South Korea Smart Phone Market Report and Forecast 2024-2032

South Korea Smart Phone Market Outlook

The South Korea Smart Phone market reached a value of more than USD 9.68 billion in 2023. The South Korea smart phone market is expected to grow at a CAGR of 8.1% between 2024 and 2032. Factors such as faster broadband connection and new smart phone launches are anticipated to propel the South Korea smart phone market.

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News and Developments in the Market

• An eco-friendly transparent smart phone  by a U.K based start-up called 'Nothing' is to be launched soon in South Korea. The smart phone called 'The Phone 1' will be exclusively available on e-commerce platforms. The device is expected to perform well in the country due to its affordability, unique design, and sustainable approach. 

• Samsung electronics unveiled Galaxy Z Fold 4 and Flip 4 foldable smart phones  in more than 40 countries. In the home country, more than 970,000 pre-orders were made within seven days, making up the record the most significant portion of foldable phones in the country. The phone is thin and lightweight, has extended battery life and has a user-friendly interface, among others. 

Some experts believe that the brand is a pioneer in the global market for foldable phones, while some think that the phone is similar to the existing android phones without any new innovative features, yet the approximately 16 million models are expected to be sold this year. 

Opportunities in the South Korea Smart Phone Market

The surge in Smart Phone usage During Pandemic

The COVID-19 pandemic and lockdown severely affected everyone, and people resorted to video games and smart phones due to boredom. This resulted in increased use of smart phones worldwide. However, there was a decline in the premium smart phones segment as people focused on investing in health and immunity-related products. COVID-19 and lockdown led to the rise in sales of smart phones as parents, children, and youngsters all spent more time playing video games on their smart Pphones, leading to the growth of the smart Phone and video game industry in the country.
 

Government’s Intervention to Monitor the Health Progress via Smart Phone app

Ministry of the Interior and Safety of South Korea created a smart phone app called “self-quarantine safety protection”, which is mandatory for the people to install their smart phones so that the government can monitor the progress and location of their citizens who are infected or encounter an infected person in order to prevent to the spread of coronavirus. Since the country's smart phone and internet reach is remarkable, the government uses them as a medium for the country's welfare.
 

Excellent Internet and Smart Phone Penetration in the Country, along with Access to Online Healthcare Facilities

According to Korea Information Society Development Institute (KISDI), smart phones have become crucial for the South Korean population. The majority of Koreans opted for smart phones as an inevitable resource , followed by televisions. Furthermore, as per the world bank statistics, Internet penetration in south Korea till 2020 was 97%, and mobile ownership was 96% , making South Korea a vast and competitive market for smart phones.  

Telemedicine companies like Goodoc  have made healthcare facilities accessible from the comfort of homes. People can contact a doctor and get the medicines delivered to their doorstep. The advancement in telecommunications has improved medical consultation. Consultation services are now widely accessible via apps and are one of the aspects promoting the usage of smart phones. 

The commercialisation of 5G Networks in the country and the Continuing Research to Develop 6G Network 

The telecom sector of the Asia-Pacific region is expanding due to the increased investment in research and development. In 2019, South Korea became the first country in the world to commercialise the 5G network. The Ministry of Science and ICT is investing in research, mainly focusing on the Tetra hertz bands, space communications, over-the-top accuracy, artificial intelligence (AI) and steadfastness. The government have also set up 6G network  research institutes in three of the leading tech universities, which will further propel the progress of the smart phone market in the country. Factors such as growing disposable income and a high standard of living also aid the smart phone market expansion.

Challenges in the South Korea Smart Phone Market

Addiction to smart phones and deteriorating eye health

The addition of smart phones among youngsters led the government to initiate an addiction detox campaign. The obsession and dependence on smart phones have a detrimental effect on people's mental and social well-being. The percentage of people suffering from eyesight issues is increasing in South Korea. This could impede the market growth of the smart phone market in the country.

Market Analysis

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Based on the operating system, smart phone market can be segmented into: Android, and iOS, among others. Based in display technology, the market can be divided by LCD, AMOLED, and Others. South Korea Smart Phone Market based on the price range: Low-End, Mid-range, High range, and premium range. On the basis of distribution channels, the South Korea smart phone market is divided into offline and online.

• Samsung Electronics Co., Ltd.

• LG Electronics

• Apple Inc.

• Xiaomi Corporation

• Motorola Mobility LLC

• Others

Market Share by Operating System

The user-friendly interface, access to 5G internet services, and high standard of living are promoting market growth across all sectors. Android and iOS are the most preferred operating system, with android securing the larger market. With the growing innovations and new features, other operating systems are also expected to experience a significant rise during the given forecast.

Market Share by Display Technology

The demand for lightweight yet unbreakable smart phones is increasing worldwide. People mostly prefer AMOLED screens compared to regular LCD screens. Active-matrix organic light-emitting diodes are referred to as AMOLEDs. Compared to other display types, AMOLED screens often have a higher refresh rate. The term "refresh rate" describes how frequently the monitor can change the image on the screen in a single second. Each pixel produces more light as a result of the TFT, improving the visibility of the projected image as a whole. With constant development in display technology, numerous display types are being introduced in the market, allowing customers to choose from a wide variety of options.

Market Share by Price Range

The market is divided into low-range, mid-range, high-range, and premium ranges based on cost-effectiveness. The demand for high-tech smart phones has further augmented since COVID-19 as people started spending more time on recreational activities such as video games. As disposable income is high, people are capable as well as willing to spend more on advanced smart phones. 

Furthermore, the quality of a product is no longer the only factor in many consumers' decisions to buy it. The Korean word gaseongbi implies the worth of a good or service in relation to its cost. Currently, Korean customers base many of their judgments on this index. Customers shop on a variety of websites, like Naver and Daum, among others to get the best deals on products.

Market Share by Distribution Channels

Since COVID-19 hit the country, online distribution channels have become prominent. Factors such as fast and safe delivery, easy product return policies, and better offers, among others, boost the e-commerce sector. On the other hand, the offline segment still holds a low yet considerable share in the market. The significant growth of e-commerce in South Korea has been a primary driver of the smart phone market in the country. In addition, the increased use of payments via online wallets bolsters smart phone usage in the country.

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Competitive Landscape

LG Electronics: LG electronics is a subsidiary of LG Group, founded in 1958. The company is the second largest electronics manufacturer in South Korea. The brand manufactures consumer and commercial electronic devices such as smartp hones, televisions, home appliances, air purification solutions, and vehicle components, among others. The headquarters of LG electronics is situated in Seoul, South Korea. 

Motorola Mobility LLC: Motorola Mobility LLC manufactures electronic telecommunication devices such as mobile phones, headsets, and other devices. The company was founded in 1928 by Paul Galvin in the United States. Since 2014, the company has been a Chinese multinational company Lenovo subsidiary. The headquarters of Motorola Mobility is in Chicago, Illinois.

Key Highlights of the Report