Solid signs of rebounding in Brazil’s smartphone market

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    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)