07/01/2008


Cell Phones Market in Brazil

 

Teleco's estimates, based on information released by the IBGE (more details), indicate that were sold in Brazil 45 million cell phones in 2007.

 

Part of these sales were for new customers added to the base and part for the trade of equipments.

 

Note: Consider that all new clients (net adds) bought new devices, what not always happens.

 

Sales of mobile phones in Brazil has accompanied the change of net additions (new customers added to the base). However, as the basis for cell phones grows, the exchange of devices has even more importance. Since 2006 the trade of equipments surpass the growth of the base.

 

In 2007, the trading of 24 million devices corresponded to 24% of the cellular basis of Brazil in 2006. In 2008, this proportion maintained and considering the net additions designed by Teleco (25 million), sales of mobile phones should exceed 54 million cell phones.

 

The following table shows the system used by Teleco to estimate the annual quantity of cell phones sold in Brazil

 

Net sales of cell phones in Brazil

 

  Thousands
2002
2003
2004
2005
2006
2007
1 Sold production
27,838
27,336
41,696
63,367
58,600
62,954*
- Exportation
11,088
11,268
8,871
32,882
32,043
22,028
2

Production domestic

market

16,751
16,067
32,825
30,484
26,558
40,926
+ Importation
276
1,365
1,289
4,542
3,002
3,946
3 Brazil Sales
17,026
17,432
34,114
35,027
29,560
44,872

*growth of 2% of the production in 2007 estimated by IBGE. The source to other years is IBGE.

 

The production of cell phones absorbed by the domestic market in Brazil (2) equals the production sold (1) less the total export. According to that estimate, in 2007, were produced in Brazil 63 million cell phones, while 22 million were exported and 41 million absorbed by the domestic market.

 

Toobtain the total number of cell phones sold in Brazil in 2007 (45 million) is needed to add production for the internal market (41 million) the amount of imported equipment (4 million in 2007). This systematic believes that any import is sold in the same year.

 

The production of cell phones in Brazil grew until 2005. That year, the cell phone has become the main item of exportation of the electric-electronic industry.

 

 

Exportations has been decreasing since 2006. Collaborated for it the decrease of the exchange rate US$/R$, which has caused reduction of exports from Brazil to some manufacturers, such as Nokia.

 

Production of Zona Franca Manaus

 

The decrease in exportation of Nokia, whose factory is located in Manaus, joint with the shift of production of cell phones to São Paulo by some suppliers (vendors) such as Samsung, is leading to a drop in the participation of the Zona Franca Manaus in the total production of cell phones in Brazil.

 

Note: production sold.

 

Global Market

 

The main world suppliers (vendors) of cell phones (Nokia, Samsung, Motorola, LG and Sony Ericsson) are present in Brazil.

 

 

With the 3G growth, is also increasing the production of smartphones in the world.

 

Worldwide sales of smartphones (shipments) in 2007 were 118 million of equipments with annual growth of 53%. They represent 10% of total devices sold in 2007. Nokia is also the leader in this segment with 45.2% of market share, followed by Rim (Blackberry) with 13.4% and Apple (Iphone) with 5.3%.

 

Models of devices in Brazil

 

In Brazil, 3G is still in the deployment phase and there are few models of devices approved by Anatel (Brazil's Regulator Agency). However, most of the models of appliances being sold on the market in 2008 were already GPRS/ EDGE.

 

 

You could ask:

  • What will be the production of cell phones in Brazil in 2008? And domestic sales?
  • Will cell phone exportation of Brazil increase in 2008?
  • How the entry of 3G affects this framework?
  • Is there space for more manufacturers in the market?

 

To send us a commentary, click on: teleco@teleco.com.br

 

Please let us know if you authorize the publication of your commentary.

 

 

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