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LATAM Smartphone Shipments Fall 9.9% YoY in Q1 2023, But Most Leading Brands’ Volume, Share Increase

Samsung remained the region’s absolute leader with a 41.7% market share. It was also the leader in all the markets in the region.
OPPO’s volume grew 88% YoY, the highest growth among leading brands in the region.
Brazil, Mexico, and Chile suffered the biggest drop YoY.

Buenos Aires, San Diego, Denver, New Delhi, Hong Kong, Seoul, London, Beijing – May 11, 2023

LATAM smartphone shipments declined 9.9% YoY in Q1 2023 on weak consumer demand, according to Counterpoint Research’s Market Monitor service. After a bleak Q4 of 2022, things did not turn around during the first quarter of 2023. Traditionally, Q1 is one of the slowest quarter of the year as the southern hemisphere’s summer recess falls in this quarter. The shipments usually start picking up in March in preparation for the Mother’s Day sales season in May. However, this year’s weak demand affected these shipments.

Commenting on the market dynamics, Principal Analyst Tina Lu said, “High inflation, low economic growth, and some social unrest that continued from 2022 impacted consumer confidence in the region. 5G smartphones failed to attract consumers in big numbers to accelerate the rate of replacement. But still, the region’s 5G smartphone portfolio increased by more than 21% even as the share of 5G smartphones improved only a few points since December. It is still not clear whether the LATAM consumer wants a 5G smartphone or buys it as it is the best option available.”

Top Smartphone OEMs’ Market Share in Latin America, Q1 2023 vs Q1 2022

Source: Market Monitor

Commenting on the performance of OEMs in the region, Research Analyst Andres Silva said, “While the smartphone market continued to decline, most leading brands managed to increase their share and even volume. With leading brands having better product availability and deeper pockets to run promotions, the smaller brands were pushed to an all-time low. However, the overall inventory situation continued to improve.”

Market Summary

Samsung’s volume and share in the region dropped YoY, impacted by the general market decline. However, the brand’s share improved QoQ. During Q1 2022, Samsung started an aggressive volume shipments that continued till Q2 and resulted in high inventories that lasted until the end of 2022, impacting the brand’s shipments during H2 2022. This year, Samsung was more cautious and did not build that massive amount of inventory.
The launch of refreshed A series allowed Samsung to remain as the region’s absolute leader with a 41.7% share, more than double the closest competitor’s.
The launch of the S23 series allowed Samsung to remain the value leader in the region. Samsung conducted an aggressive promotional campaign for the launch of the S23 series, and it was rewarded with better performance than last year’s S22 series. Brazil, Mexico, and Argentina were the markets driving this growth.
Xiaomi also gained volume and share. Its growth was driven by the launch of the A2 model in February and the Note 12 model in April (shipments of the model started in March). The brand also managed to partially resolve the issues being faced by it in Mexico.
Xiaomi is trying to push its premium models, but the response from end users has been lukewarm so far.
Apple’s volume and share also increased YoY. The iPhone 11, a 4G model, drove its growth in the region.
Apple has been aggressively driving sales by offering a memory upgrade in the iPhone 14 and some subsidies for many of its products.
OPPO continued to grow, with its share more than doubling YoY. Its volume grew 88% YoY, the highest growth among leading brands in the region. Entering the region three years ago, OPPO has already consolidated its position among the top three in Mexico. It is now aiming to grow its share in Colombia and Peru.
OPPO is also set to increase its share in the premium segment by launching the Find N2 Flip in the region. It is the third OEM to launch a flip model in the region.
ZTE’s volume continued its decline from 2022. It is one of the brands affected by the regional decline.
The smaller and regional brands’ volumes continued to decrease. They have been squeezed by the big brands’ deep pockets and new entrants.

Feedback or a question for the analyst that wrote this note?

Tina Lu

Senior Analyst

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.

Analyst Contacts

Tina Lu

Andres Silva

Peter Richardson

Follow Counterpoint Research
press@counterpointresearch.com

LATAM Smartphone Shipments Down 13% YoY; Samsung, Xiaomi Biggest Share Gainers

LATAM smartphone shipments decreased 13% YoY and 17.3% QoQ in Q3 2022.
All the top brands’ volumes declined QoQ, except for OPPO.
Samsung led the market with a 40% share, followed by Motorola with a 22% share.
The >$700 price band saw the highest growth.

Buenos Aires, New Delhi, Hong Kong, Seoul, London, Beijing, San Diego – December 12, 2022

The Latin American and Caribbean smartphone shipments fell 13% YoY and 17.3% QoQ in Q3 2022, according to the latest research from Counterpoint’s Market Monitor service. All the top brands’ volumes declined QoQ, except for OPPO.

Commenting on the market, Principal Analyst Tina Lu said, “Q3 2022 shipments were impacted by high inventories carried over from Q2 2022. During the previous quarter, several OEMs pushed high shipment volumes, but consumer demand was slowing down. Therefore, it resulted in excess inventories in most sales channels, and Q3 2022 mainly corrected it. But still, the issue has not been completely fixed and the sales channels will feel the pain of higher-than-acceptable inventories in Q4 2022 too.”

Lu added, “Consumer demand remains weak in LATAM. The regional economic crisis, triggered by high inflation, currency depreciation and a change in political power, resulted in a sharp decrease in consumer demand. OEMs, operators and retailers have all launched aggressive promotional bundles or double-digit discounts to increase sales.”

Research Analyst Andres Silva noted, “Samsung and Xiaomi were the biggest share gainers YoY during the quarter. Samsung remained the absolute leader in the region and all the individual countries. Xiaomi continued to grow by entering new countries and expanding both the operator and its own retail channels. This drove Xiaomi’s share and shipment volume growth in the region.”

Commenting on the price band performance, Silva said, “Despite the economic crisis, the >$700 price band saw the highest growth. Apple and Samsung’s flagships drove the growth of this segment. On the other hand, the <$150 price segment saw the biggest drop YoY, reflecting the lack of adequate entry-level smartphone supplies from the biggest brands, especially Motorola.”

Top Smartphone OEMs’ Market Share in Latin America, Q3 2021 vs Q3 2022

Source: Counterpoint Research Market Monitor, Q3 2022

Q3 2022 Market Summary

Amid weakened consumer sentiment and massive shipments in Q2 2022, Samsung’s high inventory impacted its shipments in Q3 2022. On the other hand, demand for low-end and low-to-mid-end devices remained robust, showing a flat YoY volume growth.
Motorola’s shipments fell 6% QoQ as its entry-level models were in short supply. Motorola also dropped YoY as it had an exceptional quarter in Q3 2021. The brand’s performance was particularly hit in Brazil, Argentina and Mexico. The recently launched Edge 30 flagship series also failed to click with consumers.
Xiaomi’s shipments rose 15% YoY driven by the Redmi Note 11, which has proven to be the rising star. However, high inventory in operator channels and low demand in certain countries like Peru resulted in a QoQ shipment drop.
Apple saw only a slight volume decrease YoY despite the launch of the new iPhone. But the iPhone 14 was launched late in the region even as Colombia imposed restrictions on 5G iPhone imports. The good demand for the iPhone 11 helped soften the fall. Apple is expected to improve its performance over the next quarter.
OPPO’s share rose one percentage point QoQ driven by the launch of the new Reno 7 in the region. Mexico and Colombia helped the brand navigate overall market softness.
The region’s smartphone market is becoming more concentrated. The top three brands represented 69% of the shipments in Q3 2021 and 75% in Q3 2022. While the new Chinese entrants are facing a tough time in such a market, it is the regional and smaller brands that are suffering the most.
The “others” category decreased in volume and share YoY. Big brands, with their deeper pockets for promotions and better negotiation power, are making it tough for smaller brands.

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.

Analyst Contacts

Tina Lu

tina@counterpointresearch.com

Andres Silva

andres.silva@counterpointresearch.com

Peter Richardson

Peter@counterpointresearch.com

Follow Counterpoint Research
press@counterpointresearch.com

LATAM Smartphone Shipments up 9% YoY; Samsung Widens Lead to All-time High

LATAM smartphone shipments increased 9% YoY and 8% QoQ in Q2 2022.
Samsung led the market with 43.5% share, followed by Motorola with 19.6% share.

Buenos Aires, New Delhi, Hong Kong, Seoul, London, Beijing, San Diego – August 16, 2022

Latin America’s (or LATAM’s) smartphone shipments increased 9% YoY and 8% QoQ in Q2 2022, according to the latest data from Counterpoint Research’s Market Monitor service. The growth came despite the regional economic crises and weak global smartphone shipments. Argentina led the region with 32% YoY growth, followed by Mexico and Colombia. Samsung’s shipments and market share reached all-time highs during the quarter.

Commenting on the market dynamics, Principal Analyst Tina Lu said, “Samsung, Xiaomi and Apple’s shipments grew YoY in the LATAM market. These brands managed to offset the loss registered by other brands in LATAM’s overall shipment numbers. But the shipments didn’t match consumer demand, resulting in a record-high inventory, especially for Samsung and to a lesser degree for Xiaomi.”

Lu added, “Inventory was especially high in the higher price bands. Shipments in the $250 and above price band more than doubled YoY. The economic crisis did not allow the consumer demand to be as high as the OEMs’ expectations. Furthermore, in terms of product rotation, many retailers and operators were offering longer payment terms of up to 24 installments. 5G is still not widely demanded in the region. Most 5G devices are from the high-end segment.”

Research Analyst Andres Silva said, “Q2 is usually the second biggest quarter of the year in terms of seasonality as it includes Mother’s Day and Father’s Day in most markets. Both these festivals see key promotional sales. This year too, OEMs had promotions to offer, like Xiaomi had the ‘Xiaomi Day’, where most models had double-digit discounts. Colombia also had the “Dia sin IVA”, a VAT (value-added tax)-free day. Although it was only for one day, it accelerated the market to some extent”.

Top Smartphone OEMs’ Market Share in Latin America, Q2 2021 vs Q2 2022

Source: Counterpoint Research Q2 2022 Market Monitor

Q2 2022 Market Summary

Samsung was one of the few OEMs that were able to resolve or significantly improve the supply chain issue. This drove a massive surge in volume in both YoY and QoQ terms.
Samsung’s shipments and share in Q2 2022 were at all-time highs. The brand saw strong shipments but softer sell-through, resulting in high inventory, especially in the mid-high- and high-price segments.
Supply shortages impacted Motorola’s shipments for most of Q1 2022. Starting Q2, it increased shipments and launched low-price models in the region, which led to higher sell-through despite the slower consumer demand.
Xiaomi continued to grow YoY and QoQ. Very aggressive pricing for the Note series, specifically the Redmi Note 11 model, led to this growth.
Xiaomi’s sub-brand Redmi grabbed 91% of its volume in the region. Redmi has been very aggressive in dropping the price of its Note series to compensate for the absence of the A series.
OPPO saw a shipment volume decline, but the brand improved its position in the region. Most of its volume is still concentrated in Mexico.
OPPO is pushing to increase its participation in the affordable premium segment ($300-$500). It has launched the Reno 7 model in the region but is facing fierce competition from established OEMs. The brand is intensifying marketing, particularly at the sales point.
Apple grew YoY driven by the iPhone 11 model and Apple Store and premium resellers partnering with banks to offer installment payments.
Apple’s volume and share in the region continued to grow. Its older 4G model iPhone 11 drove the growth. Brazil, Chile and Mexico led in volume terms.
The “Others” category continued to decline YoY, affected by larger OEMs’ aggressive promotions and bundling.

Background

Analyst Contacts:

Tina Lu

tina@counterpointresearch.com

Andres Silva

andres.silva@counterpointresearch.com

Peter Richardson

Peter@counterpointresearch.com

Follow Counterpoint Research
press@counterpointresearch.com

Latin America Smartphones Still Feeling Supply Constraint Headwinds

LATAM smartphone shipments decreased 5.8% YoY in Q1 2022.
Samsung led the market with 44.3% share followed by Motorola with 17.1% share.

Buenos Aires, New Delhi, Hong Kong, Seoul, London, Beijing, San Diego – June 8, 2022

Q1 2022 smartphone shipments dropped 5.8% YoY, affected by supply constraints, mainly among the Chinese brands. Also, last year’s first quarter sell-in was especially high making year on year comparisons tough. The supply issues are improving but might continue to be a drag for the rest of the year.

Commenting on the market dynamics, Principal Analyst Tina Lu said: “During Q1 2022, OEMs in LATAM (includes the Caribbean and Latin America) were in a fierce price war, which mitigated the impact of consumer demand that started to contract, but it might not be the same moving forward, especially in the mid-high price band segment smartphones. 5G devices volume and penetration continue to grow; in Q1 2022, 5G devices represented 15% of the smartphones sold in the region. Brazil, Mexico and Chile lead 5G-enabled sales volume and penetration share. Samsung overtook Apple to become the leading vendor in 5G-enabled device sales.”

Top Smartphone OEMs’ Market Share in Latin America, Q1 2021 vs Q1 2022

Source: Counterpoint Research Q1 2022 Market Monitor

Lu added: “Chinese brands might not yet have the power to drive growth. Samsung increased its share in the region and continued leading the LATAM market, driven by Brazil and shipments of the Galaxy A 03 model family. Motorola’s shipment decline was caused by the Chinese New Year and other supply chain disruptions. This impacted it in most markets except for Argentina. Xiaomi decreased share slightly, impacted by supply chain issues, but it increased its ASP.”

Market Growth in Latin America Biggest Countries, Q1 2022

Source: Counterpoint Research Q1 2022 Market Monitor

Commenting on country performance, Research Analyst Andres Silva, said: “Most of LATAM’s biggest countries followed the regional trend of YoY declines, except for Chile, which slightly improved. Chile is one of the most stable countries in the region. Mexico was flat YoY, fueled by Chinese brands entering the market and increased competition. Samsung is also resolving its issues with Telcel. Brazilian local manufacturing/assembly improved, but it is still impacted by component supply chain shortages.”

Q1 2022 Market Summary

Samsung retained leadership in all LATAM markets.
Samsung’s volumes declined YoY and QoQ, impacted by the decline in shipments from its Vietnam factory. But sell-in volume still outpaced most Chinese brands, so its share increased YoY and QoQ. Telcel Mexico’s issue with Samsung is slowly settling. Samsung did not have enough supply in the entry-level segment, so it saw a slight YoY decrease in its sales volume in this segment, particularly in Brazil and Mexico.
Motorola’s shipments dropped YoY and QoQ. Its sales declined following a lack of supply due to the Lunar New Year break in China and inventory issues.
Xiaomi continued to grow YoY, though it dropped compared to the previous quarter. It is strengthening its position in the region. But most of its volume is based on the Xiaomi Redmi Note series. It will need to become more aggressive with its entry-level A series to continue to grow in LATAM. Xiaomi is offering aggressive pricing and promotions, but still lacks strong brand recognition. The brand is facing some high inventory issues in its mid-high price segment models.
In Q1 2022, Xiaomi officially entered the Argentina market, but did not immediately make much headway achieving only 1% market share through April 2022.
Since the beginning of 2022, Apple’s supply into the region increased YoY in most of its markets resulting in the brand’s share increasing. Apple is expensive for the region’s average consumer but is considered a desirable brand. So, countries with high ASPs, such as Chile and, to a lesser extent, Brazil, account for most of its volume in the region.
ZTE continued to be the principal provider of entry-level devices with most of its sales coming from <$100 models.
Others brands continued to drop YoY as the Chinese new year and component shortages impact smaller Chinese brands and local brands, especially in the entry-level segment.

Background

Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media and telecom) industry. It serves 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.

Analyst Contacts:

Tina Lu

+54 91160411221
tina@counterpointresearch.com

Andres Silva

+57 3004929435

andres.silva@counterpointresearch.com

Peter Richardson

+44 7917231934
Peter@counterpointresearch.com

Follow Counterpoint Research
press@counterpointresearch.com

LATAM Smartphone Shipments Grow 13.4% YoY in 2021 Despite Supply Constraints

LATAM smartphone shipments grew 13.4% YoY in 2021 and .03% YoY and 9% QoQ in Q4 2021.
Samsung led the market with 38% share, followed by Motorola with 22.5% share.

Buenos Aires, New Delhi, Hong Kong, Seoul, London, Beijing, San Diego – February 24, 2022

LATAM smartphone shipments grew a healthy 13.4% YoY in 2021 despite the ongoing component shortages. However, the number was still 9% lower than that for 2019, according to Counterpoint Research’s latest Market Monitor tracker. Most of the 2021 growth was in the first half of the year, as COVID-19 lockdowns had hit growth in the same period of 2020.

Commenting on the market dynamics, Principal Analyst Tina Lu said, “Most LATAM countries saw YoY growth driven by Chinese brands entering the region and increasing competition. But Brazil’s TAM decreased YoY. With local manufacturing/assembly representing more than 80% of its smartphone volume, Brazil felt the full impact of component shortages.”

Commenting on brand trends, Lu said, “All brands grew in volume during 2021, but some grew more than others. Samsung, the absolute leader in the region, increased only 6% in volume, but its ASP grew more than 19% YoY. The OEM’s shipments increased less than the overall market as it decided to produce higher-ASP devices due to chipset shortages.”

“Furthermore, LG exited the market during the second half of the year, leaving a void in the entry-level segment. Motorola and ZTE spotted the opportunity and moved in. Motorola’s volume increased 39% YoY and ZTE’s 74% YoY. But the brand that grew the most was Xiaomi, which aggressively entered the operator channel. Its volume almost doubled YoY. Xiaomi has been pushing its brand image in LATAM since 2018.”

LATAM Smartphone Shipment Market Share, 2021 vs 2020

Source: Counterpoint Research Market Monitor, Q4 2021 Notes: Xiaomi includes POCO

Commenting on the Q4 2021 market dynamics, Research Analyst Andres Silva said: “Despite the annual growth, Q4 2021 shipments increased only .03% YoY but 9% QoQ due to a combination of seasonality and improved supplies from China and Vietnam and local manufacturing/assembly. The fourth quarter is usually the biggest quarter for the LATAM smartphone market. But in 2021 many OEMs could not anticipate production constraints that impacted most of the second part of the year.”

LATAM Smartphone Shipment Market Share, Q4 2021 vs Q4 2020

Source: Counterpoint Research Market Monitor, Q4 2021 Notes: Xiaomi includes POCO

Q4 2021 Market Summary

Samsung led the region in Q4 2021 with its volume rising 12% QoQ but falling 1% YoY. The brand led in most of the countries in the region, except Argentina and Mexico. Samsung was impacted by supply shortages and not having enough entry-level products.

Motorola was the second biggest brand in the region. It led in Argentina and Mexico. Motorola managed to combine its brand recognition built over 30 years in LATAM and its entry-level models to grow in volume.

Xiaomi continued to grow in the region. It is now the solid number three. In Q4 2021, it saw 71% YoY growth. Its QoQ growth was drastically lower, hampered by supply shortages and not having local production in Argentina and Brazil. Xiaomi has recently announced it will start assembling smartphones in Argentina this year. Its volumes should grow further after local production starts.

Apple suffered huge constraints right after the launch of the iPhone 13. But the shortage appeared to ease by the end of the year with significantly increased shipments. Apple is the absolute leader in the region in the premium segment (>$500).

ZTE grew its volume 44% YoY by expanding sales beyond Mexico. It has a long-term relationship with carriers and offers a portfolio of <$100 smartphones.

Other Chinese brands like OPPO, vivo, realme and TECNO are new entrants to LATAM. They spent most of 2021 building their branding in the region. OPPO was the most successful of all these brands, as it had already built some branding in Mexico several years ago. It is among the top five in Mexico, but Its expansion into other markets has not yet shown results.

“Others” decreased YoY. “Local kings” continue to drop with international and Chinese brands filling the gap.

Background

Analyst Contacts:

Tina Lu

+54 91160411221
tina@counterpointresearch.com

Andres Silva

+57 3004929435

andres.silva@counterpointresearch.com

Peter Richardson

+44 7917231934
Peter@counterpointresearch.com

Follow Counterpoint Research
press@counterpointresearch.com

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