Mobile phone sales in Brazil fell in the current quarter of 2020 due to the new coronavirus crisis in what is one of the worst scenarios ever recorded for the segment, according to a new study.
According to the quarterly study on the mobile phone market in Brazil conducted through the IDC analyst, sales fell by 30. 7% between April and June at the same time in 2019, with 9,631,424 devices sold.
This is due to difficulties related to the lack of imported factors to unite parts and logistics to deliver them, as well as the closure of stores on the street as a component of the reaction to local authority regulations to curb Covid-19 and general lack of public interest in the purchase of a new device due to other disruptions such as unemployment.
“The situation was favorable at the beginning of the year, however the pandemic affected virtually all commercial sectors and this was not another with the cell phone market, which suffered from China’s lack of spare parts and rising costs from exchange rate fluctuations,” he added. said Renato Meireles, a study analyst and representative in IDC Brazil’s customer gadget department.
According to Meireles, online sales channels mitigated the effect on the sector at the start of the coronavirus crisis, however, although e-commerce sales grew more than expected, the analyst said, that was not enough to compensate for the decline. at the fourth moment.
Of the total terminals sold in April, May and June, 8,745,054 were sold through official channels such as shops and street operators, of which smartphones accounted for 8,353,195, while 391,858 MFPs, 31. 1% and 54% less were sold, respectively, the 2019. Se quarter-time sold some 790,431 smartphones in the grey market, 8. 3% more than at the time of the quarter of 2019 and 95939 multifunctional phones , a year-on-year decrease of 51. 1%.
As for multipurpose phones, although a drop in sales was already expected, the category remains attractive in Brazil, but with a much less applicable share, about 5% of the market. “In more remote spaces or for consumers who are not experts or who want smartphone technology, the cost-benefit ratio of a multifunctional phone is attractive,” Meireles said.
According to IDC, the best-selling category at the time quarter of 2020 on all high-end smartphone channels, with 3363076 games worth 1100 to 1999 BRL ($206 to $375). sold with entry-level values between BRL 700 and 1099 ($131-206).
Higher prices in all spaces in terms of smartphone sales in Brazil: the average value of a smartphone 1539 BRL (289 USD) in the official market and 1727 BRL (324 USD) in the grey market, an increase of 22. 9% and 36. 2%, respectively, compared to the last quarter of 2019. The average multifunction phone bill is also 39. 5% higher in the official market and 24. 6% in the grey market.
Total cell market profit at the time of the 2020 BRL quarter 14. 8 billion (US$2. 7 billion), 8. 5% less than at the same time in 2019 Smartphones accounted for BRL 14. 3 billion (US$2. 6 billion), while MFPs accounted for BRL 82. 6 billion. (US$15. 5 billion) of this total.
Figures for the 2020 quarter adhere to an earlier report published through IDC in March, in which he predicted that the smartphone segment might see an interruption in the expansion trajectory it had enjoyed in recent years.
In March, the analyst company forecast a 2% expansion in smartphone sales in Brazil until 2020. In its most recent update, the company provided a revised outlook with an exact figure in terms of expected expansion for the year, however, it said sales will see a slow improvement in the 3rd quarter.
“The current [consumer] still focuses on fitness and [attitude] is cautious outdoors at home, however, reopening physical outlets is very vital for the resumption of smartphone sales and the trend is expected to decrease,” Meireles said.
The analyst added that the functionality of the sector for the year will be in line with macroeconomic signs indicating innovations in GDP and that emergency government assistance to financially vulnerable citizens will also be useful for the sale of devices.
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