Latin America’s smartphone market has hit the brakes in Q1 2025, ending a six-quarter growth run with a 4% year-over-year drop in shipments. A total of 33.7 million smartphones were shipped across the region, down from 34.9 million during the same period last year.
Brazil remains the largest market, accounting for 38% of the total LATAM shipments and even showing modest growth of 3% – a sign of local resilience amid global uncertainty. 
However, Mexico, the second-largest market with 22% of shipments, saw a dramatic 18% slump, likely due to intense competition and the aftershock of an aggressive device refresh cycle in 2024.
Central America, Colombia, and Peru also witnessed declines of 7%, 5%, and 6% respectively, revealing that the downturn is region-wide rather than market-specific.
Brand-wise, Samsung maintains its dominance in the region, registering 7% growth largely thanks to its budget-friendly Galaxy A series. Xiaomi isn’t far behind, surging by 10% year-over-year, primarily riding the wave of its Redmi line’s popularity.
Motorola dropped to third place with a 13% decline in shipments, signaling growing pressure in the mid-tier segment. Meanwhile, Honor climbed to fourth with a modest 2% gain – a sign of quiet but steady progress. Transsion took the biggest hit, plummeting 38% due to a late product launch and dull lineup outside the Note 50 series, combined with internal distribution shakeups.
One overlooked player is Vivo, which recently entered the Brazilian market under the name Jovi to avoid conflicts with a local telecom brand. However, the pricing of its V50 models has raised eyebrows – the V50 is listed at around R$5000 (~$895), and the V50 Lite at R$3200 (~$572), despite being assembled in a duty-free zone. Many consumers find these prices disconnected from local income levels, which may hinder adoption.
Affordability is becoming the defining issue in LATAM. Even budget phones are becoming expensive due to currency volatility, high taxes, and regional logistics. As a result, many consumers are skipping upgrades or opting for refurbished flagships instead of buying low-end new models – a growing trend especially in urban areas.
Apple, while still considered premium, struggles with volume in LATAM due to its pricing structure. Its market share may appear small in numbers (~10%), but its financial impact is significant, with individual devices costing up to 2.5x more compared to the U.S. This makes iPhones a luxury item, often seen as a status symbol.
Looking forward, Canalys predicts a further 1% market contraction in LATAM for the rest of 2025. Economic uncertainty, fears of import tariffs, and the looming shadow of U.S.-China tensions continue to shape the market mood. Vendors are playing it safe by limiting inventory and shelving aggressive promotions. Consumers, in turn, are holding onto their phones longer, making upgrade cycles slower than ever before.