Samsung President States Latin American Consumers Are Willing to Pay More for Premium Cell Phones

Samsung's president, HS Jo, stated that Latin American consumers have shown a greater understanding of the benefits of high-end smartphones and are willing to invest higher amounts in them. This shift in perception should drive Samsung to increase the availability of its most sophisticated devices in the region.

Smartphone Market Overview

According to the executive, the overall smartphone market is declining, except for the premium segment, which includes products valued over US$ 600 (equivalent to approximately R$ 3,050 in direct conversion). Although global sales fell by 11% in the second quarter, the projection for the second half indicates a 17% reduction in Latin America. However, the premium segment is expected to grow because Latin Americans better understand the attributes of the devices, especially in the context of artificial intelligence, and are ready to pay the high price.

Samsung supports the acquisition of new products through financial facilitation programs. The trade-in system is very popular in Brazil and Mexico, where the company estimates that between 40% and 46% of new phones will be purchased using this benefit, allowing the customer to use their old device as part of the payment.

Logistics and Trade-in Programs

Returned devices undergo a process managed by the company's partners, who are responsible for collection, evaluation, and subsequent sale in the used market. This procedure is part of the Smart Trade-in program, also known as Conscious Trade-in, operated by Brightstar, which handles retrieval, technical testing, and sending the devices to specialized second-hand retailers.

New Consumption Models

HS Jo expressed optimism about the viability of subscription models for electronics. In South Korea, his company implemented the AI Subscription Club program in December 2024, initially focused on smart home appliances such as refrigerators, washing machines, robot vacuums, and televisions. The consumer pays a monthly fee instead of the total cost, with maintenance and after-sales support often included. Subsequently, Samsung expanded this service to include Galaxy smartphones and tablets in February 2025, extending it to the United States as well.

Advanced Connectivity and Trends

Regarding cutting-edge technologies, such as the new Z Fold 8 foldable, which has a 'passport' format, the possibility of direct connection with satellites in Earth orbit was addressed. Although this functionality has not yet been launched, satellite services are seen as a trend in Latin America. Samsung has already established partnerships with Starlink and the operator Entel in Chile, forming a tripartite collaboration, and plans to extend this technology to Peru.

In Brazil, the situation is uncertain. The National Telecommunications Agency confirmed the possibility of Direct Device-to-Device (D2D) communication, provided Samsung is associated with a local operator. Tests were conducted in São Luís (MA) between May and June 2024, involving Claro, TIM, and the satellite operator AST SpaceMobile, under a regulatory testing regime. Despite this, no solution has been made available to consumers yet. Samsung predicts that, in the future, even simpler models, such as those in the Galaxy A line, may incorporate this technology.

Innovation and Customer Loyalty

Regarding the increase in smartphone prices, HS Jo acknowledges that the industry faces challenges due to the race for memory chips (RAM or storage) driven by artificial intelligence. However, he argues that the final costs of recent launches, such as Fold 8, Fold 8 Ultra, and Flip 8, justify the concrete innovations and added value, citing, for example, the new 5,000 mAh silicon-carbon battery in the Ultra model.

He expressed great confidence that innovations in foldables will bring superior results compared to the past. In the field of AI, Galaxy AI has evolved from isolated functions, such as translation, summarization, and photo editing, to a systemic integration that understands the user's context and connects to applications and services to facilitate tasks. For HS, the loyalty of Latin American consumers to Samsung is a key factor for the company's maintenance in the regional market. In contrast, in the United States, Apple's strong presence makes the term iPhone used as a synonym for smartphone, given that Apple closed the fourth quarter of 2025 with 69% market share in the American market, compared to 13% for Samsung, according to Counterpoint Research data.

This loyalty will be tested with the arrival of the new foldable line in the region. Brazil, considered a priority market by Samsung, will host a launch event on August 6th, where the prices of the latest Fold, Fold Ultra, and Flip models, along with the Galaxy Watch 9 and Galaxy Watch Ultra 2, will be presented.