Brazilian mobile market shows signs of recovery

Retailers start to replace stock and predictions for the rest of the year are positive, says IDC.
Written by Angelica Mari, Contributing Writer

Mobile phone sales in Brazil have been showing signs of recovery in 2017 after the decline seen as a result of the economic slowdown, according to a new study by analyst firm IDC.

Some 12,8 million devices sold in the second quarter, up 5,9 percent on the same period in 2016. The number is in line with first quarter figures, which grew by 3,7 percent on Q1 2016, with 12,3 million devices sold.

"The mobile market has returned to very expressive numbers, mainly because Brazilians is replacing handsets bought at least three years ago, since this has been the average lifespan of the battery and screen," says Leonardo Munin, IDC research analyst for the Latin American mobile market.

"And this [growth] trend is set to continue in the coming months," he adds.

Brazilians are also choosing more robust devices when buying new mobile phones, according to IDC. Of the total 12,8 million units sold in Q2, 12,1 million were smartphones, the remainder being feature phones.

There has been a decline of 44 percent in feature phone sales during the second quarter of 2017 in relation to the same period of 2016.

The increased consumer demand for smartphones has prompted manufacturers to significantly lower prices due to competition, says the analyst, with discounts reaching up to R$300 ($95). The average ticket for devices in Brazil dropped from R$1067 ($339) in Q1 to R$1044 ($332) in Q2.

"This is great for those wanting to buy, but for the industry as a whole it is really bad, since the market is concentrated in a smaller pool of manufacturers, with a reduction in growth prospects in terms of pricing," says IDC's Munin.

However, the analyst firm's predictions for the mobile market in Brazil for the whole of 2017 are positive. The forecast is that sales will increase 12,6 percent this year in relation to 2016 with 49 million units sold.

Editorial standards