Canalys: The Latin American smartphone market is expected to grow by 15% year-on-year in 2024, reaching a historical record high shipment volume of 137 million units.

Canalys' latest research shows that by 2024, the Latin American smartphone market will grow by 15%, reaching a historic high shipment volume of 137 million units. This growth is primarily driven by the recovery of device demand, as well as the replacement cycle and aggressive promotional strategies by manufacturers. Samsung continues to lead the market with a 12% growth in shipments, reaching 42.9 million units. Motorola, despite a 4% year-on-year decrease, maintains its second position with a shipment volume of 22.8 million units. At the same time, Xiaomi (01810) closely follows with a 20% year-on-year increase in shipments to 22.7 million units, narrowing the gap between the two, and Xiaomi is poised to surpass Motorola in the region. Transsion solidified its position as the fourth in the Latin American market with a growth rate of 40%, reaching a shipment volume of 12.8 million units. Meanwhile, Honor made a remarkable debut in the top five with a 79% year-on-year increase in shipments to 8 million units, mainly driven by its rapid expansion in the Central American market, with year-on-year growth in that region exceeding 200%. Canalys Senior Analyst Miguel Prez said, "The historic milestone of 137 million units in smartphone shipments in the Latin American market in 2024 seems to indicate that all players in the market have been successful this year. Emerging manufacturers such as Xiaomi, Transsion, Honor, OPPO, and realme have reached record shipment volumes, stimulating market demand and intensifying competition, especially in the sub-$300 price segment, which accounted for 72% of total shipments for the year. However, we need to further analyze whether this growth reflects strategic positioning by manufacturers or short-term responses to changes in the competitive environment." Prez added, "From a competitive standpoint, the core feature of the Latin American smartphone market in 2024 is the battle for market share. Traditional manufacturers like Samsung and Motorola are trying to regain lost share, while Chinese manufacturers like Xiaomi and Transsion are continuously expanding their market share, further consolidating their influence in the region. This competition primarily focuses on the sub-$200 price segment, explaining the 94% year-on-year growth in this segment in 2024. Therefore, the intensifying competition in the Latin American market largely stems from manufacturers' continued investment in high-value-for-money products. This trend enhances consumer choice but also compresses the profit margins of manufacturers and channels, and to some extent limits the promotion and monetization opportunities for cutting-edge mobile technology in the market." Prez stated, "While competition is expected to drive demand growth, it is a high-risk choice for manufacturers reliant on low-profit subsegments. Brands lacking a balanced product line across price segments and ecosystem devices may face market instability, especially in unforeseen factors such as inventory build-up and slowing demand - a situation that becomes more likely after record shipments. In addition, Canalys' latest forecast shows a slight 1% decline in the Latin American smartphone market in 2025. This indicates that the successful manufacturers in the region will not be those achieving scale in the low-end market, but those able to increase shipments and brand positioning in higher-value segments."