It is official. Football, Soccer, or Futbol - whatever you call it - really is the world’s favorite sport. Estimated at 3.5 billion, the number of football fans equates to half the world’s population. Brazil literally hosted the world this year and what amazing hosts they were! #ThankyouBrazil
This month, over 600,000 tourists descended upon Brazil for the FIFA World Cup 2014. Despite being the home of some of the world greatest footballers of all time, many Brazilians had been protesting about the government’s spending program to host this global sporting event. At $11.2 billion (USD) 2014’s World Cup is the most expensive ever, but how do these costs compare to the rest of the Brazilian economy?
Before the 600,000 tourists landed in Brazil and World Cup fever gripped this tropical paradise, there was actually a lot of internal controversy in the country. In the days preceding, thousands marched in protest in major cities such as Sao Paulo, street art satirizing the World Cup flourished and there was even talk among Brazilians claiming they wanted to lose the World Cup, because they feared winning the trophy would be seen as an endorsement of the current government.
Most of the protests focused on what was perceived to be huge amounts of money spent on the World Cup instead of welfare, and echoed a general fear of corruption in Brazil, conflating them with accusations of corruption at FIFA. John Oliver's video below deftly tackles that subject.
However, much has been said about these fears being unfounded, so we decided to take a look at all the numbers and see what we could make of them. We put all of the data into this free to download, "App Economy in Brazil Infographic."
The main thing we found was that government spending on the World Cup really was not particularly extreme and did not seem to be at the expense of general welfare spending. In fact, the government spent 25 times more on welfare than the World Cup over the same period.
One of the benefits of the government spending program on the 12 host cities for the 2014 World Cup in Brazil, is that high speed mobile data services will be improved nationwide and even brought to areas of the country that have not previously had access to the internet. These services actually seem to be something that Brazilians overwhelmingly want and will pay for, with domestic spending on electronics over the same period (approximately $1976 million) projected to be 7 times that of Government spending on Welfare (approximately $281 million).
No longer a country characterized by extreme poverty Brazil has seen the unemployment rate drop from 12.3% to 5% over the last 10 years. 104 million people - just over half of the country - now belong to the middle class (104 million people). This means Brazil has seen a growing appetite for consumer goods and billions are spent every year on electronic devices, from smart TVs and consoles to smartphones and tablets.
Although import taxes/duties on electronics are much higher than most countries, wealthy Brazilians spend an average of $1080 USD per year on electronics, making them the highest value global consumers of electronics after China.
The Smartphone Market in Brazil
Of the 199.3 million people, 55 million people own smartphones (Ranks 4th in world), with 75 million cell phones in the country.
An iPhone in Brazil is considered a luxury item, costing 2x more than the USA at $1174. For a worker on minimum wage, earning $310 a month, it would take them nearly 4 months to save up for one and that does not include living costs!
Nonetheless, 2013 was dubbed the "Year of the Smartphone" in Brazil, with over 35 million sold. Smartphone sales are expected to rise yet further in 2014 with cheaper devices similar to the iPhone 5c entering the market.
Of the 199.3 million people, 55 million people own smartphones (Ranks 4th in the world behind USA, China and Japan) , with 75 million cell phones (i.e. including 'dumb' phones) in the country.
Most Popular Mobile Data Plans in Brazil
- 105.5m are 3G services subscribers
- 2.1m are 4G services subscribers
Most Popular Mobile Networks in Brazil
- Vivo (29% of subscribers)
- Tim (27% of subscribers)
- Claro (25% of subscribers)
Most Popular Smartphones Manufacturers in Brazil
The Mobile App Economy in Brazil
In 2013, 70 billion mobile apps were downloaded all around the world. Appmakr offers a simple way to jump into this market with your best ideas. In Brazil, 3 paid apps are downloaded for every 100 free app downloads.
The current worth of the Global App Economy is estimated at ~$110bn USD (2014) and expected to be worth ~$160bn in 2017.
Brazil is the 6th largest app economy in the world. A study of Apple Appstore revenue found Brazil was the 6th fastest growing territory.
Most Popular Free Apps
- WhatsApp Messenger
- Retrica App for selfie
- Facebook Messenger
- Angry Birds Epic
- FiFa Official App
- World Cup 2014
- Trivia Crack
- Qual é a Música mp3
Most Popular Paid Apps
- Poweramp Full Version Unlocker[App]
- Card Wars - Adventure Time[App]
- BringGo Brazil[App]
- CN Superstar Soccer[App]
- Speak & Translate － Live Voice and Text Translator with Speech and Dictionary[App]
- Free Ringtones.[App]
Famous Apps Made in Brazil
- Antivirus & Seguranca Gratis
- 99 taxis
- Recarga TIM
Brazil App Economy Infographic
So, as you can see, with huge domestic demand for mobile devices and services, the World Cup might have been the just the right set of circumstances to make the case for improving the mobile data infrastructure throughout the country. The Brazilian football team may have strained under the weight of national pride and the eyes of the world upon it's shoulders, but all over the country the people of Brazil will enjoy the fruits of hosting the beautiful game for years to come.
Viva Brazuca Digital!
If you'd like to use the full infographic on your own site, or to illustrate your own articles, feel free to download the image here.