Friday, June 06, 2025

Economic uncertainty shakes the regional smartphone market

In response to the threat of additional tariffs, manufacturers slowed their sales strategies, retailers reduced inventories, and consumers delayed upgrades, thereby extending the replacement cycle, Canalys said. The analyst warned that high inventory levels persist and that competition will intensify in the mid-range market, which accounts for three out of every four smartphones sold.

The Latin American smartphone market contracted by 4% year-on-year in the first quarter of 2025, ending a six-quarter streak of growth, with total shipments reaching 33.7 million units, according to the latest study by Canalys.
The causes of the decline lie in economic uncertainty, particularly the fear of tariff hikes, which “significantly affected the Latin American market,” according to Miguel Pérez, senior analyst at Canalys.

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América Latina · Smartphones & Devices06/06/2025

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In response to the threat of additional tariffs, manufacturers slowed their sales strategies, retailers reduced inventories, and consumers delayed upgrades, thereby extending the replacement cycle, Canalys said. The analyst warned that high inventory levels persist and that competition will intensify in the mid-range market, which accounts for three out of every four smartphones sold.

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