Honor and Xiaomi: The New Smartphone Powerhouses Reshaping the Peruvian Market
Peru’s smartphone landscape is undergoing a dramatic shift. While smartphone penetration already stands at a staggering 94.8% of households (as of 2025, according to Osiptel), the brands dominating the market are changing, and the battle for supremacy is intensifying. Forget the traditional giants – Honor and Xiaomi are rapidly gaining ground, fueled by aggressive pricing strategies and a focus on accessible technology. But what does this mean for consumers, and what can we expect to see in the coming years?
The Rise of Honor: A 32.6% Surge
Honor’s ascent in Peru is nothing short of remarkable. The brand now leads smartphone imports with a 24.4% market share, a significant 32.6% increase compared to the previous year. This isn’t simply about lower prices; Honor is strategically expanding its portfolio across all price ranges, from the budget-friendly X7d and X8d to the premium Magic 7 Pro and Honor 400 Pro. This broad approach, coupled with a growing retail presence – now boasting 16 stores and a new e-commerce channel – is proving highly effective.
“A pillar of our strategy is the variety of our portfolio, as well as after-sales service,” explains Eid Hirsh, Director of Public Relations and Communications at Honor. This commitment to customer support, alongside a robust distribution network, is building brand loyalty and driving sales.
Xiaomi’s Premium Push and Expanding Ecosystem
Close on Honor’s heels is Xiaomi, holding 23.8% of smartphone imports and experiencing a 20.8% growth in 2025. While also known for competitive pricing, Xiaomi is actively working to shed its image as solely a budget brand. Country Manager Tianshi LV notes that Xiaomi is increasingly “being perceived as premium,” and the company is investing in strengthening its high-end product offerings, like the Xiaomi 15T.
However, Xiaomi isn’t limiting its ambitions to smartphones. The company is aggressively expanding its AIoT (Artificial Intelligence of Things) portfolio, with plans to introduce more smart devices and potentially even large appliances. This move positions Xiaomi as a comprehensive technology provider, rather than just a smartphone manufacturer.
Samsung’s Struggle and the Price War
The biggest casualty in this shifting landscape is Samsung, once the undisputed market leader in Peru. Fernando Grados, General Manager of Dominio Consultores, attributes Samsung’s decline to a reluctance to engage in the intense price war that’s defining the market. “Samsung has very good products, but there is a kind of price war between smartphone brands,” he explains. With consumers increasingly prioritizing affordability, Samsung’s premium pricing strategy is proving to be a disadvantage.
Beyond 2026: RAM Supply and the Future of the Market
Looking ahead, the competition between Honor and Xiaomi is expected to intensify. Grados predicts they will likely alternate leadership on a quarterly basis. However, a potential bottleneck in the supply of RAM memories could disrupt this dynamic, potentially driving up prices across the board. This highlights the vulnerability of the smartphone market to global supply chain issues.
The current market breakdown reveals a clear preference for affordability: 1.2 million low-end devices (under $100) and 682,000 high-end devices (over $300) were sold last year, with the majority falling into the mid-range ($100-$299). This trend suggests that value for money will continue to be a key driver of consumer choice.
The Expanding Role of AIoT
The trend extends beyond smartphones. Both Honor and Xiaomi are diversifying into the broader AIoT ecosystem, offering products like headphones, smart home devices, and even robot vacuum cleaners. This strategic move allows them to capture a larger share of consumer spending and build brand loyalty beyond the smartphone category. Explore the growing smart home market and its impact on consumer behavior.
The Importance of E-commerce
The launch of dedicated e-commerce channels by both Honor and Xiaomi underscores the growing importance of online retail in Peru. This allows them to bypass traditional retail margins and offer more competitive prices directly to consumers. Learn more about the rise of e-commerce in Peru and its challenges.
Frequently Asked Questions
Q: Will Samsung regain its market leadership in Peru?
A: It’s unlikely Samsung will quickly reclaim its former dominance without significantly adjusting its pricing strategy. The current market favors brands offering more affordable options.
Q: What impact will the RAM supply shortage have on smartphone prices?
A: A prolonged RAM shortage could lead to increased smartphone prices, particularly for mid-range and high-end devices. However, the extent of the impact remains to be seen.
Q: Are there any other brands poised to challenge Honor and Xiaomi?
A: While other brands like Oppo and Realme are present in the Peruvian market, they haven’t yet achieved the same level of market share or growth as Honor and Xiaomi.
Q: What should consumers look for when choosing a new smartphone in Peru?
A: Consider your budget, desired features, and the brand’s reputation for after-sales service. Don’t automatically assume that a higher price tag guarantees a better experience.
The Peruvian smartphone market is a fascinating case study in how competitive pricing, strategic product diversification, and a focus on customer needs can disrupt established players. As Honor and Xiaomi continue to innovate and expand their offerings, the future of the market promises to be even more dynamic and competitive. What will be the next game-changing innovation in the Peruvian smartphone landscape? Share your thoughts in the comments below!