All plain sailing for Samsung in Brazil

Samsung has not seen any significant impact on the production and shipping of smartphones in the Brazilian market despite the macroeconomic, components and supply chain effects, according to Renato Citrini, senior products manager at Samsung Brasil.

The executive was speaking to reporters during a Claro event in São Paulo.

Samsung has two plants in Brazil, mostly focused on smartphones: one in Campinas, São Paulo state, and another in Amazonas' Manaus free trade zone, where the South Korean company benefits from tax breaks for local electronics manufacturing.

“We have a very favorable situation in Brazil, because we own two factories. This gives us flexibility in demand. With that, we manage to smooth out the impacts. And these plants run only to serve the Brazilian market, which reflects the country's importance to the company as a whole,” Citrini said in reply to a BNamericas question.

The executive said there was no major manufacturing hiccup during the peak of the pandemic, claiming the company was able to balance production between the two plants. 

Citrini also said Samsung has no plans, at least in the short term, to increase its industrial park in Brazil. The company is the market leader in the country.

According to GfK data from December, Samsung had a 53.4% share of the Brazilian smartphone market, and 57.6% if only 5G devices are considered.

In Brazil, Samsung has launched 30 models able to run on distinct 5G formats since the second half of 2020, according to Citrini. However, he did not reveal how many phones the company ships monthly from its local factories.

For 2023, Citrini said the trend will be to make more 5G smartphones available to the market and fewer 4G ones. 

Local time-to-market has been faster as well. The company's most recent launch, the flagship S23, was simultaneous with the global launch.

IDC projects growth in smartphone sales in Brazil this year of 6% and focused on simpler models.

The consultancy forecasts the Brazilian device market will reach US$21.5bn in sales this year, up 1.1%, with smartphones totaling US$13bn and computers US$5.8bn. The rest is divided among wearables and tablets.

MEXICO

The Korean company also has Latin American production in Mexico, but more focused on home appliances.

Last July, Mexican foreign minister Marcelo Ebrard said Samsung committed to investments of US$500mn in the country to increase production at its Querétaro and Tijuana plants, which also serve the US market.