According to GfK, customers are paying more than 30% less for a device than in January
08/17/2022
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5G networks were activated on Tuesday in Curitiba, Goiânia, and Salvador — Foto: Pixabay License
The progress of the 5G coverage in Brazil — followed by the expansion of the supply of mid-range smartphones compatible with the technology — has driven retail sales, especially in recent weeks.
Between the first week of January and the beginning of this month, the average price of 5G cellphones fell 30.9%, according to data from market research company GfK. In the same period, the share of 5G models in total smartphone sales increased to 17.5% from 6.7% in volume. As these are products with a higher unit price, their share participation in the market’s sales in the first week of August was higher, at 33%.
The 5G networks were activated on Tuesday in Curitiba, Goiânia, and Salvador. Since July 6, when high-speed mobile internet debuted in Brasília, it has so far been present in certain neighborhoods of eight Brazilian capitals.
“We have noticed a 40% higher demand for 5G devices in cities that already have the signal, compared to the beginning of the year,” said Fabio Gabaldo, chief commercial and technology officer at Magazine Luiza.
The expansion of the mix of mid-range 5G models, in addition to the more expensive ones, contributed to a slight drop in the average price of the devices sold by the retailer, to R$2,800 from R$3,000 between July last year and the same month this year, Mr. Gabaldo said.
Fernando Baialuna, GfK’s chief retail officer, said the arrival of 5G networks is a stimulus for consumers to change 4G devices for more expensive mid-range models, in a mature smartphone market such as the Brazilian one — but it is a move “that still has a long way to go.”
In June, Brazil reported 259 million active mobile devices, being 207.7 million (80.2%) from individuals.
At retailer Fast Shop, the sales of 5G smartphones doubled in the second quarter compared with the same period last year and intensified with the arrival of 5G technology in São Paulo on the 4th of this month, while Mercado Libre reported having sold 10 times more 5G smartphones between January and July this year than in the whole of last year.
After the special offer of 5G devices for Father’s Day (second Sunday of August), Fast Shop informed that it would run two seasonal campaigns this month, including smartphones with 5G technology. In one campaign, which went live on Monday and runs until the 24th, the retailer highlighted the lines most wanted by consumers, giving discounts of 33.5% on Apple’s 128-gigabyte iPhone 12, and of 34.7% on Samsung’s Galaxy M23 5G for cash purchases with Brazil’s instant-payment system Pix. The next campaign will take place between August 25 and 31.
The greater interest for televisions in the fourth quarter of the year, because of FIFA World Cup, in November, can be another stimulus for smartphone sales promotions, said Mr. Baialuna, with Gfk.
“This year, the phenomenon of the second screen to watch the World Cup gains more strength since there are options of smartphones with better screen resolution and higher speed access to mobile networks,” said Mr. Baialuna. According to him, retailers begin to bring forward the supply of TV sets to September because of the World Cup and smartphones with discount are expected to follow this movement.
*By Daniela Braun — São Paulo
Source: Valor International