Solid signs of rebounding in Brazil’s smartphone market


    Brazil’s smartphone market, the largest in Latin America, is showing signs of rebounding as the country begins to present signs that recession.begins do recede.In 2016 as a whole the smartphone market declined 16%, but in Q4 2016 growth was 15% over the previous quarter, according to a Counterpoint Research referred in Business Insider.

    Other key points from the report:

    Replacement rates are continuing to fall, but inexpensive phones are fueling the resurgence. The massive strain the economic downturn left on consumer confidence depleted demand for smartphones, however, low-cost LTE-enabled devices — less than $100 — proved to hurdle this barrier. Shipments of these devices grew 58% in 2016.Shipments of LTE-enabled smartphones grew 53% in 2016. The segment now accounts for 86% of overall smartphone shipments.

    Lastly, Brazil’s smartphone market is one where the mass is controlled by a few. The top five brands capture 75% of the overall market. This is likely caused by massive import taxes on devices not made in the country. For that reason, it’s imperative for brands to have a manufacturing presence. Without one, even successful international vendors, including Xiaomi and Sony, have been relegated to more niche pockets of the market.

    Article (Business Insider)