Latin America’s smartphone market has experienced significant growth in the second quarter of 2024, marking a fourth consecutive quarter of double-digit annual growth. According to the latest research from Canalys, smartphone shipments in the region increased by 20% year-on-year, reaching a total of 33.5 million units. This growth has been driven by the increasing popularity of devices priced below US$200, which accounted for the highest share since Q2 2021.
Samsung, a leading player in the Latin American market, maintained its position at the top, with shipments growing by 9% year-on-year to reach 10.2 million units. The success of Samsung can be attributed to its budget-friendly A-series devices, which have resonated well with consumers in the region. However, the most notable development in the market was Xiaomi’s rise to become the second-largest smartphone vendor in Latin America for the first time. Xiaomi saw a remarkable 35% growth in shipments, reaching 6.2 million units in Q2 2024. This milestone marked Xiaomi’s highest quarterly volume in the region to date, surpassing the 6 million units milestone for the first time.
Following closely behind Xiaomi, Motorola secured the third position in the market, shipping 5.7 million units in Q2 2024. TRANSSION and HONOR rounded off the top 5 vendors, with impressive growth rates of 52% and 47%, respectively. TRANSSION shipped 3.2 million units, while HONOR shipped 1.7 million units during the quarter.
Canalys Senior Analyst Miguel Pérez commented on the booming smartphone demand in Latin America, attributing it to an ongoing refresh cycle accelerated by investments from growth-oriented vendors. Pérez highlighted the importance of offering strong value-for-money propositions and aggressive pricing strategies to incentivize consumers to upgrade their devices sooner. This approach has led to a competitive dynamic in the market, with vendors focusing on launching devices with compelling specifications at affordable prices. As a result, the average sales price (ASP) has declined by 12% year-on-year, reaching its lowest value since Q2 2021.
Pérez emphasized the need for vendors to balance short-term volume gains with long-term considerations such as operational profitability and brand positioning. He cautioned that while the market is currently favorable to consumers due to intense competition among vendors, it is essential for industry players to prioritize strengthening channel partnerships, ensuring healthy product margins, and delivering on their long-term targets.
Looking ahead, Pérez raised concerns about market saturation and external factors such as global economic uncertainty and the upcoming US presidential election, which could potentially impact smartphone demand in the region. He advised vendors to focus on effective inventory management, strict replenishment controls, and advanced resource allocation to navigate potential challenges and maintain long-term sustainability.
The second quarter of 2024 witnessed the highest volume of smartphones shipped across two quarters in Latin America, indicating a strong momentum in the market. While most vendors have reported robust growth rates, the industry faces the challenge of managing potential market slowdowns and uncertainties. Pérez highlighted the importance of proactive planning and strategic decision-making to mitigate risks and sustain growth in the face of changing market conditions.
In terms of market share, Samsung maintained its dominance with a 30% share in Q2 2024, followed by Xiaomi with a 19% share and Motorola with a 17% share. TRANSSION and HONOR captured 9% and 5% of the market share, respectively. Other vendors accounted for 20% of the market share, showcasing a diverse landscape of players in the Latin American smartphone market.
As the smartphone industry in Latin America continues to evolve, Canalys’ Smartphone Analysis service provides valuable insights into market trends, shipment estimates, and competitive dynamics. By tracking detailed statistics and offering in-depth analysis, Canalys aims to guide industry professionals in making informed decisions and staying ahead of the competition.
In conclusion, the Latin American smartphone market’s growth in Q2 2024 reflects the region’s increasing appetite for affordable and feature-rich devices. With vendors competing to offer compelling products at competitive prices, consumers stand to benefit from a wide range of options. As the market continues to expand, vendors must adapt to changing dynamics, prioritize long-term sustainability, and seize opportunities for growth in a dynamic and competitive landscape.
For more information on Canalys’ Smartphone Analysis service and insights into the Latin American smartphone market, please contact Miguel Pérez at miguel_perez@canalys.com. Stay updated on the latest industry trends and developments by subscribing to Canalys’ media alerts and services.