Latin America is witnessing an insatiable demand for internet and smartphones among its 650 million population. In fact, “smartphones have been pivotal in establishing Latin America as one of the largest consumers of social networks in the world, with the vast majority of usage occurring on mobile networks,” reports GSMA Intelligence. Furthermore, some of the region’s key markets rank among the highest in the world for total hours per week spent online, notably on mobile devices, including Brazil, Mexico, and Argentina.
In 2012, smartphones accounted for less than one in ten connections. Nowadays, smartphones represent six out of ten mobile connections. This is only expected to increase as much of Latin America experiences stronger economic growth, and as the new middle class seeks newer technologies. Additionally, new technology updates and the evolution of smartphones will drive growth in the coming years.
It is no surprise, then, that global e-commerce platforms and retailers are rapidly investing in Latin America as well. China, for example, wants to build an internet finance platform in Mexico, says Bloomberg. Smartphone company Transsion Holdings is setting up operations in Colombia. China Mobile Games & Entertainment plans to distribute mobile games in Mexico.
Samsung, for instance, has captured nearly 30% of the Latin American market across the six most prominent markets — Brazil, Mexico, Chile, Argentina, Colombia, and Peru. However, while Samsung holds a considerable market share, sales of Apple iPhone devices are growing much faster than those of other brands, according to The Wharton School. In fact, Apple is still aggressively advancing in the region. It is expected to open its first global flagship store in a shopping mall in Mexico City by 2019. Apple has also signed a lease for its next location in Antara Hall, just months after opening its first store in the Centro Santa Fe mall in Mexico.
Even companies like Cool Holdings Inc. (formerly InfoSonics Inc.) are expanding their exposure to Latin America’s insatiable need for smartphones and other technologies.