Buenos Aires, San Diego, New Delhi, Hong Kong, Seoul, London, Beijing – February 27, 2023
LATAM smartphone shipments declined 14.2% YoY in Q4 2022 to mark the region’s worst Q4 since 2013, according to the latest data from Counterpoint Research’s Market Monitor service. Shipments fell despite the comparatively slow market in Q4 2021, which was constrained by supply chain issues.
Commenting on the market dynamics, Principal Analyst Tina Lu said, “There were a few factors that fueled the fall in shipments in Q4 2022. First, many channels ended Q3 2022 with very high inventory. Second, operators and retailers were very conservative in their sourcing as consumer demand was expected to remain weak in Q4 2022. Last but not least, the FIFA World Cup in 2022. The tournament usually takes place in June or July, but this time it was held in November. Consumers traditionally upgrade TVs during the FIFA World Cup season and smartphone sales usually decline. 2022 was no different. However, smartphone sales in Q4 2022 did not decline too much as OEMs and operators offered many promotions on Black Friday and Christmas that stimulated consumer demand, and as most channels were sitting on high inventories. The inventory issue in the region has improved but has not been completely resolved.”
Top Smartphone OEMs’ Market Share in Latin America, Q4 2022 vs Q4 2021
Source: Counterpoint Research Q4 2022 Market Monitor
Lu added, “LATAM smartphone shipments decreased 5.5% YoY in FY 2022 as consumer demand declined due to high inflation, regional political instability, and weak regional currency. On top of that, smartphone prices increased in most local currencies. All these are slowing down smartphone replacement. 5G technology is slowly picking up as many operators are driving its growth, and it is not just in the premium price band. However, 5G smartphones only captured 17% of the regional smartphone market in 2022.”
Top Smartphone OEMs’ Market Share in Latin America, Q4 2022 vs Q4 2021
Source: Counterpoint Research Q4 2022 Market Monitor
Commenting on the performance of OEMs in the region, Research Analyst Andres Silva said, “During 2022, Samsung widened its lead in the LATAM market, as its share was more than double that of the next competitor. There has been a significant increase in brand concentration in the region. During 2021, the top five brands represented more than 82% of the market, a 3.5% increase YoY. Three of the top five OEMs gained market share during this period. As the market contracts, big brands that have deeper pockets for promotion and more brand recognition will leave fewer opportunities for smaller brands.”
Market Summary
Background
Counterpoint Technology Market Research is a global research firm specializing in products in the technology, media, and telecom (TMT) industry. It services major technology and financial firms with a mix of monthly reports, customized projects, and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.
Analyst Contacts:
Tina Lu
Andres Silva
Peter Richardson
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