Latin American markets also saw smartphone shipments fall as the region experienced a 14% year-on-year drop to 27.9 million units in Q2, but is showing signs of recovery according to analyst company Canalys.
“Subdued consumer demand has led to an increase in vendors’ smartphone inventories. This has led to companies adopting a more cautious approach, targeting specific market segments that could bring them better returns,” said Canalys senior consultant Miguel Perez.
LATAM’s top-selling vendors Samsung, Motorola and Xiaomi were hit by double-digit year-on-year declines, noted Perez, adding vendors had to be conservative to avoid overstocking and increase profitability.
Samsung shifted its focus away from devices in the sub-US$200 bracket, while Motorola and Xiaomi pushed efforts towards their low to mid-tier devices.
The Korean smartphone giant remained the top shipping vendor with 9.4 million units and 34% market share, however, this was a decline from 11.6 million units and 36% market share.
Motorola took 21% of the market with 5.7 million units, a drop from 22% and 7 million units. Chinese vendor Xiaomi saw 4.6 million shipped for 17% market share, a loss from 5.3 million units and 17% year-on-year.
Transsion, the owner of smartphone brands Tecno, Itel, and Infinix, ranked fourth as it saw growth with 2.1 million units up from 1.3 million, and growing market share from 4% to 7%. Perez noted this was due to its wide portfolio of entry-level devices and popularity in Colombia, Ecuador and Peru.
Apple was ranked fifth maintaining its 5% market share with 1.4 million units, down from 1.5 million.
Canalys noted despite varied socio-political landscapes, LATAM’s economic stability is fostering a favourable climate for the smartphone market. Inflation is largely in control and region economic leaders Brazil, Mexico and Colombia are seeing growth.
The analyst company is expecting a 2% decline in full year 2023 but 6% growth in 2024, and further growth up to 2027.
