Monday , October 18 2021

No sign: Only 8.5 million smartphones will be sold in 2018 and will be the worst in the last 14 years


"The dollar has killed us, settles and consumes us, without mentioning it," said a top executive in the mobile phone market, shaking it from one side to the other. Industry Numbers Reason For: The worst year 2018 will be sales since 2004. Then, when the mass of mobile phones did not arrive (and the weight of the prepaid model and the SMS, for example) sold 7.4 million units. This year, as a result of the decline in the exchange crisis, devaluations and consumption, 8.5 million (8 million would be the majority) would end up with the mobile market. Last year, when they sold 10.8 million, it would be 21%, which could reach 26%.

According to the latest data published by the GfK consulting company, retail sales sales decreased by 14% between January and October, compared to the same period of 2017. "The image is much higher (-43%) compared to October 2018 in October 2018", described.

The historical peak of the sector was in 2011 when 13.7 million mobile phones were sold.

"2018 will be in history as one of the year's foreclosure of the mobile sector: a strong debating of weight, which is a combination of explosion that adds to inflation acceleration," added the analyst. Enrique Carrier, Carrier & Asociados, began years ago with the 2017 figure, although it was a bit higher in the units, until May, when the deviation process accelerated. From now on, the volume of shipments decreased after the new August Dollar jump.

"The general fall in consumption also has an impact. It is in a more general fact: in general, there is no growth and there are no distinctive proposals with regard to new models. There are milestones in different periods. This has also caused, but it is a factor that explains the decline of the economy, "explained Carrier.

For analysts, this context is normal High-cost smartphones are in dollars, "if they are produced directly from abroad (in the case of iPhone) or Tierra del Fuego (most of the country's sold equipment), adding the currency components to local costs due to high inflation and rising interest rates (it causes financial costs)."

The great effect of the dollar is the correlation in prices. Data according to Claright Consultancy, through the study of the Price Intelligence solution (which measures the marking publications and leaflets and supermarket and electrical chains websites) Higher mobile phones prices have risen by 24% – 24,000 million euros from January to October. The average range increased by 21% ($ 8,670) and decreased the impact, increased by 12% ($ 4,169).

"The ups and downs are much more eloquent if we look at the low prices of the previous year, which is, in view of the large increase in the dollar, compared to those specific months, the following jumps can be seen: high range + 30%, low range + 50% and medium and 70% Explain Data in Claros.

Some manufacturers, trouble

According to the data of the transport provider, in terms of sales classification, Samsung continues shipping, with a total of 54%but in the first three quarters of the year it decreased by 16% compared to the same period of 2017. Next, Motorola appears and the second one comes to the participation (23%), unit growth at 102%.. As for the other leaders, LG (8%) has participated in second and third places and Huawei (4%) is in fourth place.

"However, the volume drop is similar to 54% and 52% respectively, a situation that causes changes in the operation of mobile business in these companies," says analysts.

What happened to LG and Huawei, two brands of the local market? Basically, in terms of the market: the dollar. LG is a major restructuring process at the local level and announced an agreement with Newsan, which commercialises and distributes television, audio and video products, air conditioning, kitchens and refrigerators, among other things. They will sell their phones by a company that manages Huawei ex-officers, Tierra de Fuego models wear 100% Brightstar and expect 15% growth share.

"Both brands have had a great deal of difficulty in the deviation contexts and those responsible for local management who had the last word, and they were not Argentines," said the source of the sector.

Counterpoint global advice analysis goes in the same direction. "Huawei has twice the growth, in most of the markets in which it operates. It was the only exception to Argentina, where it reduced its volume as a result of the company's sales and distribution"He said in a report in November." LG is one of the three major brands in Brazil, the largest Latin American market, but it is not enough to have a significant drop in most of the other markets in the region, "they added.

Far but not so bad Apple is an exclusive, which has increased sales by almost 300% and the market share is already the sixth, although the volume of equipment is very small. At the top of the pyramid to conquer the land and persuade the quotas, those who traveled earlier, New Apple announces that its final tanks will arrive, iPhone XS and XS Max, which will sell $ 80,000 and $ 110,000, respectively. At least ten minimum wages.

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