Cell phone sales on the rise as Brazilians replace devices

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Friday, September 1, 2017

Cell phone sales had another positive quarter in Brazil, with sales increasing 5.9% year-on-year in Q2, as consumers resume shopping to replace models bought in recent years, according to consultancy IDC.

Some 12.8mn phones were sold in Q2, which was also 3.7% more than in the first quarter of the year. Smartphones accounted for 12.1mn of the sales, rising 11.7% year-on-year, while feature phones accounted for the remainder, down 44%.

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Aside from replacing their two- or three-year old devices, Brazilians are buying more expensive models, said IDC. This has heated up the competition, leading to promotions by manufacturers, added the consultancy.

However, the average smartphone sales receipt declined 2.1% compared to Q1, reaching 1,044 reais (US$332). With growth in units but a decline in prices, cell phone revenues were flat quarter-on-quarter at 13.3bn reais.

For the rest of the year, IDC is expecting high sales during Black Friday and has made an upward revision to its full-year forecasts to a 12.6% increase in handset sales.