Is Latin America’s Smartphone Market Finding Its Footing?

Buying a new phone in Latin America has often been less about chasing the latest features and more about stretching every peso or real as far as it can go. For some time, economic uncertainty kept many people holding onto older devices far longer than they wanted. But something shifted this past quarter.

In Q2 2025, smartphone sales across the region ticked upward, a modest 2% rise year-on-year to 34.3 million units, per Canalys. While it may seem like an insignificant increase, it signals a slow return of consumer confidence and a stronger appetite for affordable upgrades.

The Recovery Effect

Central America, Colombia, and Argentina were the beating heart of the comeback. These markets grew at strong double-digit rates, making up for sluggish demand in Brazil and Mexico. Colombia and Argentina, in particular, bounced back after almost two years of turbulence, economic slowdowns, political shifts, and rising costs had pushed consumers to delay upgrading their phones. With some of that pressure easing, people are finally spending again, though they are sticking mostly to entry-level and mid-range models.

HONOR’s success is a perfect example of this shift. Its X-series and Magic7 Lite became go-to choices in Central America, which is now the company’s biggest base in the region, overtaking Mexico. The appeal is simple. It’s about solid specs, fair pricing, and the trust that comes with building a strong presence in places where people are just starting to buy into new tech again.

The Power of Affordable Phones

Samsung and Xiaomi also leaned into this demand and came out ahead. Samsung shipped 11 million devices, growing 8% year-over-year. More than 60% of that came from just two models, the Galaxy A06 and A16, proving again that value for money is what moves the needle here. For many families, those phones are more than just options; they are safe bets.

Xiaomi broke its record with 6.7 million units, helped by 4G versions of the Redmi A5 and 14C. In Argentina, Colombia, and Central America, these models gave buyers modern features at affordable prices. HONOR, meanwhile, had its best quarter ever in the region, up a remarkable 70%.

But not all the brands kept pace. Motorola saw shipments fall 10% to 5.1 million units, and TRANSSION dropped 23% to 2.4 million. The market has little patience for brands that slip, especially when competition is this fierce.

Looking Ahead

The modest 2% growth in Q2 tells us that Latin America’s smartphone market is finding its rhythm again, not with flashy flagships but with devices that are affordable, practical, and built for everyday use. While Samsung, Xiaomi, and HONOR are riding the wave of demand for budget-friendly powerhouses, Motorola and TRANSSION look like they’re struggling to keep pace.

This appetite for entry-level phones was what lifted the whole market in Q2. But it comes with risks. Analysts warn that vendors cannot rely forever on the low end. Economic conditions in Latin America are still fragile, and a shock, such as US tariffs or renewed inflation, could quickly undermine this demand. A longer-term success will depend on whether companies can build bridges into mid- and high-end segments while expanding into connected ecosystems.