Self-Sufficiency + Budget Phones 'Sweet Combo' Emerges... iPhone's 'Unstoppable Momentum'

[Asia Economy Reporter Koo Chae-eun] Since the release of the iPhone 12, the number of consumers seeking unlocked phones and budget phone plans has significantly increased.

According to KT M Mobile, the leading company in the budget phone industry, the number of new subscribers to three types of high-capacity LTE plans increased by about 38% during the week from October 30, when the iPhone 12 was released, to November 5, compared to the October average. This figure is higher than the approximately 21% increase in new subscribers during the week following the release of the Galaxy Note20 on August 21, compared to the previous month's average.

LG HelloVision also explained that the average daily number of subscribers to high-priced LTE plans increased by 31% compared to the October average during the same period after the iPhone 12 release. This is slightly higher than the 24% increase in average daily subscribers during the week following the Galaxy Note20 release compared to the previous month.

In particular, the iPhone traditionally has a higher proportion of unlocked devices, which appears to have a positive impact on the expansion of budget phones. A telecommunications industry official said, "As the unlocked phone market expands recently, interest in budget phones is increasing, especially among younger generations," adding, "We plan to continue efforts such as promotions related to flagship devices to maintain this interest."

Budget phone companies actively sought to increase consumers by offering separate promotions providing benefits when purchasing unlocked phones and subscribing to budget phone plans at the time of the iPhone 12 release, or by launching exclusive insurance products. U+ Budget Mobile also introduced the first iPhone-exclusive insurance product in the budget phone industry in mid-November.

Furthermore, following the Ministry of Science and ICT's recent reduction of wholesale network fees for 5G plans, budget phone companies are expected to launch additional plans and actively challenge the 5G market.

Meanwhile, the iPhone 12 and Pro, released on October 30, sold 500,000 units during the domestic pre-order period, and sales are expected to reach 1 million units by the end of the year. Apple will additionally release two models, the iPhone 12 mini and Pro Max, in Korea on the 20th.

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