Mobile phone sales remain strong in Brazil

The Brazilian press is reporting that major mobile phone manufacturers are expecting sales of 24 million units in 2007 as the market reaches maturity.

Strangely this does not appear to result from an increase in sales – last year also saw 24 million handsets being purchased. Apparently last year 14 million phones were sold to first time buyers and 10 million wee bought to replace and earlier phone.

In 2007 analysts are predicting 20 million will replace phones and 4 million new users will be signed up.

A large number of Brazilians cannot afford to purchase high end phones so there is a substantial market for basic handsets. New users are however being tempted by camera phones and other high end features.

Sony Ericsson are attempting to gain a stronghold in the market by producing medium level phones with cameras, MP3 players and internet access at a price that remains affordable to the mass market in Brazil.

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