Xiaomi rises as third biggest player in Latin America market in Q4 2020

  • LATAM smartphone shipments dropped 10.3 percent YoY (Year over Year) in Q4 2020 but increased 9.7 percent QoQ (quarter-on-quarter) driven by recovery from the pandemic.
  • The market suffered from a supply shortage in Q1 2020, especially in Brazil, where local manufacturers also experienced parts shortages.

After its dominance in APAC regions for several years, the Chinese global smartphone player Xiaomi for the first time emerged as the third biggest player in the region in Q4 2020 in the Latin America (LATAM) region. The average selling price (ASP) in the region decreased by 6.4 percent during the quarter. LATAM smartphone shipments dropped 10.3 percent YoY in Q4 2020 but increased 9.7 percent QoQ driven by a recovery from the pandemic and partly due to seasonality, according to the latest Market Monitor research from Counterpoint Research. The drop in shipments was the least in Brazil and Peru.

Principal analyst Tina Lu, Counterpoint Research said, “Smartphone shipments in 2020 dropped 19.6 percent. The market suffered from a supply shortage in Q1 2020, especially in Brazil, where local manufacturers also experienced parts shortages. From the end of March and through May, most of the regional demand was halted due to broad lockdowns in most LATAM countries. The market started to recover slowly after June.”

Xiaomi

During H2 2020, there was a surge in online promotion events, like Cyber Week and Black Friday. Such events increased further in the first part of Q4 2020. However, by the end of the quarter, promotions shifted toward the offline mode to tap the potential there. Samsung was among the most aggressive in promoting its online channel and expanding its presence in the region.

Research associate Monika Sharma said, “Samsung remained the region’s absolute leader in 2020 with 40.5 percent share. In fact, it was leading in all LATAM countries during the year. Its share in Brazil, the biggest market in LATAM, reached almost 50 percent. Motorola, which is a comfortable second in the LATAM market, increased its share by 3 percent points helped by its assembling operations in Brazil and Argentina, and its strong brand recognition in Mexico and Colombia.”

Xiaomi

Xiaomi experienced the biggest growth in participation. The company more than doubled its market share to become the third biggest player in Q4 2020. This is the first time Xiaomi has emerged as the third biggest player in the region. Looking at the trend, it will surely remain the third player in LATAM in 2021. Samsung, Motorola and Xiaomi all took advantage of Huawei’s weakening position due to the US ban.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Hot Topics

Related Articles