Top

10 Predictions for LATAM Smartphone, Devices Ecosystem in 2021

The LATAM smartphone and devices ecosystem has been one of the least impacted by the COVID-19 pandemic. Many of the trends mentioned below started in 2020 and will further strengthen in 2021. The pandemic has shown that technology and devices are essential allies through a calamity and will thus contribute to steering the LATAM economy back to growth.

  1. LATAM will have at least 22 operators launching 5G networks. But all of them will have limited coverage, with most of them being non-standalone (NSA) networks. These 22 will be in addition to the nine operators which launched 5G services during 2020.
  2. At least six LATAM countries will auction 5G compatible spectrum. Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Mexico, and Peru have announced plans to auction spectrum that will enable operators to deploy stand-alone (SA) networks and offer commercial 5G plans.
  3. 5G smartphones will start to take off in 2021, but not quite. 5G phones will unlikely bag more than 5% share in the region. Apple and Samsung will drive the growth of this segment in LATAM during 2021. Although 5G technology will reach the $150-$200 price band smartphones, buyers under this band will instead focus on having a better camera, a bigger screen, or more memory. 5G will not drive smartphone replacement in the region.

 

Exhibit 1: LATAM Technology Share, 2018-2021

Counterpoint Research LATAM Technology Share, 2018-2021
Source: Counterpoint Research Market Monitor and Market Outlook, Q3 2020
  1. The market will see double digit growth in 2021. Although the overall economy will continue to struggle, smartphone sales in 2021 are expected to grow more than 19% YoY. Even if there is a second or third wave of COVID-19, the demand will not decline. It will decline only when there is some disruption in the supply chain.
  2. Chinese brands’ participation will grow, but slowly. Huawei’s share will continue to decline. Despite the regime change in the US, the trade ban on the company is unlikely to be lifted soon. Many Chinese brands are entering the region, seeking to grab the share shed by Huawei.
  3. Smartphone ASP might return to growth.In 2020, the ASP decreased slightly but consistently each quarter. The entry of newcomers with aggressive plans may trigger a price war. This will benefit consumers and convince them to spend slightly more while acquiring a new smartphone.
  4. Several countries will increase taxes on smartphones. As COVID-19 left many economies shuttered and some governments broke, smartphones will come under the tax scanner in many countries. Although the OEMs might absorb a part of the increased cost, it will ultimately impact the overall smartphone market ASP.
  5. Online channels will see an increase in smartphone sales. Online sales are here to stay. In 2020, online sales in LATAM increased by at least 60% YoY. This growth will continue in 2021 but at a slower pace, trapped by the reality that only 55% of the region’s adult population has access to the banking system (according to the Alliance for Financial Inclusion), compared to 95% in Europe.
  6. Contactless payment technology to see increasing adoption. COVID-19 accelerated the adoption of this technology in LATAM. All leading banks in LATAM are now launching an NFC (near-field communication) payment platform. Companies like Samsung, Mercado Libre and Facebook are also looking to tap into this trend. On the other end, an increasing number of stores are acquiring contactless payment technology. As the pandemic is still on, this trend will grow.
  7. IoT devices will surge in the region. With the pandemic, many businesses have realized that it is essential to accelerate digital transformation to stay efficient. On the other hand, operators are pushing IoT solutions while looking for a new stream of revenue. At the consumer level, as many people continue to remain stranded at home, smart home and hearable devices will receive an extra boost. In particular, devices related to security, home entertainment and household tasks will be in demand.
Tina has extensive consulting and analysis experience across a number of industry sectors including more than 14 years in the technology industry. Before Counterpoint, Tina spent more than 9 years in Nokia working in multiple roles and geographic regions. Tina also worked in brand and product marketing for Bestfoods-Unilever and BGH. Tina holds an MBA degree from the Thunderbird School of Global Management.

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.