Intermediate: The Battleground Of Cell Phones In Brazil

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Intermediate: While there is a downturn in the premium cell phone segment in Brazil, the intermediary sector continues to grow. Even with the chip crisis disrupting the lives of manufacturers, the launch of smartphones with a focus on cost-effectiveness in the country, with prices in the range of R$ 2 thousand, is still a priority for brands. According to IDC data, devices in this segment represent no less than 80% of the entire phone market in the country.

And the trend is for this number to gain strength on Black Friday 2021: according to Buscapé, 5 of the 10 most popular cell phones for the commercial date are intermediate models — the rest of the list is composed of past generations of iPhone and the Galaxy S20 FE , a top of the line made with cost effectiveness in mind.

Thanks to the importance of the price of devices for the Brazilian consumer, the main manufacturers continue to launch dozens of devices focused on cost-effectiveness annually. Thus, while the top-of-the-line sector shrinks in Brazil, the segment of intermediate devices is a real battleground for companies like Xiaomi, Samsung and Motorola.

Following different strategies and in different realities in the country, every manufacturer has a common goal: to attract the attention of consumers who are looking for a quality cell phone, but don’t want to spend too much.

Shooting everywhere

Even without domestic manufacture, Xiaomi has already launched more than 30 cell phones in Brazil, the vast majority in the entry, intermediate and intermediate premium segments. The company has been officially operating in the country since 2019 through a partnership with DL Eletrônicos, which also takes care of POCO, one of the main sub-brands of the Chinese giant. As in the top-of-the-line segment, the absence of a factory in the country ends up leaving the company in the hands of export taxes, but Luciano Barbosa, head of the firm’s Brazilian operation, points out that the brand is already showing significant growth here.

According to the company, the strategy is to attack from all sides, serving from consumers looking for more professional features to users who just want a competent smartphone that is not expensive. “Part of our strategy is to launch many products, so we can reach different audiences,” explains the spokesman for the Chinese manufacturer.