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Telecom Insider Excerpt
The smartphone market in Latin America is still in its infancy, accounting for only 3% of total handsets unit sales in 2008. With such a low penetration level, the region provides ample room for growth, particularly compared with the global smartphone penetration rate of 12%. Given that Latin America’s mobile subscriber growth rate declined from 24% in 2007 to 19% in 2008, operators are more interested than ever in increasing their ARPS, and encouraging smartphone uptake is an excellent approach to reaching that goal. In fact, Vivo, the leading player in Brazil, recently highlighted in its Q1 2009 conference call for investors how crucial the smartphone base is to its data revenue growth. At the same time, smartphone vendors are stepping up competition in the region with aggressive tactics, including handset bundles, new models, expanded entry-level portfolios and close cooperation with operators. Given the growing interest by operators in smartphones, intensified competition among vendors and the greater potential for growth in Latin America compared with other regions, Pyramid Research expects the region’s smartphone segment to represent an opportunity of 150m handset units over the next five years — 48m handsets units in 2014 alone. The smartphone category will grow from 3% of total handset unit sales in 2008 to 30% in 2014.
This report examines the potential for growth in Latin America’s smartphone market as well as the factors driving this trend by analyzing operators’ and vendors’ strategies. It provides Pyramid Research’s five-year forecast on smartphone adoption in Latin America and looks at vendor positioning, focusing on three cases: Nokia, Research in Motion and Apple. The report examines both relevant moves by operators and the strategies of the major handset vendors in the market, including marketing campaigns and bundles.
Published monthly for each of the world’s most dynamic regions, Telecom Insiders are packed with trend analysis, industry best practices, market sizing and forecasting, competitor analysis, and case studies, providing you information you can leverage to make better business decisions. For more information about Telecom Insiders, please contact Amalia Vega via email at avega@pyr.com or telephone at +1.809.330.4520
Author: Omar Salvador
Publication Date: June 2009
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