"The dollar killed us, stopped us, and consumption, not to mention it," says the leader of the local smartphone market when he shakes his head from the other side. Industry numbers give him the reason: The year 2018 is the worst year since 2004. Then, when it had not even reached the full mass of mobile phones (and only took prepaid billboards and text messages), sold 7.4 million copies. This year, the currency crisis, devaluations and decline in consumption will end in the mobile market, reaching 8.5 million teams (8 million most pessimistic). The drop compared to last year, when 10.8 million were sold, would be 21 percent, which could rise to 26 percent.
According to the latest data published by GfK, retail sales declined by 14 percent in January-October compared to the same period of 2017. "The figure is much higher (-43%) in October 2018, October 2017," describe.
The historic peak in the industry was in 2011 when 13.7 million mobile phones were sold.
"2018 remains a year of insight into the mobile IT sector: a massive devaluation of the weight, which increased its acceleration in inflation, became an explosive combination," the analyst adds. Enrique CarrierCarrier & Asociados, which states that the year had begun with figures that were similar to those in 2017, albeit somewhat larger in units, a situation that took place in May when the acceleration of the devaluation process began. Since then, the number of shipments fell, a trend that became apparent after the new jumping season in August.
"The overall decline in consumption also affects. The more general factor is that there is not much growth worldwide, and there are no differentiated proposals for new models. The absence of these intermediate goals from other ages. This also affects, but the economy is the main factor explaining the bill, "describes Carrier.
Analyst, this context is normal because Smartphones have a large cost share in dollars, "whether it is a good income directly from abroad (an iPhone case) or if it is produced in Tierra del Fuego (most countries sold), where currency components are added to local costs due to high inflation and rising interest rates (which affect financial costs)."
The high level of the dollar is an obvious correlation in prices. According to DatosClaros consultants, through an analysis of price information (which measures branded brochures and brochures and on the electricity chain) high-end mobile phone prices rose 24% – in January-October – an average of 24,000 pesos units. The average range increased by 21% ($ 8,670), with the decrease, least influenced, increased by 12% ($ 4,169).
"The rise is much more obvious if we analyze the prices of October last year and this, where the high rise in the dollar is clearly visible and compared with those months, shows the following jumps: height + 30%, low area + 50% and middle area plus 70%", explains DatosClaros .
Some manufacturers, in trouble
According to Carrier's information, when looking at sales statistics by brand, Samsung will continue to transport, accounting for 54 percent of the total, but decreased by 16% during the first three quarters of the year compared to the same period of 2017. It then looks like Motorola, which reaches the second part of the participation (23%), where unit growth is 102%. Among the other leaders, LG (8%) went from third to third and Huawei (4%) remained fourth.
"However, the drop in volume is similar to both, 54% and 52% respectively, which is the case that will cause changes in the mobile company's operations to these companies," the analyst says.
What happened to LG and Huawei, two main points in the local market? Basically, the same as in the market: the dollar. LG is undergoing a major reshuffle at local level and has just announced an agreement with Newsan that markets and distributes television, audio and video products, air conditioners, kitchens and refrigerators. Their phone sells a company that handles two of the older Huawei, manufactures 100% of their models at Tierra de Fuego Brightstar and are expecting to reach 15 percent share.
"Two brands were hard to manage in devaluation and the local leader who had the last word and were not Argentine," says the source of the industry.
The Global Counterpoint counterpoint analysis goes in the same direction. "Huawei is a double-digit growth in most markets in its area where it operates. The only exception was Argentina, where it was reduced because the company decided to outsource sales and distribution"says in November in his report." LG is among the three largest brands in Brazil, the largest market in Latin America, but it is not enough to replace the sharp decline in most other markets in the region, "they added.
The one that is far, but not so bad, is the exclusive Apple that has increased its sales by nearly 300 percent and is already the sixth market share, albeit with a very small sales volume. In an effort to get to the top of the pyramid and assure the quota of those who had traveled the most, Apple has just announced its latest containers, the iPhone XS and XS Max, which sell for $ 80,000 and $ 110,000, respectively. Almost ten minimum wages.