XIAOMI BECAME THE 3RD LARGEST SMARTPHONE BRAND IN SOUTH AMERICA IN Q4 2020 : COUNTERPOINT REPORT


Data from Counterpoint Research shows that in the Q4 of 2020, Huawei dropped out of the top five smartphone shipments in South America. As we usually see in the latest reports of the smartphone market, Xiaomi benefited from the decline of competitors and claw it's way to the top three.


Xiaomi’s market share increased from 4.4% in the Q4 of 2019 to 6.7%. It ranks third after Samsung (36.9%) and Motorola (18.4%). South America is one of those rare markets where Lenovo still in the top five.


Counterpoint Research assistant Monika Sharma told that Xiaomi experienced the biggest growth 4th quarter. It has become the third-largest player in the region for the very first time.


‘From a trend point of view, by 2021, it'll definitely remain the third-largest player in South America,’ She added.


Sharma also added that the top three manufacturers ‘took advantage of Huawei’s decline,’ and Counterpoint Research attributed this to the impact of the  US sanctions on Huawei's supply chain.

It's also worth noting that Huawei sold its Honor sub-brand during this quarter. So it's unclear whether the decline in market share reflects this sale.

SMARTPHONE  SALES are DECREASING

Apple and LG ranked fourth and fifth, with market shares of 5.6% and 4.6%, respectively.

Overall, shipments in South America in Q4 fell by 10.3% year-on-year. Though Counterpoint Research emphasized the development from the previous quarter. It acknowledged that it has recovered from the impact of the coronavirus epidemic and regular seasonal factors.


Tina Lu, a senior analyst, said that the market started to improve in the last half of 2020, with the surge in promotional activities.

‘Smartphone shipments in 2020 dropped by 19.6%. The market suffered from a supply shortage in the 1st quarter of 2020, especially in Brazil, where local manufacturers also experienced component shortages. From the end of March to May, most of the regional demand was halted thanks to broad lockdowns in most South American countries. The market began to recover slowly after June.’

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