Samsung Electronics Put on Alert

Major smartphone makers’ shares in the Latin American market in the third quarter of 2020

Chinese smartphone companies are seeking to expand their presence in the Latin American market, a stronghold of Samsung Electronics.

According to market research firm Counterpoint Research and, Chinese smartphone brand Oppo entered the Latin American market for the first time in August by forging a partnership with America Movil, Mexico's largest telecommunications company. Oppo is selling smartphones through Telcel, a telecommunications company affiliated with America Movil.

Another Chinese brand Vivo set up branches in Colombia and Chile in September. Vivo's smartphones will be sold through Chile's No. 1 mobile carrier Entel. Oppo and Vivo are the 5th to 6th largest companies in the global smartphone market. Their market shares are around 8 percent each in the third quarter of 2020.

Realme is also taking aim at the Latin American market. The company officially released its smartphones in Peru and Brazil following Colombia and Chile. Realme is the fastest growing smartphone brand in the world. Its global market share in the third quarter of 2020 reached 4 percent, the seventh-largest. During the same period, Realme’s smartphone shipments increased 130 percent compared to the same period of 2019.

Of note are strategies of Chinese brands. They commonly aim to replace Huawei whose market share is plummeting in the Latin American market. But they are tapping into different countries. Oppo is targeting Mexico, while Vivo is eying Chile and Colombia. Both companies are affiliates of BBK Group in China. One Plus and Realme are focusing on Brazil, Peru and Chile.

However, many analysts say that it will be a big challenge for Chinese brands to challenge Samsung Electronics’ dominance in the Latin American smartphone market. In Latin America, where medium and low-priced phones are popular, Samsung Electronics has a variety of product lineups ranging from ultra-low-priced phones in the 100,000 won range to luxury flagship models. It has many loyal customers in many countries of the region. In some of them, its market share exceeds 60 percent. However, considering that Chinese brands have been rapidly increasing their market shares in Southeast Asia with budget models, Samsung Electronics cannot remain complacent.

Samsung Electronics dominated the Latin American smartphone market with a 45 percent share in the third quarter of 2020, Counterpoint Research said. Second place was taken by Motorola (20 percent). Motorola was followed by Huawei (eight percent), Xiaomi (six percent), LG Electronics (four percent), and Apple (four percent). Compared to the end of 2019, Samsung Electronics' market share swelled 7 percentage points and Huawei's market share pared down by about five percent. In the third quarter, Chinese brands' combined market share stood between 35 percent and 39 percent in Latin America.

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