Smartphone sales soar in Brazil

The second quarter marked the great turning point of smartphones in the Brazilian market. Sales of smart cell phones surpassed, for the first time, that of traditional devices. According to IDC Brasil, a leader in market intelligence, consulting services and conferences with the Information Technology and Telecommunications industries, from April to June, approximately 15 million cell phones were sold in the country, of which 54% were smartphones, against 46% feature phones (traditional cell phones).
 
According to the IDC Brazil report, the total cell phone market grew by 3% in the second quarter compared to the same period in 2012. While smartphone sales grew by 110%, traditional cell phones had a retraction of 35%.
 
For Leonardo Munin, market analyst at IDC Brasil, the good result achieved in the quarter proves that the migration of feature phones to smartphones is indeed happening, and at a very fast pace, surprising even the expectations made at the beginning of the year for this market. The strong demand for smartphones on Mother's Day, for example, left several manufacturers without equipment stock.
 
“This impressive growth in smartphones was due to several distinct and complementary movements, such as the expansion of the product mix in different price ranges by manufacturers, the increase in promotions and the way in which the devices are being displayed both in operator as well as in retail”, comments Munin. He also points out the beginning of the application of tax relief (MP do Bem) for local smartphone producers as an important factor, lowering prices at the end and boosting sales.
 
The average price of smartphones, which was around US$316 in the first quarter, dropped to US$240, which partly explains the explosion in sales and the fact that these devices have become popular. However, IDC sees a market full of opportunities in all price categories, including the high-end, where competition between manufacturers is growing. “Lower-priced smartphones continue to gain market share, but the key to the manufacturers' success is keeping this low-price offering in addition to offering premium products and services as well,” says Munin.
 

Of the total of 8.3 million smartphones sold in the second quarter, 90% were devices with Android operating system. IDC data also point to a significant increase in the number of multi-sim smart phones, which a year ago represented 15% on the market and today correspond to more than 40%.
 
“The expectation is now for better settings on low and mid-end devices. Bigger screens and higher quality cameras are some of the requirements that must evolve in these entry-level market categories. The high-end market will gain launches by the end of the year, which should heat up and intensify competitiveness in the category”, concludes the IDC analyst.