Latin America’s smartphone market has achieved its fourth consecutive quarter of double-digit annual growth in Q2 2024, according to research by Canalys.
Shipments surged by 20% year-on-year, reaching 33.5 million units. This growth has been driven by the highest share of devices costing less than $200 since Q2 2021, explained the market analyst firm.
Samsung continues to lead the market, with a 9% year-on-year growth, shipping 10.2 million units, largely due to the popularity of its budget-friendly A-series.
Xiaomi has emerged as the second-largest smartphone vendor in Latin America for the first time, with a remarkable 35% growth in shipments, totaling 6.2 million devices.
This quarter also marked Xiaomi’s highest volume in the region, surpassing the 6 million units milestone.
Motorola secured the third position, shipping 5.7 million units. Transsion and Honor rounded out the top five, with impressive growth rates of 52% and 47%, respectively, shipping 3.2 million and 1.7 million units.
“Smartphone demand continues to boom in Latin America thanks to an ongoing refresh cycle accelerated by large investments from growth-ambitious vendors. Vendors are incentivizing consumers to refresh their devices sooner using strong value-for-money positioning and aggressive pricing. This is reflected in the ASP (average-sales-price) declining 12% year-on-year to its lowest value since Q2 2021. Fierce competition among many vendors is making the consumer the current winner in the market. However, vendors must find a balance between short-term volume gains and long-term strength factors such as operational profitability and brand positioning,” said Miguel Pérez, Canalys Senior Analyst.
Pérez also highlighted the record-breaking shipments in the first half of 2024, noting concerns about market saturation and global economic uncertainties, including the impact of the US presidential election.
He emphasized the importance of effective inventory management, strict replenishment controls, and strategic resource allocation to navigate potential slowdowns and maintain long-term ambitions.
While the Latin American smartphone market is currently thriving, vendors must remain vigilant and adaptable to sustain growth and capitalize on emerging opportunities.
