Report: Smartphone Shipments Fell by 19% Last Year in Colombia

Smartphone shipments in Colombia declined by a shocking 19% in 2023, marking the worst year for the sector in the Andean nation since the pandemic hit in 2020, according to an analysis from market research firm Counterpoint. The fourth quarter figure followed this trend, showing a 18.4 year-over-year drop compared to the final quarter of 2022.

Even market leader Samsung felt the hit, shipping less than half of the volume last year that it moved in 2023. In the fourth quarter, the Korean giant held a 21% market share, per Counterpoint.

Several companies did have good years in Colombia, however.

According to the firm’s report, Apple — a relatively small player in Colombia — gained 200 basis points in Q4 of 2023 compared with the same period in 2022. Motorola jumped by 100 basis points in the quarter, while Several Chinese OEMs — including established local player Xiaomi, Guangdong-bassed giant Oppo, and Huawei offshoot Honor — are also picking up market share in Colombia.

Tina Lu, senior research analyst at Counterpoint., wrote in an analysis that economic factors played a large role in the decline last year.

“Colombia was hit hard by macroeconomic turbulence and its economy grew half of what was expected, with the GDP only 0.6% higher in 2023,” wrote Lu. “On a positive note, inflation closed the year in single digits. However, there are potential upside risks for 2024, like El Nino and the rise in fuel prices.”

These current downturn and difficult market dynamics, however, have not fully disrupted demand.

“Despite the economic struggle,” she added, “demand is slightly resilient as some OEMs continue to increase promotions. Also, the 5G spectrum auction that occurred in December can become a driver for the market as customers want to experience the new technology. Colombia’s 5G penetration currently stands at 11%.”

Counterpoint analyst Andres Silva commented on the performance of several of the largest players, including Samsung, which he says felt a larger hit than anyone else in the low-end segment of the market.

“Consequently, its promotional activities were focused on other devices, like the Galaxy A34 and Galaxy A24, both from the price band just above the low-end segment,” he stated. “Xiaomi doubled its market share to 20% in Q4 driven by a strategy under which its most promoted device in the open market was the Redmi Note 12, while in carriers it was the Redmi 10C.”

Honor, meanwhile, saw a huge 225% spike, year-over-year, largely by focusing on marketing its smartphones through the “sponsorship of events where the attendees are younger and more tech-savvy,” he added. Overall, Honor’s 7% market share placed it fourth among brands in the fourth quarter..