Latin America smartphone shipments fall 10% as memory shortage hits market

Details: Manny Pham; Category: Devices & Platforms; 21 August 2026; 403 views

Smartphone shipments in Latin America fell 10% year-on-year in Q2 2026, marking the region's largest annual decline since Q3 2023, as the ongoing memory shortage pushed up component costs and weighed on demand.

According to Counterpoint Research, the downturn was particularly pronounced in the entry-level and mid-range segments, which account for around three-quarters of smartphone sales in the region. Inventory carried over from Q1 and economic pressures in major markets also contributed to the decline.

Counterpoint principal analyst Tina Lu said rising memory and SoC prices forced manufacturers to increase prices, although appreciation in several Latin American currencies allowed OEMs to absorb some of the higher bill of materials costs.

Samsung was the region's leading smartphone brand, increasing shipments by 6% year-on-year and taking 38% of total shipments. It regained the top position in Colombia, Ecuador and Peru, helped by the availability of its Galaxy A and S series, broad retail presence and discounts.

Apple shipments increased 5%, with the company absorbing higher costs to limit price increases. Demand for the iPhone 17 Pro Max and growing sales of the iPhone 17e supported its performance. Apple retained around 51% of the region's premium smartphone segment, defined as devices costing more than US$600.

Motorola, the region's second-largest brand, saw shipments fall 14%, while Xiaomi suffered a sharper 27% decline as it prioritised supply for its Chinese market. Honor shipments fell 8%. Both Xiaomi and Honor have greater exposure to entry-level and mid-range devices, leaving them more vulnerable to higher memory costs.

Economic conditions also weighed on demand, with inflationary pressures in Colombia, Mexico and Brazil reducing consumer purchasing power. Elections in Colombia and upcoming elections in Brazil contributed to more cautious consumer spending.

Counterpoint expects memory shortages and price pressures to continue through the second half of 2026, with the market's recovery dependent more on memory supply and pricing than underlying consumer demand over the next 18-24 months.