According to the latest data from Omdia, the Latin American smartphone market experienced a 12% year-on-year contraction in the second quarter of 2026, with shipments dropping to 30.3 million units. The rising costs of DRAM and NAND have gradually been passed through to retail prices, with the most pronounced impact felt on demand for entry-level devices.
Manufacturers and channel partners had partially offset the impact of rising costs in the first quarter through advance stockpiling and inventory buffers. However, as these buffers weakened entering the second quarter, low-end market demand came under greater pressure, while the mid-range, high-end, and premium flagship segments demonstrated comparatively stronger resilience.
In the second quarter of 2026, Samsung Electronics remained the largest smartphone manufacturer in Latin America, shipping 12 million units—a 9% year-on-year increase—and boosting its market share to 39%, its highest level since the first quarter of 2022. This growth was driven primarily by the entry-level Galaxy A07 and A17 models, alongside the mid-range A37 and A57. Moreover, Samsung was relatively less affected by memory component shortages, and its strong partnerships with channel partners further supported this growth.
Xiaomi Corp. ranked second with 4.9 million units shipped and a 16% market share. Its premium segment reached a record 14% of its overall sales mix.
Motorola Solutions secured third place with 4.4 million units shipped and a 14% market share, though its shipments declined 15% year-on-year. Its premium product portfolio grew by 46%, driven primarily by the Edge 70 and Razr 70 series, but growth in these price segments was insufficient to offset declines elsewhere in its portfolio.
Honor ranked fourth with 2 million units shipped and a 6.5% market share, marking a 32% year-on-year decline. This represents the first contraction for the manufacturer since it officially entered the Latin American market in the fourth quarter of 2021. Declines across most price segments outweighed growth from entry-level models such as the Play 10 and X5c, as well as increased contributions from premium devices. Premium smartphones accounted for 12% of Honor's shipment mix, primarily driven by the Magic 8 and HONOR 600 series.
Tecno returned to fifth place with 2 million units shipped and a 6.4% market share, despite an 19% year-on-year decline in shipments. The manufacturer continued to reduce its reliance on entry-level devices and expand its presence in the $200–$500 price band, which now accounts for 32% of its total shipments. Growth in this price segment was mainly led by the Infinix Hot 70, Note 60, and Edge series.
Omdia Senior Analyst Miguel Ángel Pérez commented: "The current market environment is testing manufacturers' adaptability, including managing supply chain risks, reducing dependence on the low-end market, optimizing product portfolios, and strengthening channel relationships."
Market Accelerates Shift Toward Higher Price Segments
In the second quarter of 2026, structural changes in the Latin American smartphone market became particularly evident across price segments. Smartphone shipments priced below $100 fell 72% year-on-year, with this segment's contribution to both market volume and revenue declining substantially.
The $100–$300 price band saw shipments decline 6% year-on-year but remained the region's largest volume segment, accounting for 61% of total shipments. Meanwhile, smartphones priced above $500 increased their market share to 18% of total shipments, yet contributed 51% of the region's smartphone sales revenue.
The further proliferation of financing options is driving the market toward higher-value devices. Manufacturers are increasingly focusing on enhancing the value proposition of mid-range products while improving consumer accessibility to premium devices through discounts, bundle deals, interest-free installment plans, trade-in programs, and leasing options.
In the second quarter of 2026, Central America was among the regions in Latin America experiencing the most significant market declines. After several years of steady growth, this sub-region became Latin America's third-largest smartphone market in 2024. Due to its heavy reliance on low-priced devices, Central America has been particularly vulnerable to recent market pressures. In 2025, smartphones priced below $300 accounted for 84% of the region's shipments. With demand for low-priced devices weakening sharply, the region's smartphone market contracted 22% year-on-year in the second quarter of 2026.
Outlook for the Remainder of 2026
Omdia currently projects that the Latin American smartphone market will decline 16% year-on-year in 2026, with the pace of decline expected to accelerate in the second half of the year. Entry-level devices will continue to face pressure from rising prices and limited specifications, while competition in the mid-range and upper-mid-range segments is expected to intensify further.
The impact of price increases was already visible in the second quarter of 2026, with the region's average selling price (ASP) rising 25% year-on-year. Given that bill of materials (BOM) configurations and product SKUs for the remainder of the year are largely already determined, memory cost volatility is unlikely to reverse the anticipated downward trend in the second half. Consequently, consumer reactions to rising smartphone prices and the resulting ASP increase will be a key factor influencing market performance.
As sales channels tighten inventory management and consumers become more cautious about purchasing new devices, manufacturers' market performance will increasingly depend on strict shipment control, targeted promotions, and operational efficiency at the point of sale. At the same time, maintaining clear product messaging and effective execution across retail and carrier channels, supplemented by digital marketing strategies, will be essential for converting consumer demand into actual sales.