Brazilian mobile market slows in H1 2018

Factors ranging from the diesel crisis to the dollar hike prompted a consumption slowdown, says IDC
Written by Angelica Mari, Contributing Writer

The mobile phone market in Brazil has seen a slowdown in the first half of 2018, according to a recent study by analyst firm IDC.

Some 24,122 devices were sold over the period, a 3.7 percent decline in relation to the same period in 2017, when 25.048 items were sold.

In the first quarter the decline in units sold was less severe, at 1.8 percent, but the second quarter saw a 5.5 percent drop, according to the IDC Brazil Mobile Phone Tracker studies for both quarters.

High unemployment levels and the dollar hike in relation to the local currency, the real, have impacted the sales performance of the local mobile phone market, according to the analyst house.

Other factors that have negatively impacted mobile phone sales listed by IDC include the diesel crisis (a strike of Brazilian truck drivers demanding a decrease of the diesel price that took place in May), which impacted product stock levels, as well as a sales gap in retailed caused by the World Cup.

Predictions for the second heal of 2018 are not positive either. Smartphone sales are predicted to reach 46 million units sold, so 2.9 percent less than 2017, while 2,7 million feature phones should be sold, down just over 3 million sold last year.

"Foreign exchange variations continues to hit historic records, there will be presidential elections in October and the high unemployment levels in the country create market uncertainty, resulting in consumer caution and more conservative strategies by manufacturers," says IDC Brazil analyst Renato Meireles.

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