Chile Smartphone Market Research Report: Forecast (2023-2028)

Chile Smartphone Market (2023-28): Market Insights & Projections

The Chile Smartphone Market is projected to grow at a CAGR of around 6.5% during the forecast period, i.e., 2023-28. Unlike most countries of Latin America, which have exhibited a regional trend of YoY declines, Chile improved and emerged as one of the most stable countries in the region. In South America, FDI grew by 74 percent(YoY) in 2021, fueled by the higher demand for commodities and green minerals, cites UNCTAD World Investment Report 2022.

With the substantial increase in FDI inflow over the past two years, the market in Chile may witness rigorous competition resulting in lower prices and better quality smartphones for consumers. In addition, foreign companies’ existing vast consumer base globally and access to advanced technologies may open up new avenues for them in Chile. Further, the strengthening of the Chilean economy, translating to increased disposable income and higher smartphone affordability, pushes the market forward.

The smartphone market in Chile also witnessed a swift surge, stemming from the improved purchasing power of individuals here and the ability of the manufacturers to export more. The United States remained the primary destination for mobile phone exports from Chile, garnering an 83% share of total exports, followed by Peru and Bolivia. Other than this, the growing consumer acceptance of budget smartphone models paired with the intensifying 5G Smartphones adoption is likely to bode well for the industry growth.

Chile Smartphone Market Drivers:

Strengthening of The Chilean Economy Leading to Increased Disposable Income and Higher Affordability for Smart Phones - The market for smartphones is primed for substantial growth on account of an increase in disposable income, resulting in the higher affordability of smartphones. This can be attributed to the steady growth of the Chilean economy over the past few years, for example, a GDP growth of 3.2% in 2022, which has influenced the sales of smartphones as an essential product. According to The Ministry of Economy's quarterly report on the Chilean economy for Q1 2023, smartphone shipments in Chile increased by 71% YoY, and the average selling price for the same increased by 11% YoY.

Chile Smartphone Market Opportunities:

Growing Adoption of 5G Smartphones, With Most Cell Phones Sold to Support 5G by 2023 - There has been constant encouragement and investment by the government in improving and solidifying infrastructure, such as 5G networks across the country, making it highly convenient for users to use smartphones and seamlessly switch between applications.

• In April 2023, The Chilean government vested Claro Chile provisional authorization to employ part of its spectrum in the 3.5 GHz band for offering commercial 5G services.

The advancements in generations of telecommunications networks have led to an increasing urge for fast internet connections, which again compelled manufacturers to launch more 5 G-enabled smartphones. As per the Subsecretariat of Telecommunications of Chile (SUBTEL), Chile's 5G smartphone market grew by 150% YoY, with 1.2 million 5G smartphones in use in 2022.

• In May 2023, Movistar Chile surpassed one million subscribers on its 5G network within four months. The company seeks to expand its network to over 1,500 sites in the second phase of its 5G deployment.

Chile Smartphone Market Trends:

Increased Consumer Acceptance of Budget Smartphones Models - A notable inclination for budget smartphones has been observed in recent years. One fine example would be the ascension of Chinese electronics giant Xiaomi as Chile’s third-largest smartphone vendor from anonymity in 2021, outpacing Huawei, which saw an abrupt shrink in sales due to the U.S. sanctions. Its budget Redmi models did extraordinarily well in the market, making smartphones its most significant revenue source.

Moreover, with Oppo, Vivo, Realme, and other Chinese brands planning expansion in South American countries, consumers are likely to benefit from the more innovative models with competitive prices. On the other hand, Apple, despite being expensive for the region’s average consumer, is considered a desirable brand, with Samsung still leading the market with majority stakes.

Chile Smartphone Market (2023-28): Segmentation Analysis

Chile Smartphone Market report by Markntel Advisors includes segmentation analysis based on Operating System, Distribution Channel, Screen Size, RAM Size, and Price Range. This breakdown allows businesses to identify specific market segments and tailor their marketing and product strategies accordingly, maximizing their chances of success in the Chile Smartphone Market.

Based on Operating System

• Android    
• IOS   
• Others   

Between the two, Android smartphones acquired the highest market share in the historical period as these are readily available and relatively affordable than IoS devices. Although Apple devices are still considered the status symbol, the ability of Android to offer numerous applications and outstanding features at a lower cost has made it a popular choice among lower and middle-class consumers. Other than this, many app developers prefer Android OS to develop social media, gaming/entertainment, mobile utility, and lifestyle applications.

Moreover, the market for Android smartphones in Chile is largely backed by its government, which has implemented several policies making such devices more accessible and affordable for Chileans. For example, the government has subsidized the purchase of Android devices for low-income families.

Based on Screen Size,

• Below 5 Inches    
• 5 to 6 Inches   
• Above 6 Inches   

The smartphones below 5 inches’ category have gained popularity among users who value portability and one-handed operation. These compact devices offer convenience and easy pocket ability. Likewise, the 5 to 6 inches’ category balances size and display. It caters to a wide range of users who seek a comfortable grip and immersive viewing experience for browsing, multimedia, and gaming. On the other hand, the market for smartphones above 6 inches has gained popularity in recent years. These larger screens appeal to multimedia enthusiasts, gamers, and productivity-focused users. They provide an immersive and visually stunning experience, enabling multitasking and enhanced visual clarity.

Chile Smartphone Industry Competitive Landscape

• In May 2023, Samsung Electronics Co. announced its plans to reveal the fifth-generation of its foldable smartphones by July 2023.
• In October 2022, Motorola revealed the launch of its new smartphones from the Edge range, named Edge 30 Fusion and Edge 30 Neo, in Chile.

Gain a Competitive Edge with Markntel Advisors’ Chile Smartphone Market Report

1. Chile Smartphone Market report provides a detailed and thorough analysis of market size, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics and make informed decisions.
2. This report also highlights current market trends and future projections, allowing businesses to identify emerging opportunities and potential challenges. By understanding market forecasts, companies can align their strategies and stay ahead of the competition.
3. Chile Smartphone Market report aids in assessing and mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks and optimize their operations.