South Korea Smartphone Sales Down 10%... Mid-Range Phones Up

18% Decrease from Previous Quarter, 10% Decrease from Last Year
Mid-Range Smartphone Share Increases from 27% to 37%

[Asia Economy Reporter Han Jinju] Domestic smartphone sales in the first quarter decreased by 10% compared to last year. This is the result of reduced demand due to the novel coronavirus disease (COVID-19) and policies restricting subsidies. Although the smartphone market has contracted, the proportion of mid-to-low-priced smartphones within the smartphone market has increased.

According to global market research firm Counterpoint Research on the 3rd, domestic smartphone sales decreased by 10% compared to the same period last year and by 18% compared to the previous quarter.

Samsung Electronics maintained its position as the market leader with a 68% market share, boosted by its flagship new Galaxy S20 series. This is a 2% increase in market share compared to the first quarter of last year. Apple, ranked second, recorded a 16% market share, down 1% from last year. LG Electronics only released the V60 ThinQ overseas, but thanks to the mid-to-low-priced Q series, its market share remained the same as last year at 15%.

In the domestic smartphone market in the first quarter, the polarization of prices intensified further. Products priced over $600, such as foldable and 5G smartphones, accounted for 54% of the entire smartphone market. The market share of mid-to-low-priced smartphones priced under $250 expanded from 27% last year to 37% in the first quarter of this year.

Park Jinseok, a researcher at Counterpoint Research, explained, "The Korean smartphone market has gradually experienced price polarization since 2019, and this polarization reflects both a tendency to consume the latest specification phones and rational consumption that values cost-effectiveness."

The increase in smartphone online sales is also closely related to the rise in mid-to-low-priced smartphone sales. Domestic smartphone online sales increased from 9% in the first quarter of 2019 to 13% this year. Researcher Lim Sujeong of Counterpoint Research said, “The increase in direct online stores operated by mobile carriers, combined with the acceleration of e-commerce market growth amid the COVID-19 situation, is the cause.”

This content was produced with the assistance of AI translation services.