Latin America’s smartphone market hits the brakes in Q1 2025 after six quarters of growth

For the past year and a half, Latin America had been one of the few bright spots in the global smartphone landscape, a region where momentum seemed to defy the odds. New brands surged in, buyers upgraded in waves, and growth became almost expected. But in the first quarter of 2025, that streak came to a halt.

According to Canalys, smartphone shipments in the region fell 4% year on year, totaling 33.7 million units and marking the end of six consecutive quarters of growth. While not a dramatic collapse, the decline signals a shift: the market is cooling, and competition is tightening.

Still, some brands managed to grow despite the downturn. Samsung maintained its lead, growing 7% on the strength of its entry-level A06 and A16 devices, which together made up nearly half of its shipments. Xiaomi held second place with 10% growth, thanks to continued demand for the Redmi 14C 4G and Note 14 series.

Meanwhile, Motorola slipped to third after a 13% drop, weighed down by a reliance on aging budget models. HONOR hit a new milestone, reaching its highest-ever market share, while TRANSSION suffered its first major setback in the region with a steep 38% decline.

This transition in vendor performance is mirrored by shifts in consumer behavior. Growth is now concentrated at the extremes, low-cost models and premium flagships, while the mid-range, which still accounts for the bulk of shipments, becomes the core battleground. Price sensitivity is rising, upgrade cycles are lengthening, and brands are being forced to rethink strategies that once worked without question.

Country-level dynamics add more nuance. Brazil, the region’s largest market, was the only country that managed 3% growth in Q1, buoyed by strong investments from Chinese brands and continued leadership from Samsung. In Mexico, shipments dropped 18% after an aggressive upgrade cycle in 2024 led to excess inventory. Central America, which had been riding high, also recorded its first decline in nearly two years. Colombia and Peru showed mixed results, with Xiaomi emerging as the top brand in both despite sluggish overall demand, while Samsung remained close behind.

Looking forward, Canalys now forecasts a 1% decline for the full year—a modest figure that masks deeper volatility. With the region heavily exposed to global economic pressure, particularly from US-China trade tensions, plus inflationary pressure, and currency fluctuations, vendors must brace for further fluctuations in consumer spending.

As Miguel Pérez, Senior Analyst at Canalys, put it: “This isn’t just a pause—it’s a turning point. Brands that thrive in 2025 will be the ones that adapt quickly, operate lean, and find smart ways to connect with buyers who are thinking twice before spending.”

The easy growth is over. Now, it’s about staying sharp, staying relevant, and earning every sale.