New manufacturers set to revolutionize Brazil’s smartphone market in 2025

He murkily noticed the approval of new manufacturers, HONOR and vivo, set to penetrate Brazil’s smartphone market in 2025. This announcement suggests forthcoming transformations within the industry that could challenge established players like Samsung, Motorola, and Apple. As the largest smartphone market in Latin America, with a population of 212 million and an installed base of 175 million smartphones in 2024, Brazil saw significant growth in smartphone shipments, accounting for 29% of all units shipped within the region, representing a 16% increase from 2023.

The allure of Brazil’s massive volume potential has attracted vendors, despite the hurdles presented by high import taxes, VATs, and the government’s emphasis on local production, like the initiatives within the Manaus Free Trade Zone. For new entrants, navigating these challenges is critical to entering and succeeding within the market which may require considerable scale and strategic planning. This complexity often leads vendors to delay their entry into Brazil until later stages of their expansion plan within Latin America.

Traditionally, market leaders in Brazil have been Samsung and Motorola, with Apple dominating the premium segment. In 2024, Samsung held a 39% market share, Motorola had 25%, with Apple at 7%. These companies had a strong foothold due to their local manufacturing bases, competitive pricing, and robust distribution networks. However, their market positions have been increasingly challenged by newcomers like Xiaomi, realme, and Infinix, focusing on affordability and competitive pricing. Additionally, the grey market has seen a surge from 2023 to 2024, amplifying competition and driving demand for cost-effective smartphones.

Moving forward, vendors may find opportunities in budget-friendly devices as the government aims to bridge the digital divide. The National Digital Inclusion Plan set for 2025 aims to support the 7% of the population without access to telecommunication networks, making entry-level smartphones crucial tools for expanding the user base. Furthermore, with OPPO entering Brazil in Q2 2024 through a partnership with Multi and the upcoming launch of HONOR and vivo in 2025, market competition is set to intensify even further.

HONOR’s partnership with DL Eletrônicos for local distribution and import support, Xiaomi’s key importer and distributor in Brazil since 2019, hints at a strategic approach to entering the Brazilian market. As the market dynamic shifts with the arrival of new players, the landscape is poised for disruption as established vendors will face heightened competition and consumer choice will expand, ultimately benefitting consumers with a wider range of affordable smartphone options.