Revenue from the sale of cell is doubled in Mexico; Telcel manda, AT&T grows

The cellular market continues to grow aggressively in Mexico, and due to this, it also changes and evolves. For example, a few years ago the sale of cellular phones accounted for a tiny portion of the income that had the operators in our country, while the sale for the sale of voice and data it was the real deal.

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Now the schema has changed and consumers are purchasing more computers, so says the report “Income by Mobile Equipment” corresponding to the second quarter of 2018 published by The Competitive Intelligence Unit (The CIU), in which he explains that the mexican people are now more aware of the technology upgrades and replace their cell phones with greater frequency. Also the increasing use of social networks, the aesthetic appeal of the devices and the promotions implemented by the operators have doubled the profits from the sale of equipment.

Between the second quarter of 2014 and the same period of 2018, the percentage of income of operators in Mexico by sale of equipment step from 16% to 34%, more than double. During the second quarter of 2018 (2T18), the mobile market generated total revenues by $70,562 million pesos, an amount that represents a growth of 11.2% with respect to 2017.

In contradiction in terms, revenues for operators by the service consumption barely increased by 0.4%, while those corresponding to the teams they did it in 39.5%.

What and who sells more cell phones?

According to the report of The CIU, Telcel remains the main of Mexico, but AT&T managed to grow more than double its revenue from the sale of equipment in our country, although its services operation had a setback, while Movistar will only increase their income by 30%.

  • Telcel accounts revenues by $49,567 million pesos, an increase of 13.9% compared to the figure reported in the same period of 2017. This dynamic is explained by the growth of 8.3% of the services and 25.0% of the teams.
  • AT&T recorded $13,501 million pesos, a 9.4% more than in the second quarter of 2017, due to the fall of 18.6% in the services component and an extraordinary growth of 124.9% yoy in the one of computers.
  • Movistar reached revenues $7,213 million pesos, which represents a fall of 2.4% year-on-year, strongly affected by the annual decrease of 9.2% of the services, which were not compensated by the growth of 30.2% in teams.

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