New bank financing schemes have opened the opportunity for Mexicans to acquire a high-end mobile phone.
The Mexican population is willing to spend between 4,520 pesos and 5,160 pesos to acquire a mid- and low-end cell phone, revealed a study prepared by The Competitive Intelligence Unit (The CIU), making it clear that the marketing of smartphones in Mexico has evolved significantly in recent years, largely due to the move from a subsidy scheme to a financing scheme.
According to the consultancy, in 2021 Mexicans spent 4,371 pesos on smartphones, but in 2023 the average amount spent ranged from 4,520 pesos to 5,160 pesos, that is, 14.1% more, evidencing a willingness to invest in better quality equipment through deferred payments.
How many phones were sold in Mexico?
The CIU detailed that more than 30 million new smart mobile devices were sold in the country, with a market value of more than 125 billion pesos.
In this regard, it specified that during the first quarter of 2024, 7.9 million smartphones were sold, 42.5% of them acquired through some financing scheme, which represents an increase of 3.6 percentage points in the adoption of financing compared to the previous quarter.
Low, medium and high-end mobile phones: which do Mexicans prefer?
The Mexican population has historically faced limited access to banking services, so that was a limitation to being able to acquire a mobile device on credit. However, the use of bank financing schemes, operators, warehouses and supermarkets, among others, has enabled the acquisition of smartphones with greater capacities and better range.
In this regard, department stores have established themselves as the preferred point of sale for the acquisition of smartphones under financing schemes, chosen by 40.6% of users.
This circumstance is due in part to the low availability of credit cards in Mexico, so much so that only 10.5% of the population between 18 and 70 years old has one.
In contrast, 20% of this population uses departmental cards or financing schemes offered by them, which often involve the payment of interest. Currently, 28.5% of smartphones acquired through financing include the payment of interest.
Replacing old cell phones
The CIU explained that the frequency of replacement has also gained momentum due to the increase in the adoption of financing schemes. In this regard, 56% of users who buy their equipment through credit, mention that its validity ranges from 12 to 24 months.
It is worth noting that the reconfiguration of the smartphone market began approximately five years ago and is still far from having reached a period of stabilization, so The CIU stated that it is reasonable to think that new strategies will continue to emerge to capture a greater market share, adapting to the changing demands and preferences of consumers.
Smartphone financing in Mexico has proven to be a powerful tool to democratize access to better technology, enabling more Mexicans to enjoy devices with better capabilities, greater durability and a superior user experience.
Source: eleconomista
