The Latin American smartphone market posted stronger-than-expected growth in the first quarter of 2026, driven by aggressive channel inventory buildup, resilient premium smartphone demand, and delayed retail price increases despite rising memory component costs, according to new data from Omdia.
Omdia said smartphone shipments in Latin America increased 3 percent year-over-year to 34.8 million units in Q1 2026, extending momentum after record shipment levels in Q4 2025 and the full-year 2025 period. The market expansion was supported by proactive inventory accumulation by retailers and operators, simplified product portfolios by smartphone brands, and stronger shipment focus on lower-storage device variants to offset higher DRAM and NAND pricing pressures.
Premium smartphones priced above $500 remained comparatively resilient across the region, while affordability constraints increasingly affected value and entry-level smartphone categories, Omdia report said.
Samsung Expands Leadership in Latin America Smartphone Market
Samsung Electronics retained its leadership position in the Latin America smartphone market with shipments rising 9 percent year-over-year to 12.9 million units during Q1 2026. Samsung captured a 37 percent market share, marking its highest quarterly level since Q1 2023.
Samsung’s growth was largely driven by strong demand for its Galaxy A-series smartphones across both low-end and mid-to-high-tier segments. The company continued benefiting from broad retail presence and diversified channel partnerships throughout Latin America.
Xiaomi secured the second position with shipments reaching 6 million units and a 17 percent market share. Xiaomi recorded its sixth consecutive quarter of shipment growth, supported by double-digit gains in Central America and Peru, as well as strong consumer demand for the Redmi Note 15 series in the mid-high smartphone category.
Motorola ranked third despite a 5 percent annual decline in shipments to 4.9 million units, translating into a 14 percent market share. Omdia noted that Motorola was impacted by a sharp 37 percent decline in the $100-$200 smartphone segment, where models such as the G06 and G17 traditionally contribute significant shipment volumes.
HONOR maintained fourth place with a strong 30 percent year-over-year increase in shipments to 3.4 million units, capturing a 10 percent market share. HONOR’s growth was driven primarily by the Play 10 smartphone in the sub-$100 entry segment, with sales approaching half a million units for the first time.
Apple completed the top five smartphone vendors in Latin America after posting a 31 percent annual increase in shipments. Apple’s growth was boosted by exceptionally strong performance in Mexico, where shipments surged 80 percent year-over-year, alongside robust regional demand for the iPhone 17 series.
Rising Memory Costs to Pressure Smartphone Demand in H2 2026
Miguel Ángel Pérez, Senior Analyst at Omdia, said increasing RAM and storage component costs had not yet significantly impacted smartphone average selling prices during Q1 2026, but warned that pricing pressure would become more visible in the second half of the year.
According to Omdia, front-loaded smartphone deliveries helped maintain healthy retail sell-through levels during the quarter. However, retail prices are expected to rise gradually from late Q2 2026 onward as higher memory costs are passed on to consumers.
The research firm warned that entry-level and low-end smartphone segments, which account for roughly 70 percent of the Latin American smartphone market, are likely to face the strongest demand slowdown once higher prices begin affecting affordability.
Omdia also highlighted broader risks including inflationary pressures, macroeconomic uncertainty, and global geopolitical tensions that could extend smartphone demand contraction into the first half of 2027.
Financing Programs Continue Supporting Premium Smartphone Sales
Omdia noted that operators and retailers across Latin America advanced smartphone purchases during Q1 2026 to maintain shelf availability and preserve price stability amid rising component costs.
Smartphone brands also optimized product portfolios by prioritizing leaner storage variants and reducing model complexity. While shortages and rising memory prices constrained affordable smartphone availability, premium smartphone demand remained relatively stable due to financing programs including installment plans, buy-now-pay-later schemes, and trade-in offers.
The research company expects inventory normalization and progressive retail price increases during Q2 2026 to moderate shipment growth, especially for smartphones priced below $300. Omdia added that vendors will increasingly shift their portfolios toward lower-storage configurations to maintain affordability.
Brazil, Mexico and Chile Expected to Remain More Resilient
For the second half of 2026, Omdia expects elevated component costs and uncertain macroeconomic conditions to continue weighing on smartphone demand across Latin America. However, holiday season launches, promotional campaigns, and stronger financing support from retailers and telecom operators may partially offset the pressure.
The report said Brazil, Mexico, and Chile are expected to remain relatively stronger markets for mid-range and premium smartphones, while more price-sensitive countries are likely to focus on tactical promotions and tighter inventory management strategies.
Omdia advised smartphone vendors operating in Latin America to focus on margin preservation, simplify product portfolios, strengthen financing and loyalty programs, align shipments more closely with real consumer demand, and differentiate products through battery performance, camera quality, durability, and after-sales service capabilities.
SHAFANA FAZAL
