Smartphone sales fall 13% in 2nd Qtr

Smartphone sales fell 13 percent in Brazil in the second quarter compared with the same period last year, to 11.3 million sets, as IDC Brazil consultancy reported.
"The problems in the economy, inflation above 9%, rising unemployment rate and the consumer confidence index, which is at a level worse than during the crisis of 2009, are the factors responsible for poor performance," said Leonardo Munin, research analyst of IDC Brazil.
Despite the strong low volumes, there were only 7 percent drop in revenue. "This shows that the Brazilian consumer is no longer as sensitive to prices and buying more expensive products as well," said the analyst.
Stock
According to IDC Brazil, stock in the whole production chain, whether inputs or ready, "has never been as great as in the second quarter of this year". According to Munin, the high of the dollar forced the market to advance purchases to escape the transfer prices. "Now, for the market turn, manufacturers, and retail channel had to use aggressive price strategies to market the products," said Munin.
The expectation of the consultancy is the setting for the remainder of the year still remains the same. The IDC forecast Brazil is that 50 million smartphones will be sold by the end of 2015, down 8% compared to 2014.