Smartphone shipments for Latin America declined 2.5% year-on-year to 32.2 million units in Q2 but proved to be a bright spot as the global smartphone market collectively dropped 9%.
Canalys Senior Analyst Damian Leyva-Cortes said in a statement: “The second quarter deepened the trend of polarisation, with both the sub-US$100 and US$500-plus price bands strengthening.”
The trend is benefiting Apple, the company’s portfolio sits above the US$500 mark, and saw a 16% annual growth rate to 1.5 million units. The growth was spurred by the launch of its iPhone 13 series and a conservative pricing strategy which “in a hyperinflationary environment, brought good results” noted Leyva-Cortes.
While at the lower end of the market, more players have appeared to intensify competition, particularly in Mexico and Colombia. Shipments of devices worth US$100 to US$500 make p 70% of the market, which is rising in certain LATAM markets such as Chile and Colombia.
Peru and Chile were highlighted to have seen double-digit drops in the quarter.
Xiaomi was noted to have grown in Brazil and Argentina, aiding it in closing the gap with fellow Chinese rival Lenovo, the second largest shipper in Latin America with 6.9 million units behind leader Samsung. The Korean vendor shipped 11.6 million smartphones.
Apple is the fourth largest shipper with it 1.5 million units, followed by Chinese firm Transsion, which shipped 1.3 million units.
Looking ahead Leyva-Cortes said: “It is expected that economic headwinds will affect shipments in the short term, meaning the overall Latin American region will see 0.8% growth in 2022 and 2.5% growth in 2023. This means that Latin America would be the world’s only region to grow in 2022, though it would also be the slowest region to recover in 2023. But, when looking at a country level, the picture varies greatly from market to market.”