Article by Aonghus McMahon, Head of Product at Sim Local
Whereas the Apple model has been liable for numerous cult tech classics, its dominance in regional markets is commonly decrease than may be anticipated given the recognition and infamy of its merchandise.
In relation to the smartphone market, for instance, Latin America has lengthy regarded to Android rivals for its units. In truth, Samsung has held the title of biggest smartphone brand within the area for a decade now.
But the final yr particularly has begun to indicate indicators that Samsung’s reigning period in LATAM might face some powerful competitors.
One signal of Apple’s rising recognition throughout LATAM will be discovered within the improve in flagship shops in recent times. For a lot of, heading to an Apple retailer to take a look at the newest releases or get skilled recommendation on devices and upgrades is a serious a part of the expertise that additionally acts as a serious contributor to model loyalty. Nonetheless, regardless of the area’s proximity to the US, the variety of official Apple shops and even licensed third-party resellers has remained restricted.
Since 2019, the tides have been altering right here, with high-end Apple shops popping up in a few of the most unique neighborhoods of cities together with Mexico City and Sao Paulo, and a unique online offering for the residents of Chile.
As well as, after a tough couple of years, the recognition of Apple’s iPhone is lastly again on the up with clients worldwide. Apple re-entered the Top 5 smartphone companies at second place with the launch of its new iPhone 16 sequence.
Contemporary demand for iPhone handsets and the newest gross sales figures from Samsung recommend that the latter’s maintain on the area could possibly be weakening as we stay up for 2025.
Let’s take a better have a look at the figures that give us extra perception.
Altering winds seen in smartphone shipments
Probably the most fast and distinguished locations that recommend Apple is about to develop its share of Latin America’s smartphone markets will be present in shipping figures for the region.
Though Samsung has lengthy led on the entrance of the pack and stays in pole place, its share of the market dropped by a major 32%, with total transport demand down by 2% in Q2 2024 in comparison with the identical interval the yr prior.
In distinction, Apple grew its share in each quantity and pricing. In line with a report from the analysis group Market Monitor, Apple’s success will be attributed to strategic pricing methods and the recognition of legacy fashions, creating a really noticeable development of 44% between 2023 and 2024.
Brazil represented the principle growth driver, adopted by Mexico for Apple, with a concentrate on domestically assembled legacy fashions of each 4G and 5G fashions. But gross sales have been up throughout all LATAM international locations save for Argentina, attributed to the nation’s ongoing financial woes. Of specific be aware was information earlier this yr that can see iPhone 15’s, and doubtlessly different fashions sooner or later, manufactured in Brazil itself. In a rustic the place new handsets can usually retail for double the equal value of North American neighbors, this native manufacturing is predicted to begin bringing down these excessive value tags to regional customers by saving on logistics and different transportation prices.
Nonetheless, it’s additionally necessary to complete this part by stating that the smartphone market in LATAM presents heat situations for all gamers, with a 14.5% year-on-year cargo improve famous for all smartphone distributors.
This means that demand is ripe throughout the area, and the end result of who holds first place on market share within the years forward will hinge on attractive options and catering to market wishes. On this entrance, Apple has two distinctive choices.
The rise of embedded SIM playing cards
Wanting additional into the long run, Apple’s resolution to take a strategic wager on the rise of eSIMs might additionally see its market share of smartphone gross sales in LATAM rise additional. Brief for ‘embedded SIM’ the rise of eSIMs has represented one of the crucial main shifts to smartphone connectivity in recent times.
In 2022, Apple determined to make a daring resolution in the course of the improvement of the iPhone 14 to eliminate bodily SIM ports and depend on eSIM expertise alone within the US market. As with Apple’s choices over time to eliminate issues like headphone ports, the choice was considered as radical on the time.
But if we quick ahead to 2024, the chips are in for Apple’s wager on the long run path of SIM card expertise.
When discussing eSIMs these are most frequently positioned inside the context of world journey. And whereas that is one main use case and cause behind the expansion quantity of eSIMs worldwide since 2022, in addition they characterize a way more purposeful development that helps Apple’s ongoing quest to ship a streamlined smartphone expertise.
Whereas customers of different smartphone suppliers can select so as to add an eSIM on high of the bodily card when touring or for added flexibility, Apple’s method to steadily combine eSIM performance whereas nonetheless providing the selection between a bodily SIM and eSIM is a strategic transfer. It permits customers exterior of the USA to ease into the eSIM expertise whereas benefiting from the liberty, flexibility, and sustainability that eSIMs provide. Nonetheless, if Apple can proceed refining the eSIM activation course of, it feels inevitable that the long run will probably be eSIM-only.
Circling again to LATAM markets, an eSIM-driven future seems to be probably right here too. For example, we already know that Brazil is likely one of the main development drivers for smartphone gross sales of each Apple fashions and different producers. Now, a serious announcement from Wi-fi Logic suggests the nation can even act as a take a look at case for future eSIM adoption inside LATAM.
Utilizing its partnerships with round 200 cellular community operators, Wi-fi Logic gives eSIM options that search to beat regulated roaming restrictions for organizations with multi-country IoT deployments.
Extra broadly, a latest report revealed by RCR Wireless famous that 34% of operators in LATAM have already launched an eSIM providing, with Argentina, Brazil, Chile, Colombia and Mexico main the way in which.
The report additionally famous that eSIM adoption is about to succeed in 75% in LATAM by the top of the last decade. For smartphone producers which have constructed handsets to prioritize eSIM performance as seen with Apple, this might change into a serious deciding issue for customers within the very close to future.
Greatest-in-class AI service providing
Lastly, the exceptional potential of AI goes to be one thing customers more and more anticipate to see as a regular characteristic of smartphones because the expertise turns into extra ubiquitous every year.
Apple’s partnership with OpenAI marks a shift from Siri’s fundamental help to a context-aware, proactive AI that learns consumer habits to boost every day actions. This integration allows seamless performance throughout iPhones, iPads, and Macs, providing customers a extra unified, personalised expertise. As AI turns into central to the Apple ecosystem, this evolution strengthens consumer loyalty, positioning Apple as a pacesetter in delivering cohesive, clever machine interactions tailor-made to particular person wants.
The discharge of Apple’s iPhone 16 has proven AI takes an much more main position than in earlier handsets, with AI as an embedded assistant throughout most actions. Whereas Siri was groundbreaking in its day, Apple hadn’t launched vital updates to the assistant’s capabilities in various launch cycles.
But after seeing the energy of ChatGPT, the corporate introduced a strategic pivot earlier this yr, announcing a partnership with OpenAI itself on the firm’s annual developer convention, WWDC. It’s necessary to notice that Apple has usually been fiercely married to producing authentic merchandise and options, suggesting the choice to companion, slightly than compete, with ChatGPT was a major change in method.
Quick-forward to October 2024 and the long-awaited launch of Apple Intelligence is now stay on iOS 18.1. The brand new replace will convey customers with an enormous vary of AI-driven options on to their handsets, silencing critics that the model was shedding its edge after failing to behave shortly sufficient right here.
On condition that different manufacturers have already built-in generative AI options into their handsets and Apple’s newest ChatGPT built-in providing, it’s protected to say that the expertise is already a regular characteristic in smartphones that patrons in LATAM and past will look to see within the newest fashions.
Altering smartphone preferences in LATAM
The battle for supremacy between Samsung and Apple inside smartphone markets is an ongoing international development. But with embedded eSIM and AI expertise mixed with rising demand and extra native availability to handsets, Apple might lastly achieve a greater foothold in LATAM as these developments recommend change is afoot.
Disclosure: This text mentions a shopper of an Espacio portfolio firm.
