LATAM Smartphone Market Reached Highest Ever ASP in 2Q18

Consumers in Latin America are slowing down in their replacement rate, but investing more money per purchase

In Q2 2018, the LATAM smartphone shipments grew 2 percent YoY in volume and 8 percent in value. Chile and Mexico were the markets that led the growth, driven in part by Huawei and Motorola. 

Commenting on the findings, senior analyst, Tina Lu, said: “LATAM’s smartphone sell-in grew a marginal 2 percent, despite the economic volatility created by political turbulence. Motorola and Huawei led the volume growth with high double-digit growth, benefiting from the aggressive launch of new products in the mid-range (USD $100-$250) segment.

“Consumers in Latin America are slowing down in their replacement rate, but investing more money per purchase. Despite the multiple devaluations that most LATAM currencies have experienced during Q2 2018, the smartphone average selling price (ASP) reached USD187, around an 8 percent YoY increase.  

"This was the region’s highest ASP ever. LATAM device prices are highly sensitive to currency fluctuations, as most of the countries in the region import devices, and those that require local manufacturing, still depend highly on sourcing parts internationally. Price band growth has been polarizing at both ends of the price spectrum.”

* Samsung captured more than 36 percent of the LATAM market. It was, once again, the absolute leader in the market, but it lost share YoY.

* Despite the decline in share, Samsung had a 25 percent increase in ASP, thanks to increasing midrange sales.

* Motorola reached 12.4 percent market share. The refreshed models in the E and G series have increased Motorola’s overall sell-in volumes. However, its Moto C is still the best-selling model and this success affected its ASP, driving it to decline 33 percent YoY.

* Huawei reached 11.8 percent market share. It was third in the market, but just 0.8pp behind Motorola.

* Huawei’s ASP increased 32 percent YoY. It is the brand with the highest growth amongst the top selling brands.

* LG had the biggest YoY drop; a decline of more than 26 percent. It is the only brand in the top five chart that had flat YoY movement on ASP.

* Apple remained almost flat with 4 percent market share, though it had more than 10 percent growth in ASP.

* Apple’s ASP growth was driven by the launch of iPhone X which was offset by strong sales of iPhone 6 in the region.

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