Canalys: The smartphone market in Latin America grew 10% in the third quarter, reaching 35.1 million units.

Canalys reported that in the third quarter of 2024, the smartphone market in Latin America grew by 10% to reach 35.1 million units, marking the region's second highest quarterly shipment volume in history. The main factor driving this growth was the high-value devices priced below $200, accounting for 49% of the total shipments, the highest percentage since the fourth quarter of 2021. In the third quarter, Samsung led the market and was the largest contributor to the overall shipment growth in the region, with shipments reaching 11.3 million units, a 16% year-on-year increase. Although Motorola's shipments remained flat, it reclaimed the second position in the market with 6 million units shipped. Transsion followed closely, with a slower growth rate and stable shipments, increasing by 3% to reach 3.1 million units. OPPO re-entered the top five after six quarters, achieving its highest quarterly shipment volume in the region so far, with a 62% increase reaching 1.9 million units, driven by rapid growth in Mexico and Colombia. Canalys Senior Analyst Miguel Perez stated that in the third quarter of 2024, Samsung emerged as the biggest winner in Latin America, achieving double-digit growth for the first time since the fourth quarter of 2021. The third quarter marked a turning point for Samsung, reflecting its increased focus on regaining competitiveness across price segments and its desire to challenge last year's standout competitors. Samsung's growth was mainly driven by the low-end A series models. Compared to the third quarter of 2023, Samsung's shipments in the sub-$200 segment grew by 42%, accounting for 40% of the company's shipments. Meanwhile, driven by the Galaxy S24 models, Samsung continued to perform well in the high-end market. Smartphones priced at $800 and above accounted for only 15% of Samsung's total shipments but contributed 36% of the shipment value, highlighting its importance in operational robustness and brand positioning. Perez continued, "High-value devices have become the target for almost all manufacturers, leading to intense competition. Samsung and Motorola are leveraging devices priced below $200 to regain market share, defend their scale in the region, and enhance their market competitiveness. Xiaomi and Transsion have achieved significant growth in the last few quarters through devices priced below $200 and need to continue supplying high-value devices to defend their recent market share gains. Ambitious manufacturers such as OPPO, ZTE, Honor, and realme are using the sub-$200 market as a point of entry for growth in the Latin American market. While high-value devices help many manufacturers achieve short-term objectives, a broader product portfolio is equally important for sustainability, brand awareness, and higher profit margins. Relying solely on demand for high-value devices is difficult to sustain market size in the long run." Perez commented, "The third quarter is characterized by manufacturers preparing for the holiday sales peak season, gearing up for growth in the fourth quarter through channel partnerships and marketing efforts. Manufacturers are optimistic about a strong year-end performance in 2024, with the Latin American smartphone market poised to set a record for annual shipments. However, the risk of market saturation looms, and uncertainty from the change in U.S. presidential administration increases the risk of market slowdown and inventory buildup. The Latin American smartphone shipments have achieved double-digit year-on-year growth for five consecutive quarters, but sustained high growth in each quarter exacerbates the risk of oversupply. Sales in the fourth quarter will be crucial in determining whether the market is healthy or oversaturated as it enters 2025."