Tuesday , October 4 2022

Eight million smartphones will be sold this year: Chile's new requirement when buying a cell phone


After the age of eleven, the curve broke its tendency. A technological device market, year on year will come to record sales numbers, remember 2018 as the year that the historical streak broke.

According to a consumer bulletin made by the IDC group, a company that analyzes the markets and the technology sector, this year sales of electronic items will fall by 8%. As a result, if there were a total of 11,400,000 inventions sold in 2017, it is expected that this number will be reduced to 10,560,000 registered units by the end of 2018.

From that universe of about 840 smaller articles, the leading technology that has also fallen: smart phones are influencing many. The success of smartphones, a season collected since 2007, came to break only now. That's because of the launch of the first iPhone, the market shot down telephone equipment at a winning pace, up to this year the total sales fell by 5.7%.

Last year, 8 million 444,000 smartphones were sold, but that number was cut to just under 8 million (7,986,000 items). The other important technological items also hold the trend: it is estimated that 1,293,000 notebooks will be sold, 61,000 fewer devices than in 2017. The tablets, on the other hand, will represent a total of 665,000 of items sold, which represent 100,000 devices less than last year.

"In terms of 2017, the local market has had a substantial contractual behavior in units," said Cristián Peña, an IDC consumer analyst, adding that they do not expect a Christmas miracle to change the trend at the end of the year. "Sales bricks fell compared to previous years. The trend so far was that this quarter had grown on double digits (+ 10%) compared to the previous quarter, a phenomenon that will not happen this year (-11%) ".

The explanations for this phenomenon are mainly predominantly: a minority of foreign tourists, and a stock-filled market. Nevertheless, Peña emphasizes something: "Selling devices in units that were lower than previous year, but the use of technology has not dropped." How does that explain?

Factor cross-Andean

That the Los Libertadores trail in the mountains has been less crowded, says by IDC, a lot to do with the 450,000 fewer smart phones that will be sold. Argentina, who was familiar with technology that suffers in Chile, has reduced their visits to the country.

Between January and October, the Federation of Tourism Companies (Fedetur) counted for just over 4 million 700,000 foreign tourists who visited the country. However, in the same period of 2017, there were already 5 million 240,000 overseas visitors, showing a 10.3% decline in these visitors.

The majority of this deficit is due to cross-Andean countries: up to October last year there were 2 million 760,000 visitors from that country, but in 2018 they rarely exceed 2 million 100,000 tourists.

"Due to different economic circumstances, the 600,000 fewer Argentineans had a hand in the regression, first, because a few years ago the majority came only to buy and, secondly, those who come now may be influenced on the context, they may buy less, "said Rodrigo Saldías, director of the School of Economics of Central University.

The fraudulent data

As the IDC analyzes its own figures, the product sales total has been disrupted, it does not necessarily mean that the use of technology is lower. In fact, and despite the fact that sales are not disclosed, the technology market grew, according to a number of actors.

How is this explained? Samsung and Huawei, two leading mobile phone manufacturers in Chile, revealed when Publimetro was consulted that the access and exit margins (equipment of up to 170,000 pesos around) gradually losing land due to the explosion of sales in the middle range (up to $ 300,000).

"As we see, the average ticket (the amount people spend to buy a phone) has increased by 100,000 pesos in recent years, the access range is losing weight and the average range is growing, and next year we expect the same, "said Marwee Fuster, the Huawei product manager.

Fernando González, Technology Manager Samsung Chile said, "the telephony, country, behaves as a mature market, penetration is complete and sales do not necessarily reflect the creation of new clients." So, he says, the company "improves its premium offer, in response to consumer needs and opportunities."

Indeed, among the top 10 devices sold by Entel and Wom companies, the threshold ranges from 50,000 pesos (Motorola Moto C) to 600,000 (iPhone 8). In the list, for the rest, it also includes tools such as Samsung Galaxy J7 Pro and Huawei Mate 10, which is almost 200,000.

The decisive factor

Fernando González, assistant manager of Terminal Products of Entel, states that, along with the "increase in the average ticket they have experienced", it is also added that "change rings have also extended".

In this line there is also the economist Rodrigo Saldías. "People's effort is to choose the most expensive device, aiming at better benefits, and renewing less equipment." The other is the status, which now exists frequently and always forces people to migrate into higher ranges.

Knowing that, from Samsung they estimate that the period of refurbishment of equipment, which at some time is less than 12 months, has already extended to one year and a half. So, the different makers have been responsible for facilitating payment methods in installments to attract those who are willing to pay for medium and high ranges.

WOM states that "there are now more people who prefer top-end equipment than before, mainly because they have a better performance and a camera, but also because of the pay facilities". This last factor is particularly important, as the company believes it is particularly important to offer "from 2 to 24 free installments with different banks".

Another element to consider, said Marcelo Fuster from Huawei, is "erosion of the features that the premium range – over $ 500,000 – has been provided to lower ranges." That is, market behavior itself has meant it is proposed that mid-range products, at the upper price of a higher cell, will be able to enjoy similar performance and camera performance.

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