Colombia’s annual per capita purchasing power is currently below the regional average, with the country’s minimum wage around COP908 (USD260) per month (as from 1 January 2021). It is therefore evident that consumers in Colombia are typically seeking more affordable options over premium devices.
On the other hand, Huawei Technologies Colombia SAS, an important player in smartphones in Colombia, is seeing a notable drop in shares in 2021, following a less steep drop seen in 2020. In addition to the vetoes that the Trump presidency imposed on the Chinese company, the lack of Google services and applications on Huawei’s models have ultimately meant that the player has been gradually falling from grace.
The microchip crisis, which has been mentioned in other categories in relation to impacts from COVID-19 slowing down production of a number of essential components needed for the manufacture of consumer electronics, is also affecting smartphones. Within this, it is noted that Apple Inc (with its iPhone) has fared better, due to the company’s overall financial power and lesser dependence on struggling component manufacturers.
A channel switch was noted during 2020, from specialist mobile phone stores to modern retailers who sell mobile phones. During the periods of lockdown, retailers such as supermarkets and hypermarkets were deemed to be essential stores and thus were allowed to remain open, often tempting consumers with promotional and sales days, such as non-VAT days.
Despite the current trend seen for cheaper models, typically the most sought-after smartphones are those in the medium range which offer a good price-to-quality ratio. However, the maturity of the category means that consumers in the medium-price range are increasingly seeking added value characteristics.
Overall, volume sales in smartphones will continue to decrease over the forecast period. Demand for smartphones in the US was already declining prior to the emergence of COVID-19 in 2020, due to a high penetration in local households and increasing unit prices.
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Understand the latest market trends and future growth opportunities for the Mobile Phones industry in Colombia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Mobile Phones industry in Colombia, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
This report originates from Passport, our Mobile Phones research and analysis database.
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