36.9%, its lowest point in 2020, in Q4 2020, impacted by product constraint at the end of the year.
Motorola is a comfortable number two in the region. Its share was 18.5% in 2020, which is the highest in the last 10 years. In 2021, it is expected to focus on growing its ASP, as it is unlikely to have any other brand shadowing it in the short term.
Xiaomi, which has been in the LATAM market for a few years now, grew exponentially compared to the previous year. It benefited from Huawei’s decline. Many LATAM users perceive it as an affordable but reliable brand. It was number two in Peru and number three in Chile during Q4 2020. But it still failed to reach the top three brands chart in other markets of the region.
Apple grew both MoM and YoY. It launched the new iPhones in the whole of LATAM except Mexico in November. The late launch pushed the sales of the iPhone 12 in December.
Apple leads the sales of 5G enabled phones in the region, capturing more than 66% share.
LG managed to maintain its share YoY and grow MoM. Driven by its K series, the company has been growing slowly in volume across the region.
Other brands continued to decline. Recent entrants like OPPO, vivo, realme and Tecno will need one year or so to build their brand in the market, the key to success in LATAM.
The comprehensive and in-depth Q4 2020 Market Monitor is available for subscribing clients. Feel free to contact us at press(at)counterpointresearch.com for further questions regarding our in-depth research and insights, or for press enquiries.
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.
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The Magic5 Pro is HONOR’s most ambitious flagship to date and it is getting a positive reception on various review sites as well as ranking top of 
