The Zhitong Finance App learned that Canalys published an article stating that in the first quarter of 2024, the Latin American smartphone market continued to flourish, with shipments reaching 34.9 million units, an increase of 26% over the previous year. This marks the third consecutive quarter of double-digit growth in the market. Samsung's cost-effective A series devices helped Samsung continue to maintain its leading position, with shipments reaching 11.1 million units, an increase of 6%. Motorola continued to rank second, with 5.9 million units shipped, a slight increase of 1%. Xiaomi (01810), Audio (688036.SH), and Honor continued to show strong growth trends, with increases of 45%, 215%, and 293%, respectively. Shipments reached 5.3 million, 3.4 million, and 2.6 million units respectively, ranking among the top five manufacturers.

Miguel Perez, senior consultant at Canalys, said, “Macroeconomic stability, increased channel inventory levels, and switching cycles for devices purchased during the pandemic have played a critical role in maintaining the growth momentum of the Latin American smartphone market. This recovery in demand is widespread. In the first quarter of 2024, nine of the top ten manufacturers achieved significant growth. It is worth noting that the medium- to low-end market performance is strong. The models with the most shipments include Samsung's low-end A series and Motorola's G series. Fierce market competition not only provides consumers with multiple choices, but also pushes manufacturers to stand out from continuous innovation and prepare for a potential market slowdown. Strategies such as opening more brand stores, upgrading online shopping platforms, and expanding physical retail outlets are all key for manufacturers to gain a foothold in the market.”

Perez further explained: “Several strong growing players in Latin America are broadening their product ecosystems to consolidate and expand their market positions. Products such as wearable wristband devices, TWS, and tablets are not only designed to provide rich product choices, but also stimulate consumer interest and maintain brand differentiation. Over the long term, these strategies aim to increase revenue and improve customer loyalty. In the short term, these ecosystem products are more likely to increase brand awareness and position themselves well in promotions and bundles. The focus on ecosystem devices shows huge business opportunities in the Latin American market. Compared with the global market, the adoption rate of each smartphone ecosystem device sold is still low. Looking ahead, manufacturers must maintain the value of their ecosystems while avoiding compromising long-term value in order to gain short-term benefits.”

Perez said, “In Latin America, AI performance and functionality are increasingly important in smartphone marketing strategies, but the dominant position of low-cost smartphones in the market poses unique challenges. Although higher-level generative AI features occupy a central position in high-end device marketing and product strategies, it will take time for these technologies to enter the middle and lower end segments of the region. In the first quarter of 2024, only 7% of smartphones were priced at $800 or more, while up to 82% of smartphones were priced under $400. Therefore, although marketing activities may cause consumers to have high expectations for cutting-edge AI features, the factory business must ensure that these expectations match the actual capabilities of lower-priced models to avoid consumer disappointment and the high costs of trying to upgrade and upsell in this price-sensitive market.”