Canalys: Total smartphone market shipments in Latin America in the first quarter were 33.7 million units, down 4% year on year

The Zhitong Finance App learned that Canalys's latest data shows that in the first quarter of 2025, the Latin American smartphone market fell 4% year on year, ending six consecutive quarters of growth, with a total shipment volume of 33.7 million units. With 11.9 million units shipped, an increase of 7% over the previous year, Samsung steadily ranked first. Driven by strong demand for the entry-level models A06 and A16, these two models account for almost half of its total shipments, which indicates its strategic focus on actively defending the lower end market and dealing with emerging price-oriented competitors. Xiaomi ranked second for the second consecutive quarter with 5.9 million units, a 10% year-on-year increase. The continued popularity of the Redmi 14C 4G and Note 14 series strengthened its market strategy in the $100 to $299 price range.

Motorola, on the other hand, dropped to third place, with 5.2 million units shipped, down 13% year over year. Its reliance on low-end products such as the G15 and G05 limited its competitiveness. Thanks to the strong performance of the X series, Honor continued to grow by 2% year-on-year, with 2.6 million units shipped, rising to fourth place. Mainly affected by fierce competition and channel inventory adjustments, Radio ranked fifth, with shipments of 2.1 million units, a sharp decline of 38% over the previous year. This is the first time it has declined in the region.

Canalys (Senior Analyst Miguel Pérez) said: “Economic uncertainty, particularly concerns about tariff increases, seriously affected the Latin American smartphone market in the first quarter of 2025. Manufacturers have tightened aggressive sales strategies, retailers have reduced inventory, and consumers have delayed non-essential equipment upgrades and extended switching cycles. This adjustment was to be expected after the manufacturer rapidly expanded into untapped markets such as Central America and Ecuador. Vendors are facing a more challenging market environment with weak demand, increased competition, and rising inventory risk.”

In the first quarter of 2025, the Latin American smartphone market showed a clear trend of polarization, with growth mainly concentrated in the entry-level and high-end market segments. Despite rising costs, major brands continue to invest in the ultra-low price segment below $100 to target price-sensitive users. Samsung and Apple continue to dominate the high-end market, thanks to strong demand for the S25 and iPhone 16 series. However, the mid-tier market, which accounts for 78% of total shipments, is still the main battleground. This price segment takes into account cost performance and attracts switch users and mainstream consumers. As the growth of marginal markets makes it difficult to support the overall market, manufacturers will continue to increase their competitiveness in the mid-tier market in 2025, focusing on profits and long-term market layout to cope with the increasingly tight market environment.

Brazil accounts for 28% of the region's total shipments, and is the only market among the top five Latin American markets to achieve year-on-year growth in the first quarter of 2025. Shipments increased 3% year-on-year to 9.5 million units. This increase was mainly due to increased local investment by Chinese brands such as Honor, Xiaomi, and Realme.

Mexico is the second-largest market in the region, with shipments accounting for 22% of total shipments. However, its shipments fell 18%, for the second consecutive quarter of decline. This decline is mainly due to intense competition in the local market. In 2024, local manufacturers drove a wave of switching between entry-level and mid-range models, leading to an increase in inventory, making it difficult for sales channels to quickly resume replenishment efforts for new models.

Central America consolidated its position as the region's third-largest market in 2024, but shipments in the first quarter of 2025 fell for the first time in seven quarters, down 7% year over year. This is mainly due to inventory backlogs caused by emerging brands such as Transom, ZTE, and OPPO, as well as a slowdown in market demand.

The Colombian and Peruvian markets ranked fourth and fifth respectively. Despite economic growth at the beginning of the year, these two markets continued the volatile trend since last year and experienced a slight decline in the first quarter of 2025. However, performance is expected to improve in the next few quarters as consumption gradually recovers.

Canalys predicts that the Latin American smartphone market will decline slightly by 1% in 2025. Pérez added: “As an emerging market, Latin America is vulnerable to global economic uncertainty, particularly the tension between China and the US, which may trigger inflation and currency fluctuations. At the same time, socioeconomic uncertainty within the region and the potential impact of new US tariffs will also curb consumer spending, particularly in the entry-level market, which forms the main force of the Latin American smartphone market. This could lead to further inventory backlogs and increase pressure on manufacturers.”

“The behavioral changes observed in the first quarter of 2025 have shown deep structural changes that manufacturers cannot ignore,” Pérez said. The key to this year's success is maintaining lean and flexible inventory management, particularly in the FMCG segment, while strengthening the value proposition of each product line. Vendors that can balance operational discipline and precise innovation will have an advantage in dealing with market fluctuations. In an environment where traditional growth models are being redefined, optimizing product portfolios, accurate marketing, and improving the consumer experience will be the core elements of maintaining competitiveness.”