LONDON: Omdia’s latest analysis shows the Latin American (LATAM) smartphone market grew 3% year over year in 1Q 2026 to 34.8 million units—an upside results following record shipments in 4Q and full-year 2025. Growth was underpinned by proactive inventory accumulation by sales channels, portfolio simplification by OEMs with a tilt toward lower storage configurations, and delayed price pass‑through of rising DRAM and NAND costs. Premium demand (above US$500) remained resilient, while value and entry tiers faced tighter affordability.
Samsung led the region, shipping 12.9 million units (+9% YoY) and lifting share to 37%, its highest quarterly level since 1Q 2023, supported by strong performance of A‑series models across low‑end and mid‑high segments. Xiaomi held second, marking a sixth consecutive quarter of growth with 6.0 million units and 17% share, driven by double‑digit gains in Central America and Peru and solid traction of the Redmi Note 15 series in the mid‑high range. Motorola ranked third, contracting 5% YoY to 4.9 million units and 14% share, largely reflecting a 37% drop in shipments of US$100–US$200 devices, where G06 and G17 are key models. HONOR consolidated in fourth with 30% YoY growth to 3.4 million units and a 10% share, propelled by its Play 10 in the entry segment (below US$100), which approached half a million units sold for the first time. Apple completed the top five with a 31% YoY increase, supported by an exceptional performance in Mexico (+80% YoY) and robust reception of the iPhone 17 series.
“Though rising RAM and storage costs were not yet visible on the average sales prices (ASPs) in 1Q, the pressure is real and will be felt more clearly in the second half,” said Miguel Ángel Pérez, Senior Analyst at Omdia. “Front‑loaded deliveries helped sustain sell‑through, but as retail prices begin to reflect higher memory costs from late 2Q onward, demand is likely to soften—especially in entry and low‑end segments that account for roughly 70% of the LATAM market. Additional component cost increases, alongside macro uncertainty and potential inflationary effects from global tensions into 4Q, could further slow demand, extending contraction into 1H 2027.”
“Market dynamics in 1Q 2026 reflected a careful balance between cost pressures and channel execution. Operators and retailers advanced purchases to protect on‑shelf availability and price stability, while OEMs streamlined portfolios and biased SKUs toward leaner storage configurations. High-end demand remained resilient thanks to continued financing options, such as installments, buy-now-pay-later (BNPL) and trade‑in programs; by contrast, shortage and increase in the cost of memory components caused a reduction in the offer and availability of affordable devices.”
Looking into 2Q 2026, inventory normalization and gradual pass‑through of memory cost increases to retail prices are expected to temper sales growth, particularly below US$300, with mix shifting to lower storage variants. In 2H 2026, elevated component costs and macro uncertainty could weigh on demand; nevertheless, holiday launch and promotional cycles, and reinforced financing by operators and retailers could provide partial offsets. Omdia expects that performance will remain uneven across the region, with Brazil, Mexico, and Chile showing relative strength in mid‑to‑upper tiers, while more price‑sensitive markets prioritize tactical promotions and tighter inventory control.
Following a stronger‑than‑expected 1Q, vendors should optimize their product offerings to preserve margins and value clarity by tier; concentrate volume on proven hero models in mid and upper-mid segments; strengthen financing, trade‑in, and loyalty programs to sustain conversion in price‑sensitive cohorts; align shipments closely to real sell‑out and local promotional windows to mitigate over‑stock risk; and differentiate through perceived attributes—battery life, camera, display performance, durability—supported by reliable after‑sales service. Active management of cost and exchange rate risks, backed by scenario planning, will be key to navigating 2H 2026 and laying the groundwork for a lasting recovery into 2027.
