Latin America Smartphone Sector Trends Discussed by Pyramid Research in Topical Report Published at MarketPublishers.com20 May 2015 • by Natalie Aster
LONDON – Levying hefty taxes on imported handsets is a viable option to stimulate the growth of the Latin American smartphone industry. Nevertheless, the lack of a fully-fledged production value chain can translate into domestically-manufactured smartphones that are higher-priced than similar imported handsets in a scenario with lower import duties, mainly to the disadvantage of low-income consumers.
The adoption of smartphones, specifically LTE- capable devices, is likely to positively impact ARPS levels. In Latin America, the higher cost of LTE-enabled smartphones remains a key driver of mass LTE adoption. The deployment of LTE networks is in high gear in the majority of leading markets across the region, but service adoption remains low.
To support the rollout of novel technologies, carriers should be able to procure a sufficient number of smartphones in an expedited manner. In Venezuela, for example, the introduction of LTE services has been curbed, primarily due to the unavailability of LTE-enabled smartphones.
Regulators in the region are increasingly turning to banning the sales of carrier-locked handsets and urging mobile operators to unlock the previously sold ones, with an eye to instigating competition at the service layer. Imposing a ban on the sales of SIM-locked handsets as such doesn't change the market structure, but it helps to level the playing field in the mobile sector. In Peru, the removal of the lock on phones, alongside improvements in the mobile number portability (MNP) process, has helped smaller mobile carriers Entel and Bitel to steal subscribers away from such leading operators as Claro and Movistar.
Topical report “Smartphone Trends in Latin America: The Impact of Government Policies and Regulatory Intervention” created by Pyramid Research provides an in-depth analysis of the handset and smartphone markets globally and in Latin America. The research study discusses the measures initiated by regulators and governments that directly influence the mobile handset sales, in particular smartphones, including the implementation of import mechanisms and tax policies favouring locally produced handsets and banning the sale of carrier locked ones. The report evaluates the impact of these measures on various industry players with a focus on Latin America’s leading markets like Brazil, Argentina, Chile, Ecuador, Mexico, Colombia, Venezuela and Peru. The report presents 6 case studies, bringing forward evidence from some of the major handset related regulations in the region. Additionally, an outline of key research findings and a range of recommendations for industry players can be found in the study.
Smartphone Trends in Latin America: The Impact of Government Policies and Regulatory Intervention
Published: April, 2015
Price: US$ 1,195.00
More studies by the publisher can be found at Pyramid Research page.