According to the latest data from Omdia, the Latin American smartphone market grew by 3% year-on-year in the first quarter of 2026, reaching 34.8 million units. This performance represents a continuation of growth following record shipments in the fourth quarter and full year of 2025. The quarterly growth was primarily supported by several factors: channels building inventory in advance, original equipment manufacturers (OEMs) simplifying product portfolios (favoring lower storage configurations) to manage cost pressures, and a delay in the pass-through of rising DRAM and NAND costs to end-user prices.
From a structural perspective, demand in the high-end market segment (above $500) remained resilient, while the value and entry-level segments faced stronger constraints on price affordability, with overall purchasing power tightening. In the regional market, Samsung led with shipments of 12.9 million units and a 37% market share, representing a 9% year-on-year increase and achieving its highest quarterly share since the first quarter of 2023. This growth was primarily driven by the strong performance of the A-series models in the low-end and mid-to-high-end segments.
Xiaomi ranked second, achieving growth for the sixth consecutive quarter with shipments of 6 million units and a 17% market share. Its growth was mainly fueled by double-digit increases in Central America and Peru, along with the solid performance of the Redmi Note 15 series in the mid-to-high-end market.
Motorola took the third spot with shipments of 4.9 million units, a 5% year-on-year decline, and a 14% market share. Its decline was primarily due to a significant reduction in shipments in the $100–$200 price segment (down 37%), with the G06 and G17 being key models in this range.
Honor ranked fourth with shipments of 3.4 million units, a 30% year-on-year increase, and a market share reaching 10%. This growth was largely driven by the entry-level Play 10 model, which performed strongly in the sub-$100 price segment, approaching sales of 500,000 units for the first time.
Apple ranked fifth with a 31% year-on-year increase. Its growth benefited from outstanding performance in the Mexican market (an 80% year-on-year increase) and strong market reception for the iPhone 17 series.
Miguel Ángel Pérez, Senior Analyst at Omdia, commented: "Although the rising costs of RAM and storage were not yet clearly reflected in the average selling price (ASP) in the first quarter of 2026, price pressures are real and will become more apparent in the second half of the year." He noted: "Advance shipments to some extent supported channel shipments, but as retail prices gradually begin to reflect rising memory costs from the end of the second quarter, demand may weaken—particularly in the entry-level and low-end segments, which account for about 70% of the overall Latin American market. If this is compounded by further increases in component costs, along with potential inflationary effects from macroeconomic uncertainty and global conditions in the fourth quarter, market demand could slow further, extending the downturn into the first half of 2027."
"The market dynamics in the first quarter of 2026 reflect a cautious balance between cost pressures and channel execution. Carriers and retailers made purchases in advance to ensure shelf supply and price stability; meanwhile, OEMs simplified their product portfolios and leaned toward models with lower storage configurations in their SKU structures. High-end demand remained resilient, largely due to continued support from financing and promotional tools such as installment plans, buy-now-pay-later (BNPL) options, and trade-in programs. In contrast, rising memory component costs and supply constraints led to a contraction in the supply and availability of entry-level and low-priced models."
Looking ahead to the second quarter of 2026, as inventory gradually returns to normal levels and rising memory costs slowly begin to pass through to retail prices, market growth is expected to be somewhat restrained, particularly in price segments below $300. Product structures are also likely to further shift toward lower storage configurations.
Entering the second half of 2026, higher component costs and macroeconomic uncertainty may place additional pressure on demand. However, new product launches and promotional cycles during holidays, along with further strengthened installment and financing support from carriers and retailers, are still expected to partially offset these impacts.
Omdia anticipates that regional market performance will continue to diverge: Brazil, Mexico, and Chile are expected to show relatively stronger performance in the mid-to-high-end segments, while more price-sensitive markets will rely more heavily on phased promotions and adopt stricter inventory management strategies.
Following a stronger-than-expected performance in the first quarter of 2026, manufacturers should optimize their product portfolios to maintain profit margins and value clarity across different price tiers. They should also focus shipment efforts on core "hit models" in the mid-range and mid-to-high-end segments to stabilize the balance between scale and profitability. Enhancing conversion rates among price-sensitive consumers through strengthened installment plans, trade-in programs, and member loyalty initiatives is recommended. Additionally, shipments should be finely matched to actual end-user sales (sell-out) and local promotional rhythms to reduce the risk of inventory buildup. Differentiation through perceptible attributes such as battery life, imaging capabilities, screen performance, and durability, supported by a reliable after-sales service system, is also advised. Proactive management of cost and exchange rate risks, combined with scenario-based contingency planning, will be key to navigating market volatility in the second half of 2026 and laying a foundation for a more robust recovery in 2027.
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