Press Release
By Canalys (Omdia)
The Latin American smartphone market contracted 4% year on year in Q1 2025, ending a six-quarter growth streak, with total shipments reaching 33.7 million units, according to the latest Canalys (now part of Omdia) research.
Samsung retained first place with 7% year-on-year growth, shipping 11.9 million units, driven by strong demand for its entry-level A06 and A16 models, which made up nearly half of its shipments. This performance underscores the company’s strategic focus on defending its position in the low-end segment and countering pressure from emerging, price-driven competitors.
Xiaomi secured second place for the second consecutive quarter with 5.9 million units and 10% growth, supported by the continued success of its Redmi 14C 4G and Note 14 series, reinforcing its strategy in the US$100 to $299 price segment.
Motorola fell to third place after a 13% decline to 5.2 million units, as its reliance on low-end offerings like the G15 and G05 limited its competitiveness.
HONOR rose to fourth position with 2% growth and shipping 2.6 million units, maintaining strong momentum through its X-series line up.
TRANSSION slipped to fifth place, with shipments dropping 38% to 2.1 million units, its first decline in the region, amid intensifying competition and likely adjustments in channel inventory.
“Economic uncertainty, particularly fears of tariff hikes, weighed heavily on Latin America’s smartphone market in Q1 2025,” said Miguel Pérez, Senior Analyst at Canalys (now part of Omdia). “Vendors pulled back on aggressive sales strategies, retailers cut inventory levels and consumers delayed non-essential upgrades, lengthening the replacement cycle. Following a period of rapid vendor expansion into untapped markets like Central America and Ecuador, this correction was expected. Vendors now face a more challenging landscape amid softening demand, intensifying competition and rising inventory risks.”
In Q1 2025, the regional smartphone market showed stark polarization, with growth primarily being confined to the entry-level and premium segments. Despite rising costs, brands continue to invest in the sub-US$100 segment to remain accessible to price-sensitive buyers. Samsung and Apple maintain dominance at the high end, fueled by strong demand for the S25 and iPhone 16 series. However, the mid-range segment, which accounts for 78% of total shipments, remains the core battleground. This segment balances affordability and performance, attracting upgraders and mainstream users alike. As growth at the edges proves insufficient, competition in this segment will intensify through 2025, as vendors focus on profitability and long-term positioning in a tightening market.
Brazil, representing 28% of total shipments to the region, was the only market among the top five regional markets that showed year-on-year growth in Q1 2025, managing to increase its shipments by 3% to reach 9.5 million units, driven by the increased investment of Chinese brands like HONOR, Xiaomi and realme.
Mexico was the second-largest market in the region in terms of the number of devices shipped, accounting for 22% of the total shipment volume. However, its device shipments registered an 18% contraction, marking two consecutive declines. This drop is attributed to intense competition among local market players, who, in 2024, drove the renewal of devices in the entry-level to mid-range segments. This led to an increase in inventories, which has made it difficult for sales channels to more aggressively resume restocking with new devices.
Central America, which during 2024 consolidated its position as the third most important market in the region, recorded a decline in its shipments for the first time in seven quarters, falling by 7% year on year in Q1 2025. This was also due to the accumulation of inventories, driven mainly by emerging brands such as TRANSSION, ZTE and OPPO, as well as by the slowdown in market dynamics.
The Colombian and Peruvian markets in Latin America ranked fourth and fifth, respectively. They continued the irregular trend of the past year, slightly declining in Q1 2025 despite starting the year with economic growth. However, their performance is expected to improve in the upcoming quarters as consumption recovers.
“Canalys (now part of Omdia) projects a 1% contraction in the Latin American smartphone market for 2025,” added Pérez. “As an emerging region, Latin America remains highly vulnerable to global headwinds, particularly US-China tensions, which could trigger inflation and currency volatility. Combined with regional socioeconomic uncertainty and the potential impact of new US tariffs, these pressures will likely dampen spending, especially in the entry-level segment, which forms the backbone of the Latin American smartphone market. This could lead to further inventory buildup and increased strain on vendors.”
“Behavioral shifts observed in Q1 2025 already point to deeper structural changes that manufacturers can no longer overlook,” noted Pérez.
“Success this year will hinge on maintaining lean, responsive inventory strategies in fast-moving segments, while also strengthening value propositions across product lines. Vendors that balance operational discipline with targeted innovation will be best positioned to navigate market volatility. In a landscape where traditional growth patterns are being redefined, portfolio optimization, precise marketing and enhanced consumer experiences will be essential to remain competitive.”
About Canalys
Canalys, now part of Omdia, is a leading global technology market analyst firm with a distinct channel focus. We strive to guide clients on the future of the technology industry and to think beyond the business models of the past. We’ve delivered market analysis and custom solutions to technology vendors worldwide for over 25 years. Our research covers emerging, enterprise, mobile and smart technologies. Understanding channels is at the heart of everything we do. Our insightful reports, data and forecasts inform our clients’ strategies, while the Canalys Forums and Candefero online community give the channel feedback opportunities. We stake our reputation on the quality of our data, our innovative use of technology and our high level of customer service.
