Brazil remains in fourth place in the world ranking of smartphone sales
For the second year in a row, the Brazilian cell phone market has fallen. According to the IDC Brazil Mobile Phone Tracker Q4 study, carried out by IDC Brasil – leader in market intelligence, consulting services and conferences with the Information Technology and Telecommunications industries, throughout 2016, 48.4 million mobile phones were sold devices, which represents 5.2% less than in 2015, when 51.1 million devices were sold.
“Even with a drop in sales over the last two years, Brazil has managed to remain in fourth place among the countries that sell smartphones the most in the world and continues to be strategic for manufacturers”, says Leonardo Munin, research analyst for the cell phone market at IDC for Latin America.
Of the total handsets sold in 2016, 43.5 million were smartphones (a drop of 7.3%) and 4.9 million were feature phones (an increase of 18.5%). “The first half of 2016 was very weak and directly reflected on smartphone sales. It was a period of high dollar rates and a lot of political and economic indecision. In the first three months of last year, for example, manufacturers even paused production due to lack of parts (or inputs) due to market uncertainties. In the second half, with the supply of devices stabilized and the consumer a little more confident, there was an improvement, especially in the last quarter”, evaluates Munin.
The IDC study also reveals a very different behavior in relation to the brands that dominate the cell phone market in Brazil. According to the analyst, until 2014, 94% of the devices sold belonged to six global brands. In 2016, the number became 80%. “Smaller global or national manufacturers have gained an important share of the market. The scenario favored those who work with more affordable prices. In addition, companies began to invest more to serve a consumer who demands a differentiated design, durability, memory and camera capacity and who spends more to own a cell phone, so much so that the average ticket for the devices went from R$ 882, in 2015, to R$ 1050, in 2016.
The 4th quarter of 2016 showed growth of 16% compared to the same period of 2015. 13.8 million handsets were sold, of which 12.5 million were smartphones (growth of 14%) and 1.3 million were feature phones (growth of 31%). “The last quarter was surprising, mainly due to Black Friday, which gained strength in recent years and established itself as the main date for the cell phone market. Many consumers anticipated year-end purchases and others waited for the date to switch devices”, completes the IDC analyst for Latin America.
Projections for 2017
For Munin, the scenario in 2017 is a little more optimistic. The forecast is that 49.2 million devices will be sold during the year, that is, 1.6% more than in 2016. Of this total, almost 45 million will be smartphones (with a growth of 3%). “After two consecutive years of decline, this result will be very satisfactory. We can say that the worst for the smartphone market is over.” In addition to better macroeconomic factors, the channels will have more assertive portfolios with the products that consumers want. “We also believe in strong competition among the main manufacturers to offer attractive prices and devices with good specifications. The consumer will benefit”.
Still according to IDC forecasts, 2017 should be a year of cell phone replacement. “Today, we have approximately 153 million devices in use in Brazil, 121 million smartphones and 32 million feature phones, that is, 21% of the population still have to migrate from a conventional phone to a smart device. Another relevant factor is that the number of old smartphones in this base of 121 million is high, which will boost renewals”, concludes the IDC analyst.
“Even with a drop in sales over the last two years, Brazil has managed to remain in fourth place among the countries that sell smartphones the most in the world and continues to be strategic for manufacturers”, says Leonardo Munin, research analyst for the cell phone market at IDC for Latin America.
Of the total handsets sold in 2016, 43.5 million were smartphones (a drop of 7.3%) and 4.9 million were feature phones (an increase of 18.5%). “The first half of 2016 was very weak and directly reflected on smartphone sales. It was a period of high dollar rates and a lot of political and economic indecision. In the first three months of last year, for example, manufacturers even paused production due to lack of parts (or inputs) due to market uncertainties. In the second half, with the supply of devices stabilized and the consumer a little more confident, there was an improvement, especially in the last quarter”, evaluates Munin.
The IDC study also reveals a very different behavior in relation to the brands that dominate the cell phone market in Brazil. According to the analyst, until 2014, 94% of the devices sold belonged to six global brands. In 2016, the number became 80%. “Smaller global or national manufacturers have gained an important share of the market. The scenario favored those who work with more affordable prices. In addition, companies began to invest more to serve a consumer who demands a differentiated design, durability, memory and camera capacity and who spends more to own a cell phone, so much so that the average ticket for the devices went from R$ 882, in 2015, to R$ 1050, in 2016.
The 4th quarter of 2016 showed growth of 16% compared to the same period of 2015. 13.8 million handsets were sold, of which 12.5 million were smartphones (growth of 14%) and 1.3 million were feature phones (growth of 31%). “The last quarter was surprising, mainly due to Black Friday, which gained strength in recent years and established itself as the main date for the cell phone market. Many consumers anticipated year-end purchases and others waited for the date to switch devices”, completes the IDC analyst for Latin America.
Projections for 2017
For Munin, the scenario in 2017 is a little more optimistic. The forecast is that 49.2 million devices will be sold during the year, that is, 1.6% more than in 2016. Of this total, almost 45 million will be smartphones (with a growth of 3%). “After two consecutive years of decline, this result will be very satisfactory. We can say that the worst for the smartphone market is over.” In addition to better macroeconomic factors, the channels will have more assertive portfolios with the products that consumers want. “We also believe in strong competition among the main manufacturers to offer attractive prices and devices with good specifications. The consumer will benefit”.
Still according to IDC forecasts, 2017 should be a year of cell phone replacement. “Today, we have approximately 153 million devices in use in Brazil, 121 million smartphones and 32 million feature phones, that is, 21% of the population still have to migrate from a conventional phone to a smart device. Another relevant factor is that the number of old smartphones in this base of 121 million is high, which will boost renewals”, concludes the IDC analyst.
EN 
PT 
